by Fabian Luetz, Legal Officer, Gender Equality Unit, DG JUST, European Commission[1]

 
The Work-Life Balance Directive – taking into account the needs of both employers and workers

The Directive on work-life balance sets a number of new or higher standards for parental, paternity and carer's leave, and the right to request flexible working arrangements[2]. It takes account of the needs of small and medium-sized companies and makes sure that they are not disproportionately affected. It also strikes a fair balance between the needs of employees and employers when it comes to the rights granted to workers under this Directive. As a matter of illustration, to enable planning on the company side, the Directive foresees a period of notice to be given by workers for their employers when exercising the right to parental leave. Furthermore, the Directive allows, under specific circumstances, that employers may be allowed to postpone the granting of parental leave by a reasonable period of time on the grounds that it would desirously disrupt the good functioning of the establishment. Similar rules exist for the right to request flexible working arrangements, where employers can refuse or postpone such a request while justifying their decision to the worker. On the other hand, as problems in relation to dismissal and discrimination prevail throughout Europe[3], workers are protected against dismissal on the grounds that they have applied for or have taken leave granted under the Directive, in order to guarantee effective use of the rights and to prevent that workers are afraid to make use of them.

Gender Equality – Fundamental principle in the European Union since 1957

Gender equality has been enshrined in the European Treaties since 1957 as a fundamental principle of EU law with the principle of equal pay between women and men. Gender equality law is one of the pillars of European Social law[4]. Despite steady progress, as shown by recent reports[5], there are still many outstanding challenges to achieve full gender equality. Women are increasingly well qualified and more women than men graduate from universities in Europe but many disappear from the labour market due to their responsibilities as mothers or as carers of family relatives. Existing policies have not brought equal opportunities that allow fathers and mothers to work and care together for the welfare of children and society at large. In terms of lost opportunities, the underrepresentation of women in the labour market represents an economic loss that amounts to €370 billion per year[6]. It is therefore important for companies to provide for good work-life balance solutions for its employees[7].

The European Commission has consequently decided to take a broad approach in addressing women's underrepresentation in the labour market. To address the challenges that working parents and carers face in reconciling work and family responsibilities, the Commission proposed the 'Work-life balance' Initiative[8] in April 2017, consisting of a Directive and a Communication[9]. This initiative is a key deliverable of the European Pillar of Social Rights.

Benefits of the Work-Life Balance Directive

Business models are changing, opening up opportunities and new routes into work. Many sectors are undergoing rapid change and offer new opportunities, with increased possibilities for self-employment and new types of activities, leaving behind the traditional working models. This creates chances, but at the same time they may also increase precarious part-time work, casual work and blur the boundaries between work and personal life[10]. The context of the Directive and the Communication is a situation in which the digital transformation of the economy is reshaping the way people work and do business, creating new opportunities for remote work, increased autonomy and flexible schedules, which can be used better to reconcile work and family commitments.

This initiative and the rules enshrined in the Directive will benefit not only individuals but also companies and the wider society. Parents and carers will profit from a better work-life balance. Moreover, the foreseen increase in women’s employment, their higher earnings and career progression will positively affect their and their families' economic prosperity, social inclusion and health. Companies will benefit from a wider talent pool and a more motivated and productive labour force, as well as from less absenteeism. The rise in women’s employment will also contribute to addressing the challenge of demographic ageing and ensuring Member States' financial stability.

The new and improved rights for parents and carers: paternity, parental and carers’ leave as well as flexible working arrangements

The new work-life balance Directive contains rules that are fit for purpose in the 21st century. They will open up opportunities for working women and men to share caring responsibilities, for children and relatives, on an equal basis. The Directive sets for the first time a European minimum standard of 10 days of paternity leave[11] reserved for fathers following the birth of their child, to be compensated at the level of sick pay. It strengthens the existing right to 4 months of parental leave[12], by making 2 months non-transferable between parents and introducing compensation for these 2 months at an adequate level to be determined by the Member States. For the first time, there will be at EU level provisions for carer's leave[13] by attributing 5 days per worker per year, as a new European entitlement for workers. The new rules strengthen the right for all parents and carers to request flexible working arrangements[14].

But this is not only about strengthening the rights of individuals. The new rules are a model for how to align social and economic priorities. Businesses will be able to attract and retain talented women and men. The European economy will gain from this proposal, which will contribute to closing the gender employment gap. Better work-life balance for both women and men is not only the fair, but also the smart thing to do.

The new Directive is complemented by a Communication with policy and funding measures, supporting EU countries in enforcing existing dismissal protection legislation, developing formal care services and addressing economic disincentives for second earners to work.

How can Diversity Charters across the EU help your company in the field of Work-Life Balance ? They can provide knowledge and know-how and be a useful guide for companies who want to engage in increasing the Work-Life Balance of their employees, through measures such as disseminating guides and expertise inspired by existing best practices.