Top myths about the Paid Parental Leave scheme for employers

Top myths about the Paid Parental Leave scheme for employers


There’s a lot of information out there
about the Paid Parental Leave scheme and it’s easy for misconceptions to form. Let’s debunk some of the common myths
you might come across as an employer. The Department of Human Services is
responsible for administering the Paid Parental Leave scheme. You can find out more about
the scheme on our website. We also have a dedicated Business Hotline
available to help answer any of your questions. Parental Leave Pay is funded
by the Australian Government. In most cases, employers are required to
provide their long term eligible employees with Parental Leave Pay, once
they receive the funds from us. You will need to provide it to your
employee through their normal pay cycle. The Paid Parental Leave scheme
applies to all employers, no matter the size of your business
or the number of staff you have. Even if you have just one employee,
you could be involved. First, your employee needs
to lodge a claim with us. It’s then our job to assess whether your
employee is eligible for Parental Leave Pay. We’ll then contact your business if you’re required
to provide Parental Leave Pay to your employee. Full-time, part-time, casual,
seasonal, contract and self-employed workers may
be eligible for Parental Leave Pay. You are required to provide Parental
Leave Pay to an eligible employee who: has worked for you for at least 12 months
prior to the expected date of birth or adoption will be your employee for their
Paid Parental Leave period is Australian-based, and is expected to receive
at least eight weeks of Parental Leave Pay. Parental Leave Pay does not change any
of your employees’ existing leave entitlements or give them a new entitlement to leave. And, because it’s a payment
and not an entitlement to leave, it has no effect on your
employees’ leave accrual. Under the Fair Work Act 2009, if
your employee has worked with you for 12 months or more prior to
their child’s birth or adoption, they may be entitled to up to 12
months of unpaid parental leave. They can also request an additional
12 months unpaid leave on top of this. If you currently provide paid
maternity or parental leave through an industrial
agreement or law, you cannot withdraw that entitlement
for the life of the agreement or law. Parental Leave Pay must be taken in
a continuous block of up to 18 weeks. Your employee can take it at the same
time as any type of paid or unpaid leave. For instance, they could take
four weeks of annual leave, then six weeks of paid maternity leave and
then eight weeks of unpaid parental leave, all while they’re receiving
Parental Leave Pay. When you register for the scheme and agree to
provide your employee’s Parental Leave Pay, you will elect how you want
to receive the funds from us. The options are fortnightly
or six weekly instalments. The reason we ask you about your
employee’s pay cycle and pay frequency is so we can make sure we send
you enough funds in advance, to enable you to provide Parental
Leave Pay to your employee in line with their regular pay cycle. You don’t need to wait, you can
prepare your business now. You can register for the scheme
any time on our website. An AUSkey or current Australian
Taxation Office digital certificate is your shortcut to registering and
managing your details online. If you have one, you can register any time
through our Business Online Services at humanservices.gov.au If you don’t have one, you can
get one at auskey.abr.gov.au If you choose not to get an AUSkey or
you don’t have access to the internet, you can register by calling our dedicated
Business Hotline on 131 158. To find out more about your role in
the Paid Parental Leave scheme �

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