Employers and Paid Parental Leave

The Paid Parental Leave ( PPL) scheme has been designed to impose minimal new costs on employers.

Employers will be responsible for making PPL payments only where the employee has completed 12 months continuous service prior to the date of birth or adoption of the child.

The Family Assistance Office will ensure that employers receive the required Government funds in advance of
their making PPL payments to the employee in their usual payroll cycle.

As is the case now, parents will generally notify and agree leave arrangements with their employer before they commence leave prior to the birth or adoption of their new child. This will include parents notifying their employer when they wish to receive their PPL payments (see part 7 for further information on parents being able to choose when they wish to take their PPL entitlement).

Employers will not be required to make superannuation payments for Government PPL. Employees will not accrue leave entitlements during a period of Government PPL.

It is estimated that employers will make payments to around 100,000 employees eligible for PPL each year, mostly in larger businesses. The Productivity Commission estimated that only around 4 per cent of small businesses would make payments under the scheme in any given year.

The Government will consult with business organisations and employers to help make the new PPL arrangements as simple as possible for employers. The consultations will take place during the second half of 2009 in the early stages of the scheme’s implementation

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(Source: Department of Families, Housing, Community Services and Indigenous Affairs)

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