'Having a family comes with a financial penalty'

A mother on the Isle of Man says a loophole in employment law means the global company she works for does not have to provide any maternity pay, leaving her to rely solely on government support while expecting her second child.

The woman, who asked to remain anonymous, said she was "really disappointed" when she discovered her employer would not offer any maternity pay, even though it provides for staff in other countries.

Under current law, employers on the Isle of Man are not required to provide maternity pay. Instead, eligible parents can claim a government-funded maternity allowance.

"I realised that my employer, and many others on the island, do not value women in the workplace," she said.

"If they did, they would invest in their futures and make sure they feel financially secure," she added.

In contrast to the UK, employers on the island are not required to pay statutory maternity pay, though they can do so voluntarily.

The Isle of Man Treasury said the island provided a maternity allowance, covering up to 52 weeks of financial support, capped at £250 per week for up to 39 weeks.

The Treasury said there are no plans to make employer-paid maternity pay mandatory, and that the current system via social security was "right" for the island.

The Manx state benefit is more generous than the UK, where new mothers receive 90% of earnings for the first six weeks, then £187 a week for the remaining 33 weeks.

But the higher allowance did not make up for the lack of employer-paid maternity leave, said the mother-to-be.

She argued the situation put additional pressure on women: "You have to choose between a career and children in some situations."

The woman said international companies should offer the same maternity packages, regardless of where staff are based and called for the government to "means-test certain companies".

A global firm "should have to adhere to the global standards of their maternity packages across all their jurisdictions", she said.

"It just seems disgraceful - they're opting out because they can."

"This is about fairness," she said.

"Right now, having a family comes with a financial penalty and that shouldn't be the case."

"I want women coming up through the workplace to have a fair chance in their career, and a fair chance at being able to afford to have a baby."

Douglas East MHK Joney Faragher, who raised the issue in a written question to Tynwald last November, said: "There are some big companies who are choosing to opt out of it [maternity pay], who will provide that in various other jurisdictions in which they operate - and that doesn't feel right."

She said the lack of any maternity package had an impact on the family as a whole.

"Your household income will be taking that hit. This isn't just a women's issue - this is for every single person who wants to start a family to think about," she said.

Faragher emphasised the need for legislation to "force companies to do the right thing", suggesting it would also make the Isle of Man a more attractive location for potential families.

She said: "If you have a big company that operates in the UK, or operates a branch over here, and you're making the choice as to which one you might go for - that could be a deciding factor for families."

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