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Paid Parental Leave – what it means for employees!

posted Oct 4, 2010 5:15 PM by Lisa Russell   [ updated Oct 4, 2010 8:45 PM ]

Taking time away from work for a new baby is a common part of working life. The Paid Parental Leave scheme will help parents spend more time at home with a new baby, and help employers keep skilled and valuable staff! Here's what it means.....

FOR EMPLOYEES

Am I eligible?
You may be eligible for Parental Leave Pay if you:
  • are the primary carer of a newborn child or recently adopted child
  • are an Australian resident
  • have met the Paid Parental Leave scheme work test before the birth or adoption occurs,
  • have received an individual adjusted taxable income of $150,000 or less in the previous financial year, and
  • are on leave or not working from the time you become the child’s primary carer.
The Paid Parental Leave scheme work test
To meet the Paid Parental Leave scheme work test you must have:
  • worked for at least 10 of the 13 months prior to the birth or adoption of your child, and
  • worked for at least 330 hours in that 10 month period (just over one day a week), with no more than an eight week gap between two consecutive working days (a working day is a day you have worked for at least one hour). There are some exceptions to the work test if you cannot meet it due to pregnancy complications and/or premature birth.
You do not need to be working full-time to be eligible for Parental Leave Pay. You may meet the work test even if you:
  • are a part-time, casual or seasonal worker
  • are a contractor or self-employed
  • work in a family business such as a farm
  • have multiple employers, or
  • have recently changed jobs.
  • If you work for a family business (such as a farm), you can include your hours of work even if the business is not generating any income, providing you are undertaking the work for financial gain or benefit.
Can I work while receiving Parental Leave Pay?
If you return to work, your Parental Leave Pay will stop. If you decide to return to work before the end of your 18 week Paid Parental Leave period you will need to notify the Family Assistance Office. The unused part of your Parental Leave Pay may be transferred to your partner if they meet the eligibility criteria and claim your unused Parental Leave Pay. The unused Parental Leave Pay may also be transferred to a separated father or their new partner, if eligible.
You can ‘keep in touch’ with your workplace....This means you can participate in activities at the workplace for up to 10 days from the birth or adoption of your child until the end of your Paid Parental Leave period without losing your entitlement.  For example, your employer may have scheduled a short training course that you want to attend. This must be a voluntary agreement between you and your employer. Your employer cannot make this a compulsory requirement for you.

Will the Paid Parental Leave scheme affect existing leave entitlements offered by my employer?
The Paid Parental Leave scheme provides you with Parental Leave Pay but does not give you an entitlement to leave.  The scheme does not change any of your existing leave entitlements.If you are eligible for the Paid Parental Leave scheme, you will be able to access up to 18 weeks of government-funded Parental Leave Pay, as well as any of your existing employer-provided paid or unpaid leave. You can take your Parental Leave Pay before, during or after any paid maternity or parental leave, or other employer-funded leave entitlements (such as annual leave or long service leave). If your employer currently provides paid maternity or parental leave through an industrial agreement, they cannot withdraw the entitlement for the life of that agreement.
 
When does Parental Leave Pay start?
From 1 January 2011, you and your employer can agree that your employer will provide your Parental Leave Pay.  Your employer will be funded by the Australian Government to do this if you are eligible.  If either you or your employer do not agree, you will receive your Parental Leave Pay from the Family Assistance Office.

From 1 July 2011, your employer must provide your Parental Leave Pay if you have worked with them for at least 12 months prior to the expected date of birth or adoption of your child and you will be receiving at least eight weeks of Parental Leave Pay.  If this does not apply to your situation, you and your employer can still agree that your employer will provide your Parental Leave Pay after 1 July 2011, provided you are eligible.

For further information about what it means for employers click here. Or for further information about your rights and obligations please contact us now on 07 5444 7771.
 
Alternatively, you can contact the Family Assistance Office between 8am and 8pm (local time) Monday to Friday on 13 61 50.