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Robyn Anderson posted on January 04, 2011 11:55 
As of 1 January 2011, the Government's new Paid Parental Leave Scheme starts bringing it in line with many other western industrialised countries.
Eligible working parents of children born or adopted from 1 January 2011 will be entitled to government funded paid parental leave for the first time. Eligible parents under this scheme will receive payments at the rate of the National Minimum Wage (currently $569.90 per week gross / $15 per hour) for a maximum of 18 weeks. The Family Assistance Office (FAO) will provide the employer with the funds necessary to make the payments.
Whether or not an employee is ‘eligible’ will be assessed by the FAO. If you have an employee who wishes to apply for Parental Leave Pay, the employee will need to contact the Family Assistance Office and lodge a claim
Employers only need to make parental leave payments under this scheme from 1 July 2011. From 1 January 2011 to 30 June 2011 payments will be made by the Family Assistance Office (FAO) unless an employer chooses to make the payments. Where payments are made by the employer they should be made in accordance with the employee's usual pay cycle and a payslip should be provided to the employee. Tax should be deducted from parental leave payments but superannuation contributions do not have to be made. For those employers that use a computerised payroll system, ensure you check with your software provider to ensure it will be able to meet these new requirements or whether any applicable upgrade/modification is underway.
Government funded paid parental leave is in addition to any other employer funded schemes. This means that if your business currently has a voluntary paid parental leave scheme you will need to seek advice with regards to your contractual responsibilities.
Paid Leave such as annual leave, personal leave (sick leave & carer's leave) does not accrue to an employee absent on paid parental leave under this scheme.
Employers are advised to ensure they meet their obligations under this scheme as the Fair Work Ombudsman may investigate any claims for failure to comply with obligations under this scheme. Failure to comply could result a penalty of up to $33,000 (for body corporates), issue of a compliance notice or an infringement notice.
Please note that an employee's entitlement to unpaid parental leave as detailed in the National Employment Standards (which commenced 1 January 2010) remain unchanged.
If you need more information or have a queries regarding your obligations relating to parental leave (paid and unpaid), contact HR Navigation on 1300 669 747 or email enquiries@hrnavigation.com.au
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