As an employer you have certain legal obligations to meet when it comes to employees who are expecting a child. The law surrounding this area has been hotly debated in recent years and is constantly evolving, with the Abbott Government’s paid parental leave scheme yet to come into effect.
As the law currently stands a pregnant employee is entitled to:
- Unpaid parental leave;
- Paid parental leave upon application; and
- A return to work guarantee.
Unpaid Parental Leave:
Under the National Employment Standards, which are set out in the Fair Work Act, employees who have completed at least 12 months of continuous service with their employer are entitled to receive 12 months of unpaid parental leave. This period can also be extended by a request in writing from the employee.
These 12 months of unpaid leave must be taken in one continuous period and can start from six weeks before the child is due, or earlier by agreement between the employee and employer.
An employee wishing to take this leave must provide their employer with notice of the start and end dates of their leave at least 10 weeks before their intended start date.
Paid Parental Leave:
Currently an employee who is the primary carer of a newborn, or recently adopted child may be entitled to receive up to 18 weeks of Parental Leave Pay under the Federal Government’s Paid Parental Leave Scheme. The pay the employee may receive is calculated at the national minimum wage amount.
The scheme is not paid for by the employer, but rather the Government. The employee needs to apply to Centrelink directly, who will then assess their claim. If approved they will pay the employer the amount the employee qualifies for and the employer then pays the employee this amount.
As an employer you are not required to pay the employee until you receive the funds from Centrelink, so you won’t be left out of pocket.
Paid parental leave must be taken in a single continuous period and can be taken at the same time as any unpaid parental leave.
Return to Work Guarantee:
The biggest obligation you have as an employer when it comes to managing employees who are expecting a child is to guarantee their position.
Under the National Employment Standards an employer must guarantee an employee who takes parental leave their position at the end of the leave. The position must be the same as prior to their leave and on the same terms, conditions and pay that it was before they took leave.
As an employer you are also obligated to take all reasonable steps to keep the employee on leave up to date of any decisions you make that may have a significant effect on their pre-leave position, including if its location moves.
The Fair Work Act does contain provisions for the termination of employment whilst an employee is on parental leave.