What are the entitlements to parental leave?
Parental leave can be complex to navigate. It has detailed eligibility requirements and notice obligations. Just like sick leave and annual leave, it's vital as an employer you're familiar with the requirements and obligations of parental leave so you and your business are compliant with the law.
Most employees in Australia are entitled to up to 12 months of unpaid parental leave if they have worked for their current employer for at least 12 months. This includes casual employees provided they also have worked on a regular and systematic basis for their employer for at least 12 months.
Parental leave can be taken in one continuous period, flexibly, or a combination of both.
The amount of parental leave that can be taken as flexible parental leave depends on when the child is born or placed for adoption:
- between 1 July 2025 and 30 June 2026 – up to 120 days.
- on or after 1 July 2026 – up to 130 days.
Each parent is able to take up to 12 months unpaid parental leave. If you as an employer agree, they can extend this to up to 24 months. An employee’s entitlement to unpaid parental leave is not affected by how much leave is taken by their partner.
Unpaid special maternity leave
There are some circumstances in which special maternity leave can also take place, for instance, if an employee has a pregnancy-related illness or after 12 weeks into their pregnancy they experience a miscarriage, termination of pregnancy or still birth.
Special maternity leave is unpaid and will not reduce the total period of unpaid parental leave may that still apply after special maternity leave has been taken.
It a pregnant employee requires alterations to their working schedule, employers should ensure the employee is in agreement to the changes made to their hours of work or pay.
If employers do not do this, they run the risk of an unfair dismissal, discrimination, or adverse action claim. These can be detrimental to a business.
Return to work guarantee
A lot of employees avoid taking leave for fear of not being able to return to their same position once leave comes to an end. However, after taking parental leave, employees are entitled to return to the role they had before the leave, or if that role is not available, a role similar in status and pay.
It is important to discuss with your employee any possible changes to working conditions that could affect them to ensure their return is as smooth as possible. Once the employee has returned to work, they may be eligible to ask for flexible working arrangements applicable to employees who are caring for a child of school age or younger as in accordance with the National Employment Standards (NES).
For free initial advice on parental leave, you can speak to one of our Peninsula team members 24/7.
This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.
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