Paid parental leave is available to parents whose children are born after and parents who adopt a child after 1 January 2011.
Who is eligible for paid parental leave?
Employees of any type are eligible for paid parental leave (including casual employees and self-employed individuals). In addition to your employment, it is necessary to satisfy the paid parental leave scheme work test. This stipulates that you must have:
- been working continuously for 10 of the 13 months prior to birth/adoption;
- worked at least 330 paid hours of work in those 10 months (except where there have been pregnancy complications/premature birth); and
- been employed by the same employer for at least 12 months.
Further tests of eligibility are that you must be the primary carer of a child born or adopted after 1 January 2011 (ie, meeting all primary (physical) needs of the child), and that your income be $150,000 or less.
Finally, surrogate mothers, mothers whose child was stillborn and natural mothers of adopted children are also eligible for paid parental leave.
What should I do whilst receiving parental leave payments?
It is important to remember that whilst you are on paid parental leave, you are prohibited from working for the duration of the leave. Should you begin work without disclosure of such changes in your circumstances to Centrelink, you may be liable for prosecution as this constitutes a Centrelink Offence. However, there are some exceptions, including the provision for recipients of parental leave payments to ‘keep in touch with work’ following the passing of 2 weeks from the birth of the child. This time spent keeping in touch is limited to 10 days, and whilst keeping in touch with work, you are entitled to be paid your normal work rate plus the parental leave pay.
It is possible to receive paid parental leave in conjunction with other types of leave to which you may be entitled (including annual leave and voluntary paid parental leave [that which is not required by legislation and given voluntarily by the employer]). However, in relation to baby bonuses, you are not able to claim both paid parental leave and the baby bonus simultaneously and for the same child, unless you are a parent to twins- in which case, you may claim the baby bonus for one child and paid parental leave for the other.
How are paid parental leave payments made?
To apply for paid parental leave, it is necessary to contact the Family Assistance Office and subsequently have the application approved by the secretary of the FAO. Grants of paid parental leave will become compulsory after 1 July 2011. Claims can be made online via the Centrelink website.
Paid parental leave is to be paid fortnightly by the employer, who is reimbursed by the secretary of the Family Assistance Office. The rate of payment is at the minimum wage, which currently stands at $570 per week. For a more accurate indication of the amount that you will be paid whilst on paid parental leave, and to assist you in deciding whether to claim paid parental leave click here for the paid parental leave comparison estimator.
How long am I entitled to receive paid parental leave?
In order to receive the maximum grant of 18 weeks paid parental leave, claims must be made before the end of 34 weeks after the birth or adoption of the child. Claims made after this time will result in grants of shorter periods of leave (for example, a claim made 36 weeks after birth will result in a grant of only 16 weeks leave). For more details on the result of claims made after 34 weeks, click here.
How can Prime Lawyers help you?
Our employment law solicitors at Prime Lawyers are experienced in dealing with issues relating to employment and leave entitlements. They keep up to date with this rapidly changing area of law and as a result can offer you advice based on the most current developments in employment law.