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Parental leave, also known as maternity or paternity leave is taken by thousands of Australians every year. As an employer, you play a crucial role in processing your employee’s parental leave. Determining whether the leave is paid or unpaid, how long the leave extends for, flexible work arrangements are all matters that require your approval.
Therefore, if you’re an employer (or plan to become one), it is crucial to understand the role of parental leave in your workplace. Good preparation will ensure that when one of your employees needs to take parental leave, you’ll be ready to assist them.
What Is A Parental Leave For Employers?
When an employee has a child, their partner has a child or they adopt a child under the age of 16, they are entitled to parental leave. This leave gives parents time away from work after the birth of a child or the placement of an adopted child.
Notice Of Intention
In order to apply for parental leave, an employee must let their employer know their intention to take leave via written notice at least 10 weeks before the date. Remember, this 10 weeks is a minimum requirement. However, your organisation should be prepared to make arrangements for an employee going on parental leave within that time. For instance, properly processing their request and finding someone to temporarily fill their role.
Supporting Evidence (If Requested)
As an employer, you have the right to request supporting evidence for parental leave. This could be in the form of a medical certificate or statutory declaration, ensuring you have the necessary documents to confirm your employee’s leave request.
Different Classifications Of Parental Leave
There’s a number of different types of parental leave. It’s a good idea to familiarise yourself with them when running a company so you can prepare your company policies accordingly. Various parental leave arrangements include:
- Continuous Parental Leave: Uninterrupted leave for up to 12 months
- Flexible Parental Leave: Within the first two years, an employee can take up to 30 days of their leave in flexible arrangements
- Both Parents Taking Leave: Both parents can take unpaid parental leave simultaneously for up to 8 weeks. They can do this in one continuous block or separate periods of at least two weeks each
- Adoption Leave: Adoption leave is the same as parental leave, as long as the child is under the age of 16
- Surrogacy Arrangements: Parents of a child born through surrogacy also have the same leave entitlements as parents giving birth to children or adopting them
- Government-Funded Parental Leave Pay: The Australian Government provides up to 18 weeks of paid parental leave (PPL) at the national minimum wage to eligible primary carers
- Employer-Funded Leave: Additional paid parental by employers, along with the government mandated PPL
- Unpaid Parental Leave: Eligible employees can take up to 12 months off work without pay with the possibility of extending it for an additional 12 months
Eligibility Criteria For Paid Parental Leave
Aside from the obvious criteria of expecting or adopting a child, there’s a few other requirements employees need to meet in order to qualify for paid parental leave.
Primary Carer: The employee needs to be considered the primary carer of the child.
Employment Duration: An employee needs to have worked at your company fosr at least 12 months prior to the expected date of birth or adoption placement.
Employment Status: Full time, part time and casual employees are all eligible for parental leave. For casual employees, they need to have been working on a regular basis with a reasonable expectation of their employment continuing.
Income Test: To qualify for paid parental leave, the employee must meet an income test. To pass this test, the individual’s income must be below the threshold amount for that financial year. This amount tends to change annually. For instance, for the 2022-2023 financial year, the income threshold was $156,647.
Work Test: The employee needs to have worked for at least 10 of the 13 months before the arrival of the child. During that period, they need to have worked at least 330 hours.
Are There Circumstances Where Parental Leave Is Unpaid?
Yes, there are circumstances where parental leave is unpaid. Employees are entitled to a certain amount of paid parental leave under the Australian government’s paid parental leave scheme. However, if an employer doesn’t offer their own paid parental leave, any leave taken after the government paid leave period ends will be unpaid leave.
This doesn’t mean employees are expected to return to work as soon as their paid leave ends. In fact, employees are entitled to 12 months of unpaid parental leave under the Fair Work Act 2009. The same qualification criteria applies for unpaid parental leave as it does for paid parental leave (see above).
Employees can also request an additional 12 months of unpaid leave, after their initial 12 months of unpaid leave has ended. However, approving this leave will be at your discretion as an employer – remember, both parents cannot take a combined period of parental leave that exceeds 24 months.
Another type of unpaid parental leave that’s important to be aware of is special maternity leave. If an employee experiences miscarriage (after 12 weeks), still birth, pregnancy termination or a pregnancy related illness they can take special maternity leave. This leave is unpaid and is considered separate to the 12 months of parental leave an employee is entitled to.
Employer Responsibilities In The Entitlement Process
The leave entitlement process is a key responsibility for all employers. As such, it’s important to adequately prepare this process and effectively communicate them to your employees. It’s a good idea to consult with an employment law expert and prepare professionally drafted Workplace Policies and Employment Contracts. That way, both you and your employees can be on the same page regarding important matters such as parental leave.
Return To Work Guarantee
Employees taking parental leave have the right to return to work. As an employer, it’s your duty to safeguard their job and ensure they can return to their original position after parental leave. If that position is no longer available, an employee returning from parental leave should be offered a position with similar responsibilities and salary to their previous one.
Employer Benefits Of Offering Paid Parental Leave
Internal company paid parental leave policies may be optional however, we highly recommend considering implementing them. Paid parental leave is a benefit that many employees value highly. If you aim to recruit top talent, retain employees, and keep morale high, offering benefits such as paid parental leave is an excellent strategy.
The Significance Of Law Advisors On Employee Matters
The right to parental leave and other employee entitlements are protected by federal legislation. Providing your employees with their minimum rights plus any additional benefits can get a bit tricky, as you want to make sure you’re being legally compliant at all times.
It is wise to recruit the help of a legal expert when deciding on employee matters. A legal expert can advise you on how to be legally compliant while developing policies that benefit both the company and your employees.
How Sprintlaw Can Aid In Employment Law And Benefits Compliance
Our legal experts understand the complexities of employment law and the importance of compliance with employee entitlements and benefits. Our team of experienced legal professionals is here to provide clear, practical advice tailored to your business needs. Whether you need assistance drafting workplace policies, understanding parental leave entitlements, or ensuring legal compliance, we can help you navigate these challenges with confidence.
Employment Law Services
If you have questions regarding parental leave or any other employment-related queries, our employment law experts are here to help. When it comes to employment law, it’s best to talk to someone who thoroughly understands the ins and outs of employment law. Access our employment law experts at your convenience, online and stress-free, for a chat about your concerns.
Contract Services
The stronger your contracts, the better protected your company is. Contracts are an essential part of legal compliance measures, especially when it comes to employment law. That’s why it’s necessary to have contracts tailored specifically to your company’s needs.
Prioritise Your Employee’s Benefits For A Successful Business
Awareness of employment law can significantly help your business. The law can be confusing; but with Sprintlaw, we will handle legal processes for you. To summarise what we’ve discussed:
- Employers play a crucial role in managing parental leave, determining whether it is paid or unpaid, and ensuring compliance with notice and documentation requirements
- Employees are entitled to parental leave when expecting or adopting a child, with specific notice and supporting evidence requirements
- Various classifications of parental leave include continuous, flexible, adoption, and surrogacy arrangements, with both government and employer-funded options available
- Eligibility for paid parental leave includes being the primary carer, meeting employment duration and status criteria, and passing income and work tests
- Unpaid parental leave is available for up to 12 months, with the option to extend for another 12 months, subject to employer approval
- Employers must safeguard employees’ jobs during parental leave, ensuring they can return to their original or a similar position
- Offering paid parental leave can enhance employee retention, attract top talent, and boost morale, while legal experts can help ensure compliance with employment laws and develop effective workplace policies
If you would like a consultation on paid parental leave or employment law, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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