Employers and female employees should work together to make maternity leave more manageable for both parties, the Equal Opportunities Commission (EOC) has argued.

Following consultations with major business bodies, including the British Chambers of Commerce (BCC) and the Federation of Small Businesses, the EOC believes a lack of early dialogue between employers and employees over maternity leave can lead to problems such as job uncertainty and unnecessary business costs.

Speaking at a conference held by the Confederation of British Industry (CBI), the EOC called for a ‘green light’ for women to indicate their return dates much earlier during their maternity leave.

The move comes after Trade and Industry Secretary, Patricia Hewitt, proposed last month to extend the period of maternity leave afforded to expectant mothers.

Findings from the consultation show that maternity leave can cost some small businesses up to £7500.

Although employers can claim back maternity pay from the government, additional costs come from loss of skills and experience as well as a drop in management and administrative time, with only 47 per cent of women returning to work for the same employer.

Research by the EOC also reveals that one in five women face dismissal or financial loss as a result of their pregnancy.

The investigation found that while most employers were aware of laws governing maternity leave, many were unaware of their responsibilities.

Among a range of proposals from the EOC are written statements for all pregnant employees, outlining their rights and responsibilities as well as  better childcare provision.

Julie Mellor, chair of the EOC, said: “Employers need to be able to plan ahead. One of the biggest problems they face over pregnancy issues is the uncertainty of whether and when a woman intends to return to work after maternity leave.

“Flexibility at work cuts both ways. It is essential that there is more support for women with children to continue their careers But we also want to see a ‘green light’ that allows employers to contact women during their maternity leave to discuss return plans.

“In the interests of women who want to return to work and employers themselves it is vital to have meaningful dialogue much earlier.”