Microsoft requiring partners to offer paid parental leave

The new measure expands the scope of support for new parents

BY Rachel Ranosa 03 Sep 2018

Microsoft has announced that it will start requiring US business partners and suppliers to offer paid family leave to their employees starting next year.

In a blog post, the US tech company said the new policy is meant to provide a minimum of 12 weeks of paid parental leave at up to $1,000 per week. This expands the company’s scope of support for new parents.

Microsoft, however, specified that the requirement applies only to partners and suppliers with more than 50 employees and employees “who perform substantial work" for the company, including IT support staff, engineering consultants, janitors and cafeteria workers. Also, it does not cover contracted or subcontracted employees based outside the US.

“We have long recognized that the health, well-being, and diversity of our employees helps Microsoft succeed,” said Dev Stahlkopf, general counsel for Microsoft.

“We also know that we rely on a wide array of other companies to supply us with goods and services that reflect their core competencies, and that the people who work for our suppliers also are critical to our success,” Stahlkopf said.

Despite recognizing that the new policy may result in increased costs, Microsoft said it will assist its business partners in complying with the requirement.

The tech company was prompted to introduce the policy after the state passed legislation requiring companies to provide paid parental leave to their employees and contractors. The new law will come into effect in 2020.

In 2015, Microsoft introduced a similar initiative that would require its suppliers to offer paid time off to their employees.