Microsoft will require all its suppliers in the United States to offer their employees paid childcare leave and intends to complete the transition to a new format of work during the year, according to an August 30 press release.
The policy means that thousands of people will be able to get such a paid leave, since Microsoft has more than 1,000 partners in the US. Some states, e.g. California already have laws providing for compulsory paid parental leave. The state of Washington, where Microsoft headquarters is located, also introduced compulsory paid leave to take care of children in 2017. The initiative will come into force in 2020.
“We have long recognized that the health, well-being and diversity of our employees helps Microsoft succeed. That’s why we provide industry-leading benefits for our employees, including comprehensive health and wellness programs for families, paid vacation, paid sick leave and paid time off for new parents,” Dev Stahlkopf, Corporate Vice President and General Counsel said in the letter.
The letter notes that over the next 12 months, the company will work with its US suppliers to implement the new policy. According to the plan, Microsoft vendors will offer employees a childcare leave of at least 12 weeks. The novelty will affect both families that gave birth to children or adopted them. Payment is expected to be up to $ 1000 per week. The new policy will be applied in companies with more than 50 employees.
According to the Family Medical Leave Act, one parent in American families is granted a 12-week unpaid leave to care for the newborn. This applies to companies employing more than 50 people.