| Do I have to provide parental
leave?
Parental leave is time off work available by law to new parents.
The leave is to provide your employee with the opportunity to
care for their newborn baby or an adopted child under six years.
Where parents are taking leave to care for a baby born or adopted
there is also a tax-funded payment available to them.
It is important to be aware that it is a breach of the Parental
Leave and Employment Protection Act, and the Human Rights Act,
to discriminate against a woman on the grounds of pregnancy.
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more information
Who is eligible for leave?
You are required to provide (unpaid) time off work for an employee
who, at the expected date of birth or adoption of a child under six, will have worked
for you for:
- the immediately preceding 6 or 12 months, and who has not taken a previous period of parental
leave in the 12 months before the parental leave period, and
- an average of 10 hours per week, on the basis
of at least one hour every week or 40 hours every month in the 6 or 12 month period.
If the employee works an irregular employment pattern, the normal
pattern of hours over the period is used to establish the average
hours.
How much time off do they get?
Four types of unpaid leave are available to employees. These
are:
Up to 10 days special leave which can
be used before maternity leave begins to enable a pregnant
woman to attend medical appointments, antenatal classes, etc.
Up to 14 weeks maternity leave (for
the mother or primary carer), 6 weeks of which can be used
before the expected date of delivery. Where a medical advisor
states that it is necessary for the health of the mother or
child to commence leave earlier, this time can be extended.
You can also ask an employee to commence their leave at an earlier
time if there is a genuine inability to perform normal duties
for health and safety reasons. Alternatively, you can transfer
the employee to another comparable position that would be safer
for them. You and your employee can also agree to an earlier
start date that is convenient to both of you.
Up to 2 weeks partner/paternity leave.
This can be taken at any time from 3 weeks before the expected
date of birth until 3 weeks after the birth or, if the child is in hospital for longer than 3 weeks, the date upon which the child
is discharged from hospital. Where entitlement is on the basis of 6 months employment, partner/paternity leave is 1 week but may be extended in certain situations.
Up to 52 weeks extended leave , from
which any period of maternity leave will be deducted (e.g.
if 6 weeks is described as maternity leave, the partners retain
46 weeks extended leave that may be shared between them). This
leave can be shared in any manner the partners choose, but
must be taken in continuous periods. Partners can take leave
simultaneously if they wish. This leave is only available to a mother and/or her partner if they have qualified on the basis of the previous 12 months service.
What is the payment entitlement?
The law provides for a Government payment of up to $391.28 before
tax for up to 14 weeks. The leave and the payment may be shared with an eligible partner. The payment is to help replace wages
and employees will receive this entitlement only when they take
leave.
Inland Revenue credits the payment to the employee's bank account on a fortnightly
basis. It is subject to the employee's normal tax rate, including student loan
repayments.
When an employee wishes to apply for the payment, you are required
to complete an application form and send it to Inland Revenue.
This form requires you to confirm that the employee is entitled
to payment (has met the eligibility criteria above) and their
earnings.
In calculating the employee's entitlement where their average
weekly payment over the 6 or 12 months is less than $391.28, you should
calculate the larger amount of:
- their average weekly earnings
- their ordinary weekly pay.
As you may be making that calculation some months before the
date of birth, you will be required to estimate their income
based on the work pattern they have been undertaking. If, for
example, an employee has worked 8 hours one week and 16 hours
the following in a pattern for the past 10 months, the average
hours and earnings should be calculated as if that pattern of
work continues to the date of birth.
If you require assistance in making this calculation go to our paid
parental leave calculator, or try a more detailed search or ask us a question.
Must I agree to the leave?
Yes, the Act provides a right to leave to all eligible employees.
However, it does allow you to say that you are unable to keep
an employee's job open for them where it is a 'key position'
and where they are seeking more than four weeks leave. The test
of a key position is not whether it would be convenient to replace
them with another permanent or contract employee for the period
of leave, but whether it is necessary to do so. Necessity will
depend on the circumstances of a particular position, including
the size of your business and the requirements of the job.
If you are considering advising an employee that you are unable
to keep the job open for this reason, it would be wise to obtain
advice from your employer organisation.
What do I do when I receive an application for leave or payment?
The Act states that at least 3 months before the expected date
of birth your employee should provide you with a written request
for leave and a certificate confirming the date. You are required
to respond to the request within three weeks.
Sample
letters requesting leave, your response to their request
and, if necessary, advising the employee on their rights to
paid parental leave, are available on this site. Many workplaces
handle requests for leave on a more informal basis and this
is fine, as long as you and your employee agree.
You will be required to complete a portion of the employee's
application form for payment. There are two application forms,
one for the mother or primary carer and a second for employees
who have had the right to payment transferred to them from their
partner. Both contain a section which requires you to confirm
the details of the employee's period of service, hours of work,
earnings, leave intentions and the fact that you have been satisfied
that the expected date of delivery is correct.
Please complete these details as soon as possible. When you
have completed the declaration on the form you should return
it to the employee; it is the employee's responsibility to forward
the application form to Inland Revenue.
There is no requirement for you to inform Inland Revenue of
the commencement of leave, birth of the child, or return to work
of the employee.
What about an eligible employee adopting a child?
In some circumstances it will be impossible for the employee
to provide clear notice of their intention to take leave. In
these circumstances, employees should use their best endeavours
to keep you informed.
What happens to leave or payment entitlements in existing
employment agreements?
If your employment agreement with the employee provides additional
entitlements to payment or leave, these continue to apply. A
more generous eligibility entitlement under the employment agreement
(e.g. making leave available after three months or without a minimum
requirement for hours worked) does not affect the eligibility
requirements for the tax-based payment.
What happens when an employee returns to work?
The employee is required to give 3 weeks notice of their intention
to return to work. If they return to work while receiving a parental
leave payment the payment stops and it is their responsibility
to advise Inland Revenue.
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