Paid Parental Leave: What employers should know

14 Oct 2010 | 3 min read
Many employers may not be aware that a Paid Parental Leave Scheme is set to come into place from 1 January 2011.
 
Here is some important information about the scheme:

  • 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. After this point,
  • The scheme will be compulsory from 1 July 2011.
  • Employees must lodge their claims directly with the Family Assistance Office, and not through their employer.
  • To be eligible, employees must have been in the continuous service of their employer for at least 12 months.
  • The scheme does cover casuals, however "continuous service" may be more difficult to prove.
  • If approved, 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. This amount is prior to tax deductions, and is calculated based on a 38 hour week.
  • If the employee returns to work prior to the end of the 18 week leave period, parental leave payments will cease.
  • If the application is successful, payments are made from the Family Assistance Office to the employer. The employer will then be required to pay the employee as part of normal payroll cycle.
Paid Parental Leave: What employers should know
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