Paid Parental Leave: What employees should know
12 Oct 2010 | 3 min
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Many employees may not be aware that a Paid Parental Leave Scheme is set to come into place from 1 January 2011. Know your rights and obligations. Here is some important information about the scheme.
- The scheme is government funded, and covers children who are born or adopted on or after 1 January 2010.
- Participation in the scheme is voluntary from 1 January 2010 to 30 June 2011. This 'grace' period has been provided to give businesses time to make adjustments to their payroll system.
- Participation in the scheme will be compulsory from July 1 2011.
- To be eligible, employees must have been in the continuous service of their employer for at least 12 months prior to the birth.
- The scheme does cover casuals, however "continuous service" may be more difficult to prove.
- A maximum of 18 weeks of paid parental leave will be provided at the minimum federal rate of $569.90 per week or $15 per hour if your application is approved by the Family Assistance Office. This amount is prior to tax deductions, and is calculated based on a 38 hour week.
- Payments for successful claims are made from the Family Assistance Office to your employer. Your employer will then pay you as part of normal payroll cycle.
- If you return to work prior to the end of the 18 week leave period, parental leave payments will cease. You must notify the Family Assistance Office if your conditions change.
It is important to notify your employer when you apply for the Paid Parental Leave Scheme, as they will be required to make the necessary payments should your application through the Family Assistance Office be successful.
Where can you find out more information?
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