New Hong Kong laws push firms to review paternity pay policies
Law firms in Hong Kong are facing an overhaul of their paternity leave policies following a move to force all private companies in the region to provide employees with at least three days' paid leave. The government proposals, endorsed by the Hong Kong Labour Advisory Board last month, will see men paid at least 80% of their salaries for the paternity leave period.
December 13, 2012 at 07:03 PM
4 minute read
Bakers, Shearman and Clydes among firms set to overhaul rules
Law firms in Hong Kong are facing an overhaul of their paternity leave policies following a move to force all private companies in the region to provide employees with at least three days' paid leave.
The government proposals, endorsed by the Hong Kong Labour Advisory Board last month, will see men paid at least 80% of their salaries for the paternity leave period.
At present, there is no statutory requirement for private companies to provide any paternity leave.
Baker & McKenzie, Simpson Thacher & Bartlett and Shearman & Sterling are among the firms that will have to change their policies to bring them in line with the new rules, as well as UK firms Bird & Bird and Clyde & Co.
Bakers and Clydes do not currently offer any paternity leave to new fathers in Hong Kong, but confirmed they will update their policies.
Simpson Thacher and Shearman, meanwhile, will be required to extend their paternity leave policies to cover support staff as well as lawyers. Lawyers at both firms are entitled to four weeks' paid paternity leave, but most support staff receive nothing, though those holding managerial level roles at Simpson Thacher are entitled to five days.
Bird & Bird already offers five days' paternity leave at full pay to both support staff and associates, but may have to amend its rules to remove the current requirement for partner approval.
Paul Tan, managing partner of Bakers' Hong Kong, China and Vietnam offices, said: "We will look at what the new law says and revise our policy accordingly so that not only is it in line with the new rule, but also adequately addresses the needs of our staff. We believe an employee who feels supported and valued will be more productive and empowered."
The draft legislation still has no timeframe for introduction, and according to local media some details still need to be finalised, including arrangements for unmarried fathers and those whose babies are born overseas.
Currently, new mothers are eligible for 10 weeks' maternity pay at 80% of their salary, while civil servants have been entitled to five days' paternity leave at full pay since April.
Maternity and paternity policies around the world have been in the spotlight in recent years, in part due to increased efforts to bolster the number of women holding senior positions. In the UK, men and women are set to be allowed to share up to one year's leave between them.
Leave and other benefits offered by international law firms in Asia can be less generous than those provided in Western countries, with firms focusing more on salaries than benefits.
However, research by Legal Week shows many firms already meet or exceed the incoming Hong Kong requirements.
Allen & Overy, Herbert Smith Freehills, Pinsent Masons and Simmons & Simmons all offer legal and non-legal staff five days on full pay. Freshfields Bruckhaus Deringer provides five days for legal staff but fewer for support workers. Ashurst provides two weeks' paid leave while Hogan Lovells offers one or two weeks depending on length of employment. Norton Rose and Eversheds each offer three days on full pay for all lawyers and support staff.
Many US firms offer better paternity packages for lawyers than UK firms, but do not always cater for back office staff. Davis Polk & Wardwell, Skadden Arps Slate Meagher & Flom and Latham & Watkins all provide four weeks' paid leave for lawyers, while Cleary Gottlieb Steen & Hamilton offers five. None of these firms confirmed allowances for other staff.
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