This topic is loaded for me. I have worked really hard over the last seven+ months to shift my perspective from bitter to grateful on this one… but there is still a part of me that sees a flaw in the system.
The topic? Maternity leave for small business owners in Canada.
I’ve been working as a consultant from home for seven years now, and the majority of that time has fallen into the self-employed window. There was a small pocket of two years where a project became so large I was actually employed through it, but when it came to an end I was left with a fork in the road. Would I look for a job or start my own consulting business? I actually applied for several perfect-for-me jobs, but in the end, felt like the consulting world chose me.
Working from home and being self-employed certainly has its many perks. I have a very flexible schedule, and while it’s kind of the perfect job to have with older children, I knew it would be challenging in the early years. I spent a lot of time soul searching before I decided to take a leap and start my business.
Now, many self-employed business owners do have access to the oh so lovely one year Canadian maternity leave… if they have a corporation and are employed through it, or decide to opt into Employment Insurance (EI)*. Without going into a big lesson on EI, as a self-employed business owner you don’t have to pay into EI like every employee does, because you can’t access the same typical benefits. This program is mostly used by those who get laid off seasonally or lose their jobs suddenly. It’s also the program that pays for maternity and parental leaves.
The issue is, when you decide to opt in to EI as a small business owner, you are opted in for the remainder of your career. And, unlike those who can leave their jobs for a year and return to the same position… after a year, I’m not sure if my business would still be there (or it would take a long time to rebuild). If I decided to work part-time I would have to pay back my benefits. So, in an ideal world I would likely take something like 8-12 weeks off, and then go back to work.
So, to opt into something like this, and only use a small number of the weeks available to me… it wouldn’t pay off. I read somewhere once that I would have to have three to four children to break even. Thanksbutnothanks.
I am disappointed that the system doesn’t offer support for self-employed women, and the realities that come with being a business owner. The option available to us doesn’t encourage, it deters.
So, where does that leave me and Mr. M?
Watching my friends around me enjoy a full year off with their children is reality I’ll never have. I did fall into a bit of a feel sorry for myself funk over this fact as we discussed starting a family, but eventually shook out of it, because we are so fortunate that my husband can take a parental leave.
Mr. M is an employee, and thus has the option to take a parental leave. Fathers/partners can only take up to 37 weeks of leave, as the beginning (or first 18 weeks) of the one year leave is called pregnancy leave. While, at this point we think he will likely only take six of the nine months, we will make an actual return to work date decision closer to the actual time.
Mr. M with his nephew – August 2014
While I will be able to take some personal (unpaid) time off when the baby comes, my goal is to return to work slowly as soon as I am ready. It will be a lot to manage and navigate through in the early days with breastfeeding, sleepless nights and recovery… but I know once we get over that initial hump, this scenario will be so worth it.
The opportunity for us to both be home in the first six months of our child’s life is priceless. Had I been able to take a leave, Mr. M wouldn’t have been able to, and so for that I’m grateful. I’m excited he gets the opportunity many fathers cannot take, and while I have to manage my work day, clients and projects with a newborn, he’ll be there to help make that happen.
In a culture where every mother seems to get a year off, I’ve gotten a few side-eyes over our situation; however, I know this is the option that will work the best for our family. I’m excited to be able to navigate and learn along side my husband as we transition into parenthood.
What does parental leave look like in your family and where you live?
*This varies by province.
blogger / honeydew / 7081 posts
Oooh, I didn’t really think about this! I’ve never been self-employed, so it didn’t cross my mind. It really is unfortunate that the system only seems to work for those employed by big(ger) corporations. Hope you find the perfect balance for your family!
pomegranate / 3521 posts
I was going through this exact same dilemma as a self employed/freelancer before getting pregnant. I ended up (timing was just right) landing one of very few staff/salary positions in my field (albeit for a pay cut) I plan on sticking around until I am done having children. The opt in for specialized benefits plan is such a load of crap. I agree, it’s a deterrent.
pomelo / 5573 posts
This worked great for my friends – she managed the family dry cleaning business, he was a military member, so she took about 8 weeks (found somebody to cover the business) and then he took the 9 months.
grape / 87 posts
With my first, I took 8 weeks of my vacation and sick time since I had no maternity leave and this time I’m freelancing as a consultant from home, so I don’t even have vacation and sick days. Sadly, the US is such a complete joke for maternity leave I’ve not even upset or surprised about it. My husband works and I’m glad to have his insurance. I’ll pick up some extra hours before the baby is born to make the income stretch and I’ll start working again after 2 or 3 months.
cantaloupe / 6730 posts
So, I’m a little confused. It sounds to me like you are benefiting from the EI system, since your husband is able to use it. And no matter what, you wouldn’t stay home a whole year because your business would suffer, so it doesn’t make sense to opt in. So, in your ideal world, would you be wanting a benefit paid out to families when a child is born that would equal 12 weeks EI pay? Maybe an increase to the Canada Child Benefit for 12 weeks? And then decrease EI contributions since income tax would increase?
One thing I do like about our mat leaves being tied to EI is that it’s funded by us and not funneled into anything else. Somehow feels more secure to me.
blogger / apricot / 389 posts
@Mrs. Oatmeal: Definitely an unfortunate side of being self-employed! I’m certainly glad my husband has the option to stay home!
@Reese: I definitely looked into this option, but living in a small town, there are very few opportunities available to me in my field. I think I would ideally love to find a part-time job that was in my field before we decide/if we decide to have a second child, that way I could meet the hours, and be able to have some support to take somewhat of a pregnancy leave.
@erinbaderin: So happy this worked out well for your friends!
@Megatherium: It definitely is a joke, and needs so much work! Canadians pride themselves in their system; but unfortunately there are holes and flaws (as in my case).
