Microsoft will require suppliers to provide paid parental leave to their employees

Over the next 12 months, Microsoft will be working with its suppliers to implement the new policy, which offers a minimum of 12 weeks of paid parental leave to employees and up to $1,000 per week.

In 2015, Microsoft announced its plan to require suppliers that do business with it in the U.S. to provide at least 15 days of paid leave each year to their employees. Off the back of that effort, Microsoft is now taking a step further to add another benefit to its contractors' employees: paid parental leave.

Dev Stahlkopf, Corporate Vice President and General Counsel of Microsoft, announced in a blog post that over the next 12 months the company will implement a new policy requiring its suppliers to offer their workers paid parental leave for a minimum of 12 weeks, amounting up to $1,000 per week. He added:

We have long recognized that the health, well-being and diversity of our employees helps Microsoft succeed. That’s why we provide industry-leading benefits for our employees, including comprehensive health and wellness programs for families, paid vacation, paid sick leave and paid time off for new parents.

The new package will apply to parents who handle work for Microsoft and need to take leave for the birth or adoption of a child. Contractors with more than 50 employees will be required to implement the paid parental leave policy.

Microsoft says the new change is inspired by the new family leave legislation passed in the state of Washington last year and set to take effect in 2020. The company will work with its suppliers over the next couple of months to further discuss the impact of this new requirement.