As an employer, it is likely that some of your employees will decide to become a parent. Hence, it is important to know the different types of leave that your employees may be entitled to in these circumstances. This article will explain the different types of leave, including paid parental and unpaid parental leave.
As an employer, understand your essential employment obligations with this free LegalVision factsheet.
What is Paid Parental Leave?
The Government Paid Parental Leave Scheme (“the Scheme”) provides paid leave to employees who:
- earn below the current income threshold of $156,647 in the financial year before the birth or adoption of a child;
- have worked for at least 10 of the 13 months preceding the date of birth or adoption for at least 1 day a week; and
- will not work for the duration of the time they will receive leave payments.
If parents meet the above eligibility criteria for the Scheme, the Scheme pays the primary carer 18 weeks’ pay at the set minimum wage at the time they take leave. Currently, the minimum wage is $812.60 per week. This payment is taxed as income.
Who Receives Pay Under the Scheme?
To be eligible, you must be the primary carer of the child. Hence, both parents cannot obtain the payments at the same time unless there are exceptional circumstances. Nevertheless, parents can share the leave period between each other. For example, one parent can take 12 weeks of government-paid leave, while the other can six.
Some employers also offer parents additional payments to the Scheme benefits. Employers can offer additional benefits to:
- reward employees who have worked for the business for a reasonable period; and
- entice employees to return to the business after their leave.
Paid leave also recognises the financial burdens of raising a child. If you make additional payments to employees who take parental leave, this has no bearing on whether they are eligible for the Scheme.
What is Unpaid Parental Leave?
In addition to the Scheme, eligible employees are also entitled to 12 months of unpaid parental leave. While employees also have the ability to request a further 12 months of unpaid leave in specific circumstances, the combined amount of leave cannot exceed 24 months.
Who is Entitled to Unpaid Parental Leave?
To be eligible for 12 months of unpaid leave, employees must have worked for an employer for at least 12 months immediately before the expected birth of the child. In the case of adoption, employees must have worked for at least 12 months prior to the expected placement date.
Notably, casual employees are not entitled to unpaid leave unless:
- they have worked for their employer for at least 12 months immediately before the expected birth or the expected placement date of a child on a regular and systematic basis; and
- would have expected to continue to work on a regular or systematic basis, but for the birth or adoption of their child.
Additionally, the entitlement of full-time, part-time and casual employees to 12 months of unpaid parental leave also extends to their partners. However, different rules apply depending on whether both parents are working or one parent is working, and the other is not.
If one parent is working and the other is not, it is possible for the employee who has not given birth to start their leave later than the birth date. This is as long as they are responsible for the child’s care and have accrued 12 months of continuous service with you before the leave starts.
Can I Refuse a Request For Additional Leave?
Where an employee requests an additional 12 months of leave, you can refuse the request if you:
- provide the employee with a reasonable opportunity to discuss the request;
- make your decision based on reasonable business grounds; and
- provide your employee with a written response outlining such grounds.
Nevertheless, it is important that you genuinely consider your employee’s request for additional leave. Notably, employees now have the ability to approach the Fair Work Commission to assist with a dispute.
Continue reading this article below the formAnti-Discrimination
Once your employee returns from parental leave, they are entitled to:
- return to their pre-parental leave position; or
- if their pre-parental leave position does not exist anymore, another available position for which they are qualified is near in status and pays the same as their pre-parental leave position.
You must avoid engaging in any adverse action that discriminates against an employee who returns from parental leave. Adverse action covers a range of activities in the workplace that, if taken for a discriminatory reason, can be unlawful. Unlawful discrimination can arise if you:
- treat an employee less favourably than other people because they exercised a workplace right to take parental leave; or
- require an employee to obey specific rules or conditions that may be unreasonable due to their personal attributes.
If you are concerned about unlawful discrimination in the workplace, it would be a good idea to seek legal advice immediately.
Strategies
Beyond your legal obligations concerning parental leave, you may want to consider taking further steps by:
- keeping in touch with your employees while on leave;
- having a return-to-work coordinator to connect with your employees on leave and facilitate their return to work;
- implementing a return-to-work plan to support your employee’s reintegration; and
- offering your employees flexible work arrangements upon their return.
The benefits of implementing these strategies may include the following:
- lower staff turnover;
- lower recruitment and training costs;
- improved employee satisfaction and commitment, and
- a smoother transition between work and leave.
Key Takeaways
As an employer, determining which type and how much parental leave your employees may be entitled to can be a daunting task. There are certain eligibility criteria your employees will have to meet in order to be eligible for either the Government Paid Parental Leave Scheme or unpaid leave.
If you need assistance with parental leave entitlements, 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
Eligible employees may be entitled to 18 weeks of government-paid parental leave, as well as 12 months of unpaid leave. Employees can also request an additional 12 months in specific circumstances.
The government provides eligible employees with paid parental leave for 18 weeks at the national minimum wage. The national minimum wage is currently $812.60 per week.
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