Mothers' jobs could be kept open for a YEAR of maternity leave in new Government proposals

Ministers are considering forcing firms to keep the jobs of women on maternity leave open for a year.

The proposal was drawn up at last month's National Policy Forum in response to union demands that there be 'no detriment for mothers coming back to work'.

Extended leave: More time at home with the baby

But business leaders warned the change to parental leave would make it harder for them to compete at a time when they are struggling with an economic downturn.

The law currently forces firms to hold a woman's job open for up to six months maternity leave.

After that if it is not 'reasonably practicable' to keep the post open they can offer a 'suitable alternative'.

Labour Deputy Leader Harriet Harman is thought to be one of the senior ministers championing the plan to extend this period to 12 months.

But Chancellor Alistair Darling is said to believe the demands will place too great a pressure on firms.

Business Secretary John Hutton is also cautious about the plan.

'This is one element in discussions on how we make sure maternity leave is not detrimental to women returning to work,' a Government insider said.

David Frost, director general of the British Chambers of Commerce, said the extension would be hard to bear on top of another Labour deal giving new rights to agency workers and temps.

'This is a further erosion of flexibility in the labour market, which is bad news for our members in the current economic climate,' he said.

'For small firms in particular, keeping an employee's post open for this period of time is simply not possible and is only likely to get harder when the agency workers directive is implemented.

'Ministers and the unions need to realise that most firms want to be accommodating, but there are some things that they just won't be able to do.'

Chancellor Alistair Darling is said to be wary of plans to extend maternity leave

Labour Deputy Leader Harriet Harman is all for plans to prolong leave for mothers

Labour is already extending the period of paid maternity leave to a year from 2010.

Mothers will have to take the first six months themselves, but will be allowed to transfer the second half of their leave to the child's father if they wish.

Stephen Alambritis, of the Federation of Small Businesses, said: 'The unions are pushing things too far  -  there needs to be a reality check.

'Six months is already a long time to keep a job open  -  12 would be too much for many small firms.'

The Tories claim the unions are taking advantage of Labour financial dependence on them to wring out policy concessions.

In the past year alone, they donated more than £10million to the debt-ridden party, saving it from bankruptcy.

The unions were delighted when the Government signed up the EU deal earlier this year that gave 1.3million temps the salaries, holidays, overtime and rest periods of full-time colleagues after just 12 weeks in a job.

But Downing Street strongly rejects the idea that it is 'caving in' to union demands.

At last month's talks ministers dismissed union demands to repeal the ban on secondary picketing, to reopen public sector pay deals and to raise taxes for those earning more than £40,000.

Tory leader David Cameron has said his party was wrong in the past to oppose extensions to parental leave because of concerns about the impact on firms, and if elected, the Conservatives will offer mothers and fathers the chance to take the first six months of their child's life off work together.