Small companies are being put off employing mothers because they fail to understand the law surrounding family-friendly regulations and fear they could end up in front of an employment tribunal, according to the Forum of Private Businesses.

Following on from the government’s equality review which concluded that a woman with a child under the age of 11 was 45% more likely to be discriminated against than a man, the organisation claimed the government’s drive to improve employee rights had backfired.

It highlighted the extension of maternity leave to 52 weeks as an example of the type of policy that could turn many small firms against employing women of child-bearing age or those who already have children.

Employers fear they will be unable to find suitable cover and productivity and profitability will fall as the responsibilities of missing employees are shared out among the rest of the workforce

“Small businesses are worried about the cost of covering the duties of new mothers,” said Victoria Carson, the FPB’s campaigns manager. “Employers fear, particularly in the case of skilled workers, that they will be unable to find suitable cover and productivity and profitability will fall as the responsibilities of missing employees are shared out among the rest of the workforce.”

'The administrative burden and cost of employing mothers of young children is becoming a disincentive to employers to take them on,” added Carson. “The increasing drive from government to encourage greater flexibility in the workplace is leading to the breakdown of existing flexible relationships and increasing worries about tribunals and costs.”

The CIPD, meanwhile, warned that the challenge for the government was to get small businesses to see the business case for employing mothers and future mothers – such as being able to attract and retain talented staff by implementing flexible working policies – rather than just forcing them to comply with the law.

“The crucial driver of change is to consistently and effectively make the business case for action,” said Dianah Wormah, CIPD diversity adviser. “In reality there is growing evidence that a positive approach to diversity can bring the kinds of business benefits. We need to communicate these important messages and guidance about how to make progress.”