ONE in four companies see maternity and paternity regulation as a business risk, research has shown.

And in the North-East, 27 per cent of companies saw maternity leave as a threat to their business, the study by Axa Insurance revealed.

Smaller businesses are the most worried about people taking time off for paternity or maternity leave, with 28 per cent of small companies saying it was a business risk, compared to 15 per cent of medium-sized businesses.

Proposals made to the Government in May, which are likely to form the basis of a new Parental Rights Bill, recommend extending paid maternity leave from the current six months to nine and then 12. Mothers would also be able to transfer some of their leave to their partners.