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workplace
Paid parental leave
Do you know about your obligations to employees under the new
Parental Leave Scheme? Benjamin Be has the details.
THE AUSTRALIAN Government
has recently legislated a
Parental Leave Scheme that pays
mothers and adoptive parents
who have been working and
have a baby or adopt a child under
16 on or after 1 January,
2011. This new government
funded scheme is complimentary
to the existing 12 months unpaid
parental leave provided for
under the National Employment
Standards. This is a rundown of
what you need to know.
Does it affect my employees?
Long term employees, having
completed 12 or more months
of employment with the same
employer, qualify for the scheme
provided they pass the Work
Test, Income Test and Residency
Test. This is determined by
the Family Assistance Office
upon an employee’s application,
applying whether they are casual,
part-time, or full-time.
Given the nature of the hospitality
industry, most employees
would meet the minimum requirements.
The Work Test requires
an employee to work
continuously for at least 330
hours in 10-months over a 13month
period with no gap of
more than 8 weeks. The Income
Test requires an employee to
earn less than $150,000 per annum.
The Residency Test also
requires an employee to live in
Australia and meet the residency
requirements.
What do employees receive?
This leave entitlement is spread
over an 18-week period paid at
the National Minimum Wage
(currently at $569.90 a week).
This is subject to PAYG tax and
will increase in correlation with
the National Minimum Wage
determination each year.
What about the Baby Bonus?
Parents who opt for the Paid
Parental Leave will forgo the
Baby Bonus (currently $5,185
over 26 weeks) and Family Tax
Benefit Part B.
As an employer what am I supposed
to do?
While the scheme is effective
from the 1 January, 2011, the
employer’s role is being phased
in over six months. While some
employers may choose to provide
Parental Leave from 1 January,
the employer’s role will officially
begin on the 1 July, 2011
with employees who qualify for
eight or more weeks of paid
parental leave.
Regardless of when an employer
chooses to start, the Family
Assistance Office provides
employers with Paid Parental
Leave funding.
What if I already have a Paid
Parental Leave Scheme?
Employers with their own paid
parental leave policy should
note that such a policy co-exists
with the new government
scheme. Employers may want to
modify their policy to respond
to the new government scheme
depending on what they want to
offer to their employees.
Planning for the future
Given the estimation that 85 per
cent of employees will benefit
from this scheme, it reflects the
profound effect it will have on
the industry. Employers have an
opportunity to take advantage
of this change to institute best
practice in their policies and
procedures.
Restaurant and Catering Australia
helps members to update
existing and create new Paid
Parental Leave policies. Moreover,
it provides further information
as to how parental leave
affects businesses in our industry
in order to avoid underpayments.
This will ensure that employers
comply with the myriad
of workplace rules under the
National Employment Standards.
Benjamin Be is a workplace relations
advisor with Restaurant
and Catering Australia. For
more information contact
R&CA on 1300 722 878.
10 hospitality | august 2010 hospitalitymagazine.com.au