'Challenge the stigma' | Goldman Sachs £1.45m payout sends warning over parental leave policies

Businesses have been urged to examine whether their workplace culture matches the family-friendly policies used to attract and retain employees, after a former Goldman Sachs executive received £1.45m over his dismissal while on parental leave.

Kim Wright, Legal Director in the employment team at Birketts LLP, said the judgment should serve as a warning that tribunals will scrutinise how parental leave policies operate in practice, rather than simply looking at the benefits promised on paper.

“This is an important judgment because it highlights a problem that many women have faced for years. Shared parental leave was introduced to help tackle inequality in the workplace and encourage a more equal sharing of caring responsibilities,” she said.

“That can only happen if employees feel able to take the leave without damaging their career prospects. If employees are penalised for taking parental leave, the burden of childcare will continue to fall disproportionately on women, with obvious consequences for career progression and the gender pay gap.”