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Chamber: Challenges for firms by increasing maternity leave, introducing paternity leave

  • BCCEC
  • 6 hours ago
  • 2 min read

Published by Youri Kemp, May 26, 2025




The Bahamas Chamber of Commerce and Employers’ Confederation (BCCEC) is warning that while increased maternity leave and the introduction of paternity leave offer numerous benefits, they will also generate a number of challenges for businesses.


Dr Leo Rolle, executive director of the BCCEC, said in a statement to Guardian Business yesterday that the Chamber recognizes the importance of enhanced employee leave policies, including increased maternity leave, and the introduction of paternity, adoption, and mental health leave, as vital components of a progressive and inclusive labor framework.


“While these initiatives offer numerous benefits, they also present certain challenges that most businesses will need to navigate thoughtfully. One measure of consideration is that businesses must already contend with the ever-increasing cost and paradoxical decline in the ease of doing business, while grappling with other ancillary detractors from its bottom line, such as the increased cost of goods and shipping.


“Given that our economy is built on micro, small, and medium enterprises (MSMEs), we caution the government on implementation of the same until proper feasibility studies have been done, and continued consultation with public and private stakeholders has occurred, to ensure that these new measures do not unduly burden the business community.”


Rolle added: “Some of these challenges include operational disruptions that impact business continuity, especially for small and medium-sized enterprises with limited staffing; financial implications through increased leave entitlements that could lead to higher costs related to temporary replacements, training, ongoing benefits for staff on leave, or overtime for remaining staff.


“Moreover, consideration must be given to policy implementation and management while balancing the business needs and that of employees without an excessive burden on employers, which may force them into the informal economy, trigger inflation, or ultimately lead to business closures.


“As the business community, we are also concerned about the impact to the NIB fund, which is already challenged. Additionally, we must consider that the employee will still be entitled to vacation, sick leave, personal obligation, emergency, bereavement, and other such leaves that already place a financial burden on the employer.”


Calls for an increase to maternity leave and the introduction of paternity leave started with the Bahamas National Breastfeeding Association (BNBA) in January, which got support from the Bahamas Christian Council, which acknowledged that fathers need time with newborns to create a stable environment for family development.


“We appreciate the bipartisan inclusive efforts of the Department of Labour and welcome continued collaboration to ensure that we arrive at conclusions that are mutually beneficial to the government, employers, and employees alike,” said Rolle.


“We also recommend phased implementation or subsidy programs to assist smaller businesses in managing increased leave obligations, with a robust monitoring and evaluation framework.


“Further, feasibility studies and public awareness/educational campaigns are imperative to ensure that our national insurance fund and business sector are not brought to its knees with the introduction of these new financial obligations, in the face of new proposed fiscal measures in the upcoming budget cycle.”





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