26 March, 2024

Paid Parental Leave Set to Increase

Industry News |

Parliament passed the Paid Parental Leave Amendment (More Support for Working Families) Bill 2023 on 18 March 2024, which will increase the amount of paid parental leave parents can access.

 


 

The Bill

The Bill includes various amendments and clarifications, including in relation to when a person is entitled to paid parental leave.  Notably, the amount of paid parental leave is set to increase by two weeks each year until the total entitlement is 26 weeks, as set out below:

  1. for a child born before 1 July 2024—100 days of paid parental leave (equivalent to 20 weeks);
  2. for a child born between 1 July 2024 and 30 June 2025—110 days of paid parental leave (equivalent to 22 weeks);
  3. for a child born between 1 July 2025 and 30 June 2026—120 days of paid parental leave (equivalent to 24 weeks); and
  4. for a child born on or after 1 July 2026—130 days of paid parental leave (equivalent to 26 weeks).

The Bill, as passed by both houses, has been published to Parliament’s website here.

What Does This Mean for Employers?

The amendments are unlikely to significantly impact employers, other than having to make additional payments of the funds to an eligible employee.  Any employers who have policies or similar documents which summarise an employee’s entitlement to the Government’s paid parental leave scheme should review those documents to ensure they are up to date.  The increase does not affect the entitlement to unpaid parental leave under the National Employment Standards.

For more information about the paid parental leave scheme and your obligations as an employer, see the Services Australia website here.

If you have any enterprise agreement or contract terms dealing with employer-provided paid parental leave, these amendments are unlikely to have any effect on those terms unless the term references the government scheme or the Paid Parental Leave Act 2010 (Cth).  If you think the amendments may affect your enterprise agreement or contract terms, we recommend you seek specific advice.

Require further information/assistance?

This EMA Note is not comprehensive advice about your situation and does not cover all your obligations.  If you require further information or advice, please contact your Consultant.

 


 

EMA Consulting is not a law firm and therefore does not provide legal advice or services. The information contained within this document and associated material is general in nature and should not be relied upon. If you require specific advice on a particular matter, we recommend that you contact EMA Consulting on 08 8203 1700. Subject to the matter at hand, your EMAC Consultant may recommend that you obtain formal legal advice. If formal legal advice is required, upon your written instruction EMAC will brief your matter to a legal practitioner for this purpose. The contents of this document and associated materials do not represent legal advice.

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For more information or specific advice, please do not hesitate to contact one of our employee relations consultants.

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