In December 2001 Parliament began its first reading of the Parental Leave and Employment Protection (Paid Parental Leave) Amendment Bill.
Several details of the scheme have been fine-tuned since its initial announcement. Now more part time employees will be entitled to paid parental leave. Self-employed women are still excluded. New mothers (or their partners, if the entitlement is transferred) who are eligible under the current criteria for unpaid parental leave, will receive tax-funded gross payments of up to $325 a week for a continuous period of 12 weeks. Payments start from 1 July 2002, and will be made fortnightly.
The Bill introduces slight changes to the eligibility criteria. As the Act currently stands, only those who work 'at least' 10 hours a week would have been eligible. Under the new provisions, those working 'on average' 10 hours a week will be entitled to paid parental leave. The change will potentially increase dramatically the number of mothers who will qualify for leave and payment - such as those in casual, job share, rostering or on-call arrangements.
Those receiving payment for parental leave under the scheme will not be entitled to receive more under the scheme per week than the amount they normally earn - this may be up to $325 per week.
An employee's statutory entitlement to a parental leave payment is not reduced by any payment for parental leave by their employer under their employment agreement, unless the employee agrees. The Government will pay up to $325 per week on top of any paid parental leave the employer provides. Employers need to think about adjusting their employment agreements to reduce their parental leave payments to employees by the amount the employee will receive under the state funded scheme. Employers cannot reduce such contractual entitlements without the employee's agreement. So employers need to alter the agreements that are offered to new employees and obtain agreement from current employees to alter their entitlements, possibly at annual review time. There are potential savings for employers who currently provide paid parental leave.
There are some compliance requirements.
When an employee notifies her employer she wishes to take parental leave, the employer must provide information about her rights to paid parental leave. If the employee does not return to work, she is not required to refund any of the payments she has received. If the employee is employed under a fixed term agreement, her parental leave payments will cease when her employment comes to an end, regardless of whether she has received payment for 12 weeks.Keypoints
- New mothers (or their partners, if the entitlement is transferred) who are eligible under the current criteria for unpaid parental leave will receive tax-funded gross payments of up to $325 a week for a continuous period of 12 weeks.
- Under the new provisions, those working 'on average' 10 hours a week will be entitled to paid parental leave.
- The Act apparently will pay up to $325 per week on top of any paid parental leave the employer provides.
This article is intended as a first point of reference and should not be relied on as a substitute for professional advice. Specialist legal advice should always be sought in relation to any particular circumstances and no liability will be accepted for any losses incurred by those relying solely
on this article.
Copyright Phillips Fox, December 2001
For further information please contact John Hannan, partner: john.hannan@phillipsfox.com
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