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ARTICLE · 11 OCTOBER 2010

Preparing for the Paid Parental Leave Scheme

Employers should be reviewing their payroll systems and processes. employment contracts and industrial instruments to get ready for the Paid Parental Leave Scheme.

AustraliaEmployment and HR

Key Points:

Employers should be reviewing their payroll systems and processes. employment contracts and industrial instruments to get ready for the Paid Parental Leave Scheme.

Employers should take note of the passing of the Paid Parental Leave Act 2010 which introduces an unprecedented government-funded Paid Parental Leave Scheme within Australia and will impose a number of additional employer obligations and administrative costs.

What is the Scheme?

Applications for paid parental leave may be made from 1 October 2010 and the Scheme will provide a maximum entitlement of 18 weeks' paid parental leave at the National Minimum Wage (currently $569.90).

Paid parental leave will be available to primary caregivers and adoptive parents who have a baby or adopt a child on or after 1 January 2011, and who meet the requisite work test, income test and residency requirements.

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