The birth or adoption of a new child is an exciting time for soon-to-be parents. Naturally, employees may want to take some time off work to care for their new child, while remaining financially secure. Time off work to look after a new baby or child in their care is known as ‘parental leave.’
In this guide we discuss eligibility for paid parental leave and potential alternatives an employee can consider.
Who is eligible for parental leave?
An employee can be eligible for parental leave if:
- They are an expectant mother
- They will be a new mother of a child under one
- They have new permanent primary responsibility for a child under 6 and be any of the following: an adoptive parent, a Home for Life parent, a matua whāngai (whāngai carer), a grandparent with full-time care, a permanent guardian
- They are employees with a partner or spouse who has given birth
- They are employees who have assumed permanent care of a child who is under the age of six.
Additionally, to qualify for paid parental leave, an employee must meet either the 6-month or the 12-month test criteria.
6-month test criteria:
- The employee must have worked for the same employer for an average of at least 10 hours a week for the 6 months before the expected due date.
12-month test criteria
- The employee must have worked for the same employer for an average of at least 10 hours a week for the 12 months before the expected due date.
Types of parental leave
There are five types of parental leave available with various rules for eligibility:
- Primary carer leave – If the employee meets the 6-month or 12-month criteria test and is the primary carer in respect of the child. They will be entitled to 26 weeks of primary carer leave.
- Special leave – A pregnant employee is entitled to 10 days of unpaid leave for reasons connected to the pregnancy.
- Partner’s leave – Unpaid leave for the spouse or partner of the primary carer. If the partner meets the 6-month test, they are eligible to one week of unpaid leave. If they meet the 12-month test, they are eligible for two weeks of unpaid leave.
- Extended leave – A primary carer or their partner can take extended leave after primary carer leave. The length of extended leave will depend on the 6-month or 12-month test. This can also be shared between the primary carer and the partner.
- Negotiated carer leave – if the employee does not meet either test but are entitled to parental leave payments through the Inland Revenue Department (IRD), they can make a request to the employer to take negotiated carer leave.
Applying for parental leave
Before submitting an application to the IRD, Employees must give formal notice of their intention to take parental leave. To avoid confusion and misunderstanding, this request should be submitted in writing and contain the following information:
- Evidence of the expected due date or intended date of assuming permanent care
- The type of leave the employee wants to take
- The date the parental leave will start
- When the parental leave will end
- If the employee wishes to take extended leave, details regarding if the employee’s spouse or partner intends to take any period of extended leave or primary carer leave and the dates of such leave.
In the case of a pregnancy, this notice must be given at least three months before the baby’s expected due date.
Where the employee is assuming permanent care (for example, adoption) of a child under six, this notice must be provided at least 14 days before the date they intend to assume care. You will also be required to provide the following:
- A certified copy of a court order placing the child in your care or custody
- A copy of a letter from the chief executive of the Ministry or organisation who has custody of the child, confirming that you are (or will be) the child's primary carer, or
- A copy of your application for a parenting order or adoption order (if you’ve made one) and a statutory declaration.
Responding to parental leave requests
Employers must respond to an employee’s application for parental leave within 21 days of receiving the request. The response must include:
- Whether the employee is entitled to parental leave and reasoning if not.
- Whether the employee’s position will be kept open.
- Specific information about parental leave entitlements as outlined in legislation.
An employer must also provide a letter confirming the details of the employee’s parental leave within 21 days of the employee going on leave. This should contain the following:
- When parental leave will end.
- The return to work date.
- A reminder that their job is being kept open.
- that the employee must provide at least 21 days' notice if they want to make any changes to their return to work.
Key things to remember for employers
Employees can get paid parental leave if they resign or stop working instead of taking time off.
If an employee is due to give birth but does not qualify for paid parental leave, they may request for leave without pay or negotiated carer leave.
The employee and their partner can share their parental leave and they need to determine who the primary carer will be. In most cases, the birth mother will be the primary carer. However, she can transfer all or some of her parental leave entitlements to her partner if:
- They both meet the parental leave payment test for either employees or self-employed people, and
- The partner will be stopping work to have the primary responsibility for the day-to-day care of the child, while receiving the parental leave payment
- If the birth mother or partner are not giving birth to the child, they will need to decide who will be the primary carer.
Parental leave policy
While paid parental leave is a Government-funded entitlement, employers should have their own parental leave policy tailored to the needs of the business and its employees. The policy should inform employees who they must notify when applying for parental leave, explain the criteria, and confirm the minimum legal obligations that employers must follow. Documenting and clarifying the policy in the employee handbook can help avoid misunderstandings, and help employees feel supported.
Importantly, if an employer chooses to offer a policy that is over and above the Government policy, the employment agreement must contain the following information:
- Who can take parental leave
- When parental leave can be taken
- Timeframe of leave
- How well the job is protected during the leave
- Remuneration during leave
- Process for application and procedures to follow
Get help with parental leave today
Managing a business comes with its set of complications. You need to manage staff, look after hiring, and deal with leave entitlements such as parental leave. Parental leave in New Zealand is complex and busines owners need to be aware of their obligations. Talk to our team today to understand your responsibility when it comes to parental leave.
For advice on parental leave eligibility in the workplace, contact Peninsula.