One of your employees might inevitably have a baby or adopt a child. Since young children need their parent’s attention and care, it can be a struggle for a parent to work and take care of their child. Therefore, they will need to take parental leave. As an employer, you must be aware of your legal obligations. Therefore, this article will explain what parental leave is and whether you can refuse a parental leave request.
What is Parental Leave?
The Fair Work Act 2009 (the Act) provides for unpaid parental leave and other related entitlements. Parental leave is leave awarded after an:
- employee gives birth;
- employee’s spouse or de facto partner gives birth; or
- employee adopts a child under 16 years of age.
Who is Entitled to Parental Leave?
Employees other than casuals are entitled to parental leave once they have completed at least 12 months of continuous service with the employer immediately. To gain parental leave entitlements, the 12 month period of continuous service must precede the expected date of birth of the child or, in the case of adoption, the anticipated date of placement of the child.
Nevertheless, casual employees are entitled to parental leave if they have:
- completed at least 12 months of continuous service with their employer; and
- a reasonable expectation of continuing work with the employer on a regular and systematic basis had it not been for the birth or adoption of a child.
How Much Leave Are Employees Entitled To?
An employee who is eligible for parental leave gains 12 months of unpaid parental leave, with the ability to request a further 12 months in some circumstances. However, if both parents work for you, they can take up to 24 months’ leave between them.
Can I Refuse To Grant Parental Leave?
By law, you must give entitled employees 12 months of unpaid parental leave. However, if an employee wants to extend their leave, you may refuse the request if you:
- give the employee a reasonable opportunity to discuss the request;
- base your decision on a reasonable business ground; and
- make your reason clear in writing.
Factors that could constitute ‘reasonable business grounds’ include the:
- impact on the workplace’s finances, productivity, efficiency, productivity and customer service;
- inability to manage the workload among existing staff; and
- failure to recruit a replacement employee.
What Are the Benefits of Granting Employer-Funded Parental Leave?
It is worth granting employer-funded parental leave if your business can afford it. Currently, three out of give employers give their employees paid parental leave. Nevertheless, the duration and pay associated with your leave policy is up to your own discretion.
The benefits of paid parental leave include:
- fostering a greater workplace culture;
- boosting employee morale; and
- supporting the mental health of both parents and children.
Ultimately, w work environment that supports employees and makes them feel valuable is integral when recruiting new employees and retaining old employees. In addition, these policies demonstrate the importance of family and work-life balance. Thus, it allows for an equal division of labour in the household whilst supporting parents in a financially taxing time of their lives.
As an employer, understand your essential employment obligations with this free LegalVision factsheet.
Key Takeaways
All employers must give their employees up to 12 months of unpaid parental leave. However, it is possible to refuse parental leave if the employee requests an additional extension of their leave. However, you can only refuse your employee’s request if you:
- give the employee a reasonable opportunity to discuss the request;
- base your decision on a reasonable business ground; and
- communicate this decision to your employee in writing.
If you need assistance creating a parental leave policy in your workplace, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
An employee can take up to 12 months of parental leave. If the employer agrees, they can ask to extend their leave for another 12 months. This entitlement is restricted if both parents work for the same employer. In this instance, the couple can take up to 24 months leave.
You can only refuse a request for additional parental leave. However, refusal is only allowed if you have given the employee a reasonable opportunity to discuss the request with you and refused the extension on reasonable business grounds.
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