What are the arrangements
for parental leave?
Parental leave is time off work available by law to new parents.
The leave is to provide employees 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 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,
for an employer to discriminate against a woman on the grounds
of pregnancy.
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more information
Who is eligible for leave?
Employers are required to provide (unpaid) time off work for
an employee who, at the expected date of birth or adoption, will
have worked for them for:
- the immediately preceding 6 or 12 months, and who has not taken 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 during the 6 or 12 month qualifying period.
If the employee works an irregular employment pattern, the normal
pattern of hours over the period is used to establish the average
hours.
Where there is a desire to share the leave between partners,
both of them must meet the two eligibility tests above.
How much time off do employees 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.
This unpaid leave is separate from, and additional to, the
domestic/special leave provided for in the Holidays Act.
- Up to 14 weeks maternity leave (for
the mother or primary carer) where the worker meets the 12 month eligibility test. Six weeks of this leave 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.
An employer 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, they
can transfer the employee to another comparable position that
would be safer for them. The employer and their employee can
also agree to an earlier start date that is convenient to both
of them.
- Up to 2 weeks partner/paternity leave for those meeting the 12 month eligibility test or one week for those where the 6 month test is met.
This may be extended in some situations. This leave can be taken at any time from 3 weeks before the expected
date of birth until 3 weeks after birth, or, if the child stays in hospital for over 3 weeks, the date upon which the child is discharged from hospital.
- 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 by the eligible partners, but
must be taken in continuous periods. Partners can take leave
simultaneously if they wish. This leave is only available to a mother and her partner if they qualify for leave on the basis of 12 months' service.
What is the payment entitlement?
The law provides for a Government payment of up to $407.36 before
tax for up to 14 weeks. The leave and 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, the employer
is required to complete an application form and send it to Inland
Revenue. An employee can transfer their payment to their eligible partner. Where the partner qualifies on the basis of 6 months service, the employee also transfers the leave entitlement. The Inland Revenue form requires the employer to confirm that the
employee is entitled to payment (has met the eligibility criteria
above) and their earnings.
In calculating the entitlement where the average weekly payment
over the 6 or 12 months is less than $407.36, 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.
Must an employer agree to the leave?
Yes, the Act provides a right to leave to all eligible employees.
However, it does allow the employer to say that they are unable
to keep an employee's job open for them where it is a 'key position'
and where they are seeking more than 4 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 the employer's business and the requirements of the
job.
How does an employee apply for leave or the payment?
The Act states that at least 3 months before the expected date
of birth the employee should provide their employer with a written
request for leave and a certificate confirming the date. The
employer is required to respond to the request within 3 weeks.
Sample
letters requesting leave, the employer 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 the employer and the employee
agree.
The employer is 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 the employer to
confirm the details of the employee's period of service, hours
of work, earnings, leave intentions and the fact that they have
been satisfied that the expected date of delivery is correct.
The employer should complete these details as soon as possible.
When they have completed the declaration on the form they will
return it to the employee whose responsibility it is to forward
the application form to Inland Revenue.
There is no requirement for an employer to inform Inland Revenue
of the commencement of leave, birth of the child, or return to
work of the employee.
What about 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 the employer informed.
What happens to leave or payment entitlements in existing employment
agreements?
If the employment agreement 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 3 months or without a minimum requirement
for hours worked) does not affect the eligibility requirements
for the tax-based payment.
What happens when the 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. back to top
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