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Canadian Employers’ Reaction and Policy Adaptation to the Extended, 61-Week Parental Leave

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Abstract

The Canadian parental leave policy has evolved over the last 50 years to provide more flexibility and meet the changing needs of families. In December of 2017, the federal government announced an extension of parental leave from a maximum length of 35 to 61 weeks. However, the Employment Insurance (EI) total payment will remain the same, just spread over 61 weeks. Structured interviews with 46 Canadian employers were conducted to understand their perception of the parental leave extension, its impact on their employees and their organization, and to clarify how they have adapted their internal policies to the new legislation. Employers reported low employee uptake of the 61-week parental leave option, citing the affordability of lower EI payments over the longer leave. Employers expressed concerns related to backfilling, employees reintegrating after long absences, and the potential extra costs associated with top-ups and benefit-cost sharing. Only a few employers recognized the strategic importance of offering supplemental programs for recruitment, retention, and satisfaction of employees.

Résumé

La politique canadienne en matière de congé parental a évolué au cours des 50 dernières années pour offrir plus de flexibilité et répondre aux besoins changeants des familles. En décembre 2017, le gouvernement fédéral a annoncé une prolongation du congé parental d'une durée maximale de 35 à 61 semaines. Cependant, le paiement total de l'assurance-emploi (AE) demeurera le même, s'étalant sur 61 semaines. Des entrevues structurées avec 46 employeurs canadiens ont été menées pour comprendre leur perception de la prolongation du congé parental, son impact sur leurs employés et leur organisation, et pour clarifier comment ils ont adapté leurs politiques internes à la nouvelle législation. Les employeurs ont signalé une faible adoption par les employés de l'option de congé parental de 61 semaines, invoquant les paiements d'assurance-emploi plus bas pendant les congés plus longs. Les employeurs ont exprimé des préoccupations concernant le remblayage, la réintégration des employés après de longues absences et les coûts supplémentaires potentiels associés aux compléments et au partage des avantages et des coûts. Seuls quelques employeurs ont reconnu l'importance stratégique d'offrir des programmes supplémentaires de recrutement, de rétention et de satisfaction des employés.

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Notes

  1. It should be noted that Quebec established its own parental leave program in 2006, the Quebec Parental Insurance Policy (QPIP), which offers different benefits than the rest of Canada including non-transferable leaves for fathers, broader qualifying criteria, and higher wage replacement while on leave (Harvey and Tremblay 2018).

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Correspondence to Rachael N. Pettigrew.

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This study was approved by the Human Research Ethics Board.

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The authors declare that they have no conflict of interest.

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Pettigrew, R.N. Canadian Employers’ Reaction and Policy Adaptation to the Extended, 61-Week Parental Leave. Can. Stud. Popul. 47, 97–109 (2020). https://doi.org/10.1007/s42650-020-00030-y

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  • DOI: https://doi.org/10.1007/s42650-020-00030-y

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