Changes to the Parental Leave Scheme
As of 1 July 2023, the Fair Work Commission will be introducing new changes to the Paid Parental Leave scheme. The main component is the merging of paid parental leave with the current Dad & Partner Pay, resulting in a combined entitlement of 20 weeks’ pay.
Before we explore the new changes, here is a brief summary of the current parental leave scheme:
Up to 18 weeks of Paid Parental leave is typically provided to either the birth mother of a newborn child or the primary carer of a recently adopted child.
Additionally, the scheme grants up to 2 weeks of Dad and Partner Pay.
What is changing?
The paid parental leave scheme is undergoing several modifications aimed at enhancing flexibility and expanding eligibility.
The main changes are as follows:
Paid Parental Leave and Dad and Partner Pay entitlements are merging, providing a single 20 week scheme to be shared between the parents.
Parents can decide how they wish to split the leave and can use up to 10 days at the same time.
Parents can access the leave in multiple blocks of at least one day at a time, up to two years from the birth of adoption of their child.
This applies for parents caring of a child who is born or adopted from 1 July 2023.
Next steps for employers
Update policies and procedures to align with the revised scheme.
Communicate with employees about the updated parental leave scheme, including the revised entitlements, eligibility criteria and any procedural changes.
Review internal processes to accommodate the new changes and ensure compliance with the updated scheme.
Update payroll systems to ensure accurate calculation and payment of parental leave benefits according to the new scheme.
How Infinity HR can support you
We can assist you with reviewing your employment contracts and other written agreements to ensure that your organisation does not breach the new pay secrecy provisions.