We’ve had many enquiries about parental leave lately so we thought to provide an overview of the recent changes and updates to parental leave in Australia.
Paid Parental Leave
Under the Australian Government Parental Leave Pay Scheme, eligible employees can claim Paid Parental Leave for 1 set period and 1 flexible period. Employees are entitled to a payment for up to 18 weeks.
First Period – Set Parental Leave
The first period of paid parental leave is a set period of 12 weeks. This has to be used in 1 continuous period within 12 months of the birth or adoption of a child.
Second Period – Flexible Parental leave
The second period of paid parental leave allows an employee to use up to 30 days of Government-funded flexible paid leave. This has to be taken within 24 months of the birth or adoption of a child and usually commences after an employee’s first period of parental leave pay ends. For example, an employee may wish to take the initial 12 set weeks of parental leave pay when the child is born. Upon recommencement of work, the employee may choose to access flexible paid parental leave of up to 30 days either in one consecutive period or in separate periods.
Flexible Unpaid Parental Leave
Changes under unpaid parental leave were also amended to introduce greater flexibility for employees. Employees can take up to 30 days or 6 weeks of unpaid parental leave on a flexible basis at any time within 24 months of a child’s birth or adoption. This can be taken as a single continuous period of 1 day or longer, or separate periods of 1 day or longer.
The requirements for taking unpaid parental leave include:
- Giving at least 10 weeks written notice to an employer for the intention of taking leave
- Confirming the start and end dates of the leave at least 4 weeks beforehand
Income Test
The Parental Leave Pay and Dad and Partner Pay income limit increased from $150,000 to $151,350 from 1 July 2021.
Parental leave for stillbirth, premature birth or infant death
Other changes have also been made to the Fair Work Act to include new entitlements for parents who experience stillbirth, premature birth or death of a child.
Employees can take up to 12 months of unpaid parental leave if they experience a stillbirth or the death of a child during the first 24 months of life. After the death or stillbirth of a child, employers can’t direct an employee to be called back into work or cancel any of the employees’ unpaid parental leave. Employees can choose to return to work after starting unpaid parental leave by giving their employer at least 4 weeks written notice before returning.
Premature birth and birth-related complications
Upon agreement with their employer, employees who experience premature births or other birth-related complications resulting in the hospitalisation of their child, may put their unpaid parental leave on hold. While their newborn is hospitalised, parents can return to work and will not have their unpaid parental leave deducted.
Special maternity leave
A pregnant employee who is eligible for unpaid parental leave can take unpaid special maternity leave if
- she has a pregnancy-related illness,
- has been pregnant,
- her pregnancy ends after at least 12 weeks because of a miscarriage or termination
- the infant isn’t stillborn.
If an employee takes special maternity leave because of a pregnancy-related illness, the leave will end when the pregnancy or illness ends, whichever is earlier. If she takes leave because of a miscarriage or termination, it can continue until she is fit for work. The employee won’t be entitled to take special maternity leave if the infant is stillborn, but she may still be entitled to take unpaid parental leave. Special maternity leave won’t reduce the amount of unpaid parental leave that an employee can take.
Keeping in touch days
Keeping in touch days allows an employee who is on unpaid parental leave to go back to work for a few days. Employees get 10 keeping in touch days which doesn’t affect their unpaid parental leave. If the employee extends their period of unpaid parental leave for more than 12 months, they can take an additional 10 days.
Keeping in touch days can be worked:
- as part of a day
- 1 day at a time
- a few days at a time
- all at once
Employees get paid their normal wage and accumulate leave entitlements for each keeping in touch day or part day.
We hope you find this information useful!