Money transfer firm Wise is facing significant internal backlash after cutting paid paternity leave for fathers and secondary caregivers earlier this month.
The UK fintech reduced its paid paternity leave from 18 weeks to eight, a decision that has prompted fierce criticism from staff, known internally as Wisers.
The timing has proven particularly sensitive given that Wise co-founder and chief executive Kristo Kaarmann took a three-month sabbatical in 2023 to spend time with his newborn child.
Kaarmann had said at the time: “I feel lucky to have this opportunity – and this is thanks to my team, who have worked alongside me for a long time.”
Internal messages seen by City AM show employees expressing deep frustration with the decision and the reasoning offered by the company to justify it.
One employee blasted Wise for prioritising the financial position of the company “over the wellbeing of their employees and family,” adding: “It’s very disappointing.”
A second employee pushed back on Wise’s framing of the policy as a market-aligned move, writing: “Wise was better than the market, it should be the market that changes, not Wise getting worse.”
A third member of staff raised concerns about the short notice given to employees, saying: “Ignoring the change itself, giving less than nine months notice is certainly a choice given the context… feel for anyone in the first trimester who had plans.”
A source close to the company noted that eight weeks of paid paternity leave still exceeds the UK statutory requirement by six weeks, and that the firm had also expanded eligibility to employees who have been at the company for six months, down from the previous threshold of one year.
Under UK law, eligible employees are entitled to up to two weeks of statutory paternity leave, which must be taken in blocks of one week at a time and completed within 52 weeks of the birth.
The internal dispute arrives at a difficult moment for Wise, which is simultaneously contending with an external legal challenge after prosecutors in Belgium opened an investigation into the firm over allegations its accounts had been used for criminal activity.
Transactions within the scope of that investigation are said to amount to roughly 500 million euros, equivalent to around 432 million pounds, and the news sent the company’s shares sharply lower.
Wise shares are currently down nearly seven per cent for the year-to-date, trading at 812.00 pence, adding further pressure on the business as it attempts to manage both its legal exposure and a restless workforce.