So... anyone running a small business should know how to deal with maternity leave issues so it doesn't affect the business financially? OK, please give me the benefit of your advice.
I have been running my own small business for 13 years. As it happens, the staff are all female (because they happened to be the best people for the job). My key member of staff has been on maternity leave twice over the past three years. I understand the SMP thing - as a small business, we get it reimbursed by the government and get a small contribution towards the admin costs as well - so no financial problem there except, if course, for how you cover a specialised post for nine months at a time.
But what I absolutely don't get is why, when the staff member comes back from maternity leave, she has accrued annual leave for the nine months she was on paid maternity leave. In a business like mine which works by charging out its staff time to clients, the only way to cover annual leave costs is to charge out the time at a rate which covers a proportion of annual leave costs too. However, if a member of staff isn't working, there is no way of generating money from her time to cover her annual leave costs. (The temporary cover's charge-out rate covers her annual leave costs only.)
The result is that I am currently working extra hours myself to cover the costs of the annual leave my member of staff has accrued while she has been on maternity leave. And as far as I can see, this will be the case any time a member of staff goes on maternity leave.
So what am I doing wrong? This is a genuine question BTW. Am I supposed to raise our charges to my clients to cover this cost - because if I do, the market is so competitive that we will probably lose our contracts. And the cost of funding 4-6 weeks annual leave in a small business is not insubstantial.
I am not a sexist employer. I am genuinely happy to see my staff having babies, we have flexible and home working to try to make things as easy as possible, and I invest a lot in helping my staff achieve their potential for their benefit and that of my business. I have two young children myself. But this issue of accrued annual leave entitlement really puzzles me. I can see that it isn't an issue in large businesses but for a small business like mine it does bite a bit. And I can see why it would put off another small business from employing staff who might go off and have babies.
Perhaps one of the posters above with expertise in running small businesses could put me right... Or am I just another worthless loser who runs her own business and deserves all she gets?