Small businesses see maternity as a business risk due to the legal costs implied if the company does not keep to new rules.

Research from AXA found that 28 per cent of small companies with 20 or fewer employees said that it maternity posed a risk to their business, and that seven per cent of all businesses see it as a serious threat.

Currently, all pregnant employees are entitled to six months of leave, and women retain the right to return after the leave is complete.

Carol Anne Stewart, risk control training manager at AXA said: "Employers need to make sure that they not only cover staff on maternity or paternity leave, but also that they are aware of their legal rights and that they respect these.

"If they don't, they could find themselves facing legal action. Some £6.2 million was awarded in employment tribunals last year, compared to £4.3 million in 2003."

The research comes as the Equal Opportunity Commission is expected to recommend that men can receive the same amount of time off during childbirth as women, the Sunday Times reported.

It is expected that the commission will request the weekly payment during maternity and paternity leave be raised to £200.

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