Parental Leave in the US and Abroad Tiffany D. Downs Scott V. Wagner, Jr. FordHarrison September 16, 2015

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Presented by… Tiffany D. Downs Scott V. Wagner, Jr.

Since 1978, FordHarrison has enjoyed successful partnerships with many of the nation’s largest employers, assisting in all areas of labor, employment, immigration, and employee benefits through its 23 offices, six affiliate firms, and over 200 lawyers. The firm's Employee Benefits group assists numerous public and private employers (including many Fortune 500 corporations) with all aspects of their compensation and benefit plans and programs, from design and implementation through termination. Our experience and expertise allows us to advise employers and others regarding all types of qualified and non-qualified retirement and deferred compensation plans, health and other welfare benefit plans, fringe benefit programs, executive compensation plans and agreements, and related matters. FordHarrison and Ius Laboris

Ius Laboris: Much More Than a Referral Network – FordHarrison is a member of Ius Laboris, a global alliance of leading law firms providing legal services in employment and labor law, pensions and employee benefits in 43 countries. As the largest group of independent employment law specialists worldwide, the alliance offers its clients global coverage. Through Ius Laboris, our clients benefit from: labor law, social security and tax, pension and immigration assistance in all countries where they have operations; a coordinated approach by leading law firms; a consistent high-quality international service; access to the Global HR Law Knowledge Base which answers questions posed by HR Directors and General Counsel on complying with employment law; and a cross-border service at a competitive price. FordHarrison and Ius Laboris

Which of the following best describes your Company’s efforts to implement a parental leave policy? We have/are: ◦One policy for all jurisdictions. ◦Developing regional policies. ◦Currently developing a policy. ◦No parental leave policy. Poll Question

Parental Leave Laws: United States No uniform paid parental leave Family and Medical Leave Act (FMLA) State laws: –Vermont –Connecticut –California Adopting more generous policies: industry specific

Parental Leave Laws: United States (cont.) Legislative trends and updates: –Paid leave for federal workers –Pending family legislation (Family Act) –State and local initiatives –Private initiatives

Parental Leave Laws: United Kingdom Parents employed for at least one year and have responsibility for a child can take up to 18 weeks of unpaid parental leave per child –Recently increased from 13 weeks –In addition to other maternity, paternity, and shared leave –Must be taken by child’s 5 th birthday (unless disabled) –Max 4 weeks of leave per year –21 day’s notice required

Parental Leave Laws: United Kingdom (cont.) Maternity leave –Mothers are generally entitled to 52 weeks of statutory leave –39 weeks of statutory maternity pay –Mothers required to take 2 weeks of compulsory maternity leave Paternity Leave Shared Leave - optional –Effective April 2015 –Couples can share maternity leave and pay –Possibility of discontinuous leave

Parental Leave Laws: Italy Compulsory Maternity Leave: –2 months prior, 3 months after birth –Dr. can authorize 1 month prior, 4 months after birth –80% of salary (from Social Security) During pregnancy and 7 months following birth: employee must not be allocated tasks that could endanger health If Mother does not take maternity leave, Father can take 3 months following birth or adoption

Parental Leave Laws: Italy (cont.) Additional leave after birth: –Up to 6 months (overall combined limit of 10 months) –30% of salary during this time –2 year extraordinary leave (monthly salary up to fixed amount set by government)

Parental Leave Laws: Brazil Maternity Leave: –120 days –Paid in part by company and Social Security Paternity Leave: –5 days Trends and pending legislation: –CBAs –Recent Court Rulings: paternity leave up to 120 days.

Parental Leave Laws: China Maternity Leave –Female employees are entitled to maternity leave of 98 days, of which 15 days are pre-natal leave. –Additional maternity leave may be available in certain circumstances (difficult childbirth, multiple births, or where the individual is over a certain age – based on local law). Paternity Leave –Varies based on local laws Caregivers – Company discretion

Parental Leave Laws: China Payment – –Depends on whether the employer has paid insurance premiums to equivalent of social security for maternity leave. –If premiums paid, payment will be made from the equivalent of social security.

Poll Question Which statement best describes your company’s international operations: –We are an international company. –We operate domestically.

Multinational Compliance Understanding local laws and legislative developments Understanding industry and trends Maintaining competitiveness Use of local counsel

Planning Considerations: Global Policies Adopting uniform or localized global parental leave policies –Uniform policies Balance cost with simplified administration and employee expectations –Think regionally: E.g., European Parental Leave Policy, N. America Parental Leave Policy to simplify administration and reduce costs –Use of local counsel

Planning Considerations: Secondments When sending employees abroad, need to consider: –How will the secondment or transfer be structured? –Which jurisdiction's parental leave laws apply –Employee expectations: moving between jurisdictions –If home country parental leave policies apply, consider local discrimination and employee morale issues.

Questions? Scott V. Wagner, Jr Tiffany D. Downs

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