Standard Life Aberdeen is to offer every new parent 40 weeks leave on full pay, regardless of gender, whether the baby was adopted or born via a surrogate.
The new policy means the primary caregiver does not have to share their entitlement and end their parental leave early.
All new parents are eligible, regardless of family set-up or how long they have been at the company.
If a baby is born premature, the policy also offers additional leave to cover the period between birth and 37 weeks, to support parents in what can be challenging circumstances.
Parents can take the full 12 months off together or in up to three separate blocks over two years, in a way that suits them, their family and career. The policy aims to ensure that becoming a parent does not limit anyone’s career potential.
Rose Thomson, chief HR officer, said: “Current arrangements – whether statutory or enhanced – can mean new parents have to make difficult decisions about who can afford to take leave and whether one parent’s time with the child, takes away from the other. We think that needs to change.
“We are a family friendly employer and our new policy represents a potentially life changing opportunity for new parents – whatever their family circumstances. We know that our people need to balance their work lives with their personal lives and this new policy is one example of the actions we’re taking to help them maintain that balance.”