|
The Federal Government Paid Parental Leave (PPL) scheme commenced for working parents of children born or adopted on or after 1 January 2011.
The PPL scheme provides Government-funded pay at the National Minimum Wage for a maximum period of 18 weeks. Payments can commence from the date of birth or adoption, or a later date. It must be taken in one continuous period and must all be used before 12 months from the date of birth or adoption. PPL is taxable and can be received before, after, or at the same time as existing entitlements such as annual leave, and employer-funded paid parental leave.
Where can an employer find best practice guidance?
It is important that employers understand the PPL scheme as there are penalties of $6,600 for individuals and $33,000 for corporations which may apply if the employer fails to meet their obligations. Fair Work Australia has produced a Best Practice Guide to assist employers in understanding what to do, and how to implement best practice.
We recommend a review of the Guide which explains:
< the advantages of having a best practice parental leave policy; < the benefits to employers of parental leave; < employees’ entitlements to paid and unpaid parental leave; < what employers can do to make parental leave work for them and their employees; < how employers can assist a new parent whose partner is on parental leave; < implementing best practice return to work policies; < discrimination issues arising out of pregnancy and parental responsibilities; and < includes a checklist on how to achieve a best practice parental leave policy.
When is an employee eligible for PPL?
The Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) have produced a Paid Parental Leave Guide to assist with the tests required for approval and compliance measures to be undertaken by the employer. An employee is required to submit an application with the Family Assistance Office, which can be done up to three months before the expected date of birth or adoption of the child.
An employee may be eligible for PPL if they:
< are the primary carer of a newborn child or recently adopted child; < are an Australian resident; < have met the PPL work test before the birth or adoption occurs; < have received an individual adjusted taxable income of $150,000 or less in the financial year prior to the date of birth or date of claim, whichever is earlier; and < are on leave or not working from the time they become the child’s primary carer.
It is important to note that the Baby Bonus and Parental Leave Pay cannot be paid for the same child. If an employee thinks they are eligible for both payments they can check the Paid Parental Leave Comparison Estimator to decide which payment will be best for them.
Recommendations
If you have not already done so, employers should:
< implement a policy notifying employees about the government-funded PPL scheme and their entitlements under the scheme;
< change any administration systems, to ensure that your system can properly receipt and note the PPL payments released to employees;
< register for the Paid Parental Leave scheme through Centrelink Business Online Services in readiness to provide Parental Leave Pay;
< consider flexible work arrangements for returning employees following PPL leave, to avoid any claims of discrimination.
For further assistance, please contact Gary Woodman, Partner or Lisa Sylvester, Knowledge Manager on 1300 369 581.
Article by Lisa Sylvester - Knowledge Manager.
Link to printable version of this article
Link to other articles by MacGillivrays
Have you made a Will? Start one online here or talk to one of our solicitors today 1300 369 581.
PLEASE NOTE: This article is not legal advice and our comments are of a general nature only. This document is not to be relied on as substitution for proper detailed legal advice.
www.macgillivrays.com.au Brisbane | Sydney | Melbourne | Surfers Paradise | Mooloolaba |
