Employers play an important role in the Paid Parental Leave scheme.
Your employees may approach you to take leave so they can get Parental Leave Pay or Dad and Partner Pay. However, it’s important to know that the Paid Parental Leave scheme doesn’t give your employees a new entitlement to leave.
Your role with Parental Leave Pay
It’s up to your employee to apply for Parental Leave Pay through us and negotiate leave arrangements with you. To get Parental Leave Pay, your employee must be on paid or unpaid leave.
We’ll contact you if you’re required to provide Parental Leave Pay to an employee. We’ll also provide the necessary Paid Parental Leave funds to you.
As an employer, you must provide Parental Leave Pay to an eligible employee who:
- has a newborn or recently adopted child
- has worked for you for at least 12 months before the expected date of birth or adoption
- will be your employee until at least the end of their Paid Parental Leave period
- is Australian based, and
- is expected to receive at least 8 weeks of Parental Leave Pay
If your employee doesn’t meet the above criteria, you aren’t required to provide Parental Leave Pay. However, if you both agree, you can still choose to provide it to your employee if they’re eligible. You need to register for Centrelink Business Online Services and then opt in to provide Parental Leave Pay before your employee submits their claim.
You do not need to provide Parental Leave Pay to an eligible employee who:
- claims Parental Leave Pay for a child who is born or adopted on or after 1 October 2016, and
- receives an income support payment from us during the same period for which they receive Parental Leave Pay
We’ll provide Parental Leave Pay directly to eligible parents who don’t receive it from their employer.
If we decide you must pay Parental Leave Pay
If we decide you must administer an employee’s Parental Leave Pay, you must:
- accept our decision that you are to provide Parental Leave Pay or seek a review within 14 days
- have an Australian Business Number (ABN)
- provide us with your bank account details and your employee’s pay cycle details, which will ensure you can receive the funds on time
- provide Parental Leave Pay to your employee for their Paid Parental Leave period, as per their usual pay cycle
- withhold tax from Parental Leave Pay under the usual Pay As You Go (PAYG) withholding arrangements
- provide your employee with a record of Parental Leave Pay, for example, a payslip, within 1 working day of your employee receiving their pay
- include Parental Leave Pay in the total amounts on your employee’s annual or part year payment summary
- keep records of funds you have received from us, and details of amounts paid to your employee
- return any unpaid funds to us, and
- let us know if the following occurs in an employee's Paid Parental Leave Period
- your employee returns to work
- your employee is no longer employed by you
- your bank account or your employee’s pay cycle details change
- you receive an incorrect amount or are unable to provide Parental Leave Pay, or
- your business details change - you are ceasing to trade, selling your business, transferring ownership or merging with another business
You don’t need to:
- fund Parental Leave Pay
- work out if your employee is eligible
- provide Parental Leave Pay to your employee before you have received funds from us
- make additional superannuation contributions
- pay additional worker’s compensation premium liabilities
- pay additional payroll tax
- accrue additional leave for employees
- create a new bank account
- provide regular reports to us, or
- separately identify Parental Leave Pay in your annual financial statements
Read more about employers providing Parental Leave Pay.
Your role with Dad and Partner Pay
With Dad and Partner Pay, you only need to be aware that your employee may approach you about taking unpaid leave so they can receive Dad and Partner Pay. You don't administer Dad and Partner Pay. We'll always pay your employee directly.
It's up to your employee to apply to us for the payment and to negotiate leave arrangements with you. To get Dad and Partner Pay, your employee must be on unpaid leave.
You may choose to pay your employee a top-up payment to supplement their Dad and Partner Pay. For example, you may decide to pay the difference between your employee’s Dad and Partner Pay and their normal wage. A top-up payment isn't considered paid leave for the purposes of Dad and Partner Pay eligibility.
Get the Employer Toolkit
The Employer Toolkit is your complete guide to the Paid Parental Leave scheme and what you need to do.