Australia is well known as a welfare state. Today we focus on what benefits are available under Australia’s parental leave scheme.
Parental Leave Pay is paid to the child’s primary carer, and parents can receive up to 18 weeks of paid leave.
Dad and Partner Pay is paid to working fathers or partners, including adoptive parents and same-sex partners. They can receive up to 2 weeks of benefits.
Parental Leave Pay and Dad and Partner Pay are available to eligible full-time, part-time, casual, seasonal, contract and self-employed workers.
Working employees can apply for parental leave in the following situations
Giving birth to a child
A spouse or de facto partner giving birth to a child
Adopting a child under 16 years of age
Who is eligible to apply?
Has worked for the employer for at least 12 months before the leave application date
Has responsibility for the care of the child
How long can the leave be?
Employees are entitled to 12 months of unpaid parental leave. They can also request an additional 12 months’ extension. Parents of infants can share this 12 months of unpaid parental leave, but they cannot take leave at the same time for more than eight weeks.
The Australian government and employers may provide employees with up to 18 weeks of paid parental leave. Applicants must meet the following requirements:
Be caring for a newborn or newly adopted child
Meet the income test (for this financial year, the income requirement is an annual salary no higher than $156,647)
Not work during paid parental leave, unless for a permitted reason
Pass the work test
If a newborn, the child’s birth must have been registered or applied to be registered with the birth registry in the relevant state or territory
Employees may also apply for special maternity leave in the following circumstances:
Suffering from a pregnancy-related illness
Pregnancy ending through miscarriage, termination or stillbirth
How much can you actually receive…?
Paid parental leave is paid at Australia’s national minimum wage. 18 weeks equals 90 working days of paid leave, including:
Up to 12 weeks, or 60 working days, of continuous paid parental leave
30 days of flexible paid parental leave
Currently, paid parental leave pays $812.45 per week, or $162.49 per day before tax
Requirements for Dad and Partner Pay:
At the same time, partners are also eligible for up to 2 weeks of Dad and Partner Pay, which is 10 working days of paid leave, meaning the applicant’s family can receive a total of 20 weeks, or 100 working days, of payments.
Must be caring for a newborn or newly adopted child
Meet the income test (annual salary no higher than $156,647)
Pass the work test
Not work or take leave while receiving the payment, unless for a permitted reason
If a newborn, the child’s birth must have been registered or applied to be registered with the birth registry in the relevant state or territory
Before taking leave, you need to notify your employer in advance…
If an employee intends to take parental leave, they must notify their employer at least 10 weeks in advance. In addition, the employee must confirm the leave dates with their employer four weeks before the parental leave officially begins.
What is a “safe job”?
If the employee was originally engaged in hazardous work or work that requires heavy lifting, they usually cannot continue in that role after becoming pregnant. They therefore have the right to request a transfer to a safe job, and must provide relevant medical evidence.
If no suitable safe job is available, the employee may request paid leave, known as “no safe job leave”. If the employee has served the employer for at least 12 months, the employer must pay the employee’s wages during this leave.
The employer’s role
Generally, the government pays the funds to the employer, who then passes them on to the employee. Sometimes the government pays the employee directly.
The employer is required to pay paid parental leave if the employee meets the following conditions:
Has a newborn or newly adopted child;
Has worked for the employer for at least 12 months before the expected date of birth or adoption;
Remains an employee of the company at least until the end of Paid Parental Leave;
Lives in Australia; and,
Is entitled under the rules to at least 8 weeks of Parental Leave Pay
Employers also need to communicate leave details with the employee in advance. Topics to discuss include:
What type of leave should be taken, and how to receive Parental Leave Pay while on leave (for example, paid or unpaid leave); when your employee wants to start the leave and when they expect to return to work;
How they would like to arrange their return to work (for example, returning as a part-time employee); and,
Relevant business information the employee needs to provide when applying for Parental Leave Pay
Returning to work after parental leave
When an employee returns to work at the end of their parental leave, they are entitled to continue in the same role they held before taking leave. Even if someone else has been covering their role during the leave, they must be restored to the same position.
Finally
Australia has always been relatively comprehensive in protecting citizens’ welfare entitlements. As an employee, if the parental leave application process does not go smoothly and you encounter a dispute, it is recommended to seek assistance from a professional lawyer.
