Australia’s first paid parental leave scheme has been passed by Parliament. The scheme will commence in January 2011 and will allow eligible parents to have 18 weeks’ paid leave at minimum wage. The Federal minimum wage will soon be $570 a week. The scheme does not include an entitlement to superannuation.
The paid leave can be transferred between parents of the child if they are eligible. To be eligible, a parent must:
Although the Government funds the scheme, employers are responsible for administering the scheme. Funding will be provided to employers prior to the payments having to be made.
The Federal Paid Parental Leave scheme is in addition to employee entitlements under an employment contract or other industrial instrument.
Employers should make themselves familiar with their obligations to administer the scheme from 1 January 2011, ensure the correct systems are in place and seek legal advice if required.
Employees should make themselves aware of their eligibility under the Federal Scheme and any existing entitlements with employers. Employees covered by Federal legislation should also be aware that under the National Employment Standards, they are entitled to up to 12 months unpaid parental leave, and may be eligible for flexible work arrangements on their return to work.