@Grace: I myself am not directly benefitting from EI. My husband is because he is an employee; but unfortunately, I have to take unpaid time off to be able to account for the time I need to recover, heal and adjust to motherhood. To be honest, I’m really not sure what the ideal world would look like on the other end of things… perhaps only having to opt into EI for a set number of years? Or being able to pay into a portion of it (since if say my business ran out of work, I couldn’t utilize EI for being ‘out of work’). I certainly don’t have the solution, but the system as it is set up now doesn’t really think of small business owners. I’m just thankful we’re in a position for my husband to take a leave (because if he was also self-employed, we’d be in a difficult place!).
nectarine / 2987 posts
My husband was back to work as soon as my labor was over with our first, and worked through his NICU stay and through his coming home without any time off. He took two unpaid days off with our second. And I have been a sahm/wahm for the last three years largely because the US has such a terrible leave system. I was saying to a friend the other day that I would have made different career path choices if I’d lived somewhere where a year was guaranteed, but I hadn’t thought about the people who slip through the cracks in the system. Thank you for the viewpoint.
grapefruit / 4089 posts
Thank you for this post! I’m self employed in Ontario (employee positions are very rare in my field), and trying to save up for any sort of mat leave is daunting, not to mention the fact that I will absolutely lose clients if I’m out of my clinic for too long. I see friends and family members enjoy a full year off and it definitely makes me a little sad… Sure, I have a fairly flexible schedule, but no paid vacation or sick days, no maternity benefits… If I’m not working I’m not earning money. There are definitely pros and cons to being self employed, and if I’m being honest I’m not sure it was the best decision at this point in my life. Live and learn I guess.
blogger / apricot / 389 posts
@MrsSRS: Oh my goodness, that’s really tough
I think there are just so many flaws in the systems (in many countries!) that just do not support new families. Everyone has their own set of challenges/realities!
@Synchronicity: Solidarity for sure. Is your husband able to take a leave? Choosing to have a baby felt irresponsible at times, but realistically things were never going to change on this front unless I landed a job and things are going well in my business! I didn’t want to put our family plans on hold… I don’t think there is ever a right time to have a baby, there could always be things you could get done first (or things that come up afterwards that you don’t have control over)! I hope that you’re able to make things work well for you and your family. You’re not alone in this journey, which I suppose in a misery loves company sort of sense is nice to know sometimes…
grapefruit / 4089 posts
@Mrs. Marshmallow: he could take leave, but he is the main breadwinner so I’m not sure how feasible it would be financially. We don’t want to put our family plans on hold any longer than we already feel we have, so it’s going to be a matter of sucking it up and going back early, working around his schedule as much as possible (childcare is not readily available for kids under 12 months here! Another struggle to deal with). Thank you for your kind words – solidarity helps!
blogger / apricot / 389 posts
@Synchronicity: I hear you there… we’re still struggling to figure out daycare as well. I thought I had one lined up, but every time I ask her for information (pricing… anything!) she never responds to me! So I’m back to the beginning here too, because I don’t want to send my child somewhere where I’m never going to hear from the provider. At what age do you need daycare?
grapefruit / 4089 posts
@Mrs. Marshmallow: Ugh that’s rough. Communication is so important when it’s someone you’re trusting to look after your kid! I have no idea when we would need it. I’d love to get though the first six months using just us and (very willing) family, but we live an hour away from everyone unfortunately. I’m not even pregnant yet so this is all just me stressing in advance right now
clementine / 990 posts
This is exactly what happened to me too! It’s so frustrating to pay into EI for 10 years, never use it, then go off as a subcontractor for a year or two and have a baby and not get maternity leave! I was so mad! And I didn’t figure it out until well into my pregnancy.
I was able to save enough money to fund unpaid time off and pick up a few little jobs here and there once my LO was born. Then I was fortunate enough to find an opportunity when my LO was about 6 months that paid more than my husband’s job. So I took it and went back to work when my LO was 7 months and my husband took the rest of the time. Which ended up being amazing for all of us.
pomelo / 5621 posts
As much as it sucks that you don’t get any maternity leave, I think it is amazing that your husband has the opportunity to use it. It will be so great for your little family.
I took the full year. I would have loved if DH could have taken the last 2-3 months but he is self employed so you know how that goes.
blogger / apricot / 389 posts
@Synchronicity: I found myself MORE worried about it pre-pregnancy because I felt I needed a plan, and it just never felt fair or right… but once it became our reality, it just felt like it was the way it was, and we would make it work and finding the right perspective to focus on really really helped (the blessing of my husband staying home, and all of us together)
@JennyD: Yes, SO frustrating I paid into it for so long… can’t I use that? haha! I’m so glad it worked out for your family in the end! I’m trusting the same will happen for us
@ALV91711: It’s so true, and it’s really how I was able to accept the sucky side to this. It still makes me angry when I think about it (I feel a bit like the forgotten Canadian when people rave about our maternity leaves :wink:), I’m able to refocus and really feel mostly gratitude that I get to have my husband home… he’s going to be such a great father!
guest
I’m American, but I just wanted to offer you some encouragement as with my first child I only had four weeks off of work, and with my second child (due at the end of the month) I will only be taking six weeks off!
As I did last time, I will be easing back in to work, doing some stuff at home via phone/text/email, starting with a few hours a week and working back up to my usual twenty, and bringing the baby in to the office for the first few months.
It’s hard, but you can do it! Having a great support system is essential, but it sounds like you have that. I also had no complications with delivery or breastfeeding, and though you can’t really control that, that’s pretty important, too.
blogger / cherry / 142 posts
I just drafted a post on self-employed maternity leave! I farmed out my job to someone while I took two weeks off when Little CC was born. (Spoiler alert: 2 weeks isn’t enough time!) I’m trying to plan better this time, so we’ll see what happens.