On 1 January 2011, the Federal Government’s paid parental leave scheme became law in all Australian workplaces.

It’s one of the biggest changes to workplace law in a long time – and it’s imperative that you make sure your business is up to speed with all its new obligations.

But there’s no need to worry – the Employment Law Practical Handbook will help you ensure your business is completely up to date with all its new requirements.

For example, here are 5 things your business must know now about paid parental leave:

1. 1. All eligible employees who are parents of children born or adopted on or after 1 January 2011 are entitled to receive 18 weeks of paid parental leave at the Federal Minimum Wage rate (which since 1 July 2011, is $589.30 per week before tax).
2. To be eligible for the scheme, an employee must:

• have worked at least 10 of the 13 months prior to the birth or adoption of the child, with no more than an 8-week gap between 2 consecutive work days;
• have worked for at least 330 hours of paid work in that 10-month period (which is just over one day of paid work a week);
• not have worked between the date of birth or adoption of the child and their nominated start date for PPL;
• have an income of $150,000 gross or less in the financial year prior to the birth or adoption of the child or the date of their claim, whichever is earlier (indexed in line with the baby bonus); and
• be an Australian resident.

3. The scheme is funded by the Federal Government, but you will be required to pay eligible employees via their usual payroll cycle. In other words, you will pass on PPL payments to employees in the same way you would pay wages. If you are required to provide PPL to one of your employees, you will be contacted by the Federal Department of Human Services’ Family Assistance Office and asked to provide them with information, including your:

• business bank account details;
• employee’s pay cycle details;
• business name;
• Australian Business Number (ABN); and
• contact details.

This will ensure that you receive the PPL funds from the government (to pass on to your employee).

4. PPL is separate and additional to any other obligation you may have in relation to parental leave. The PPL scheme will have no effect on a pre-existing right your employees have to paid parental leave, or paid annual leave or long service leave. You must pay these entitlements in full, regardless of whether the employee is entitled to, and receiving, PPL. Further, you cannot offset PPL against any leave benefits that you are legally required to provide employees.
5. Paid parental leave doesn’t count for the purposes of superannuation guarantee contributions, payroll tax or workers’ compensation premiums.

Remember, even though the money for paid parental leave won’t be coming out of your pocket, you’re still legally responsible for ensuring your employees receive their entitlements.

But there’s no need to worry, because the Employment Law Practical Handbook will show you everything you need to know about paid parental leave.

By taking a free trial of the handbook, you’ll find the following practical information (along with much more!) in chapter L7 Parental Leave:

• 6 ways the National Employment Standards have affected your employees’ parental leave entitlements… more information on Page L7/4
• The 3 essential steps you must take when directing an employee to take unpaid parental leave – if you don’t take them, you could be held liable… more information on Page L7/13
• A 5-point checklist to help you know exactly what to do if a pregnant employee wishes to work in the 6-week period before the expected birth date… more information on Page L7/21
• How paid parental leave will affect your employees’ unpaid parental leave rights under the Fair Work Act… more information on Page L7/24
• How paid parental leave rights can be transferred between primary carers… find out on Page L7/24