Australia: Paid Parental Leave Bill Makes its First Appearance
Workplace Relations Update

On 12 May 2010, the long awaited Paid Parental Leave Bill 2010 (Bill) was introduced into the federal parliament.

The Bill seeks to establish, for the first time in Australia, a uniform paid parental leave scheme (Scheme) which will enable eligible primary carers to receive 18 weeks of paid parental leave at the national minimum wage.

Under the Bill, the Scheme will be available to primary carers who have or adopt a child on or after 1 January 2011 and who can satisfy the work, income and residency tests. In particular, a parent will be eligible for paid parental leave if the person applying for the leave:

• has worked for a total period spanning at least 10 of the 13 months prior to the expected birth or adoption of the child with a break of no more than eight weeks between any two consecutive work days
• has undertaken at least 330 hours of paid work during the 10-month period (an average of around one day of paid work a week)
• has an income of $150,000 or less (to be indexed annually from 1 July 2012) in the financial year before the claim or birth of the baby, whichever is the earlier
• is living in Australia and is an Australian citizen or permanent resident (although there are some exceptions).

The Scheme will be funded by the federal government but administered by employers through their own payroll systems. The Scheme is intended to compliment (as opposed to replace) paid parental schemes that employers already offer to their employees.

The Bill has been referred to the Senate Community Affairs Legislation Committee (Committee) for review and inquiry. The Committee's report on the Bill is due on 3 June 2010.

Implications for employers

Employers may wish to start reviewing or preparing their own parental leave schemes in light of the pending legislation. Employers should also follow the progress of the Bill closely.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.