Hero Image

Returning to work

Entitlements

9 May 2025 (Last updated 3 Dec 2025)

Share on:

One of the main responsibilities of employers is the health and safety of their employees at work. Employees returning from long-term absences e.g. Accident Compensation Corporation (ACC) leave, or parental leave may have specific requirements to help facilitate their safe return to work.

In this best practice guide for employers, we outline the return to work process, benefits of having a return to work policy, and ways Peninsula can help you implement these policies. Peninsula has worked with thousands of businesses and employers in New Zealand and supported them in employment relations and workplace health and safety.

Returning to work

Having an employee return to work from an extended absence can be a big adjustment for both parties. Whether an employee is returning to work from long-term parental leave, sick leave, an extended holiday or long-service leave – there are steps employers can take to make the transition back to work easy.

Employees who return to work are entitled to the same job they had before leaving, or they must return to a job similar in pay, status and qualifications. If an employee was transferred to a temporary job or reduced their hours due to pregnancy, they are entitled to continue the same job they had before the change of role or hours.

If an employee was transferred to a temporary job or alternative duties due to injury or illness, they may be entitled to return to their original duties once they are fit to work at a full capacity. Whether the employee continues the same job as they had before depended on several factors including their ability to perform the role and length of extended leave.

In general, whether an employee plans on returning to work or not, they must notify the employer about their intentions within an agreed timeframe.

Manage returning to work

Employers and employees should collaborate to ensure that the return to work process is hassle-free. Here are some useful tips for both parties to consider as part of the return to work plan:

For employees:

  • Maintain contact with the employer and colleagues while on leave. In cases of parental leave, look into options for childcare in your local area well in-advance of returning to work, speak with management about options for breastfeeding at work and write to your employer at least 21 days prior to your leave ending to confirm your intention to return to work.
  • Try to be flexible and understand that your workplace may have limits on how accommodating they can be.

For employers:

  • Maintain the desired level of communication while the employee is on leave.
  • Employers are legally required to notify the employee of major changes in the workplace that impact their employment.
  • If an employee is returning to work after parental leave, try to be flexible to accommodate the employee’s childcare routine, be open about workplace policies regarding flexible working arrangements, and ensure there are adequate facilities for breastfeeding.

Return to work plan

While the circumstances of each individual will determine the level of care they need, a return-to-work plan should:

  • Take into consideration any input from the returning employee and if appropriate a medical professional.
  • Have clear outcomes for the employee to follow in order to make their transition back to work successful.
  • Allocate the employee into a role with duties that reflect the skills available to them.
  • Provide additional training, redeployment or reasonable adjustments if they can no longer perform their pre-injury role or responsibility.

As the employee goes through the process of returning to work, employers should monitor and review progress to ensure the plan is working as intended. If there are delays to the recovery and changes need to be made, this should be done with the employee’s full cooperation and in fairness to their individual circumstances.

Parental leave and return to work

If an employee decides to not go back to work after their parental leave ends, they must tell their employer in writing at least 21 days before the parental leave ends. An employer can modify the employment agreement to increase the number of days an employee has to give notice of their intention to resign.

An employee will continue to receive their parental leave payments after notifying the employer they do not intend to go back to work.

Employees who do not go back to work will be considered to have ended their employment on the first day of their parental leave. This means the amount of holiday pay they receive in their final pay is based on this condition.

What if an employer cannot keep the job open?

An employee cannot lose their job because they applied for or went on parental leave. However, if an employee takes more than four weeks of parental leave, their original position may change if it is considered a ‘key position’ or has been made redundant.

What defines a ‘key position’ depends on the size of the business and the level of skills or training required to do that job. An employee can disagree that their job is a key position.

In cases of parental leave, if an employer cannot keep the same job open, the employee enters a 26-week period known as a ‘period of preference.’ During this time, the employer must offer the returning employee a job similar in pay, status and qualifications at the nearest given opportunity.

Returning to work early

In most cases, an employee can only return to work early or start their preference period early if the employer agrees. If the employee returning to work was caring for the child they gave birth, employers can ask for a medical certificate to ensure they are suitable to work.

An employee can return to work without permission from an employer if:

  • The employee, their spouse or partner is no longer a primary carer of the child
  • The child was stillborn, miscarried or died

Employees must give at least 21 days’ notice (from the desired date of wanting to go back to work) of their intention to return early.

For advice on how to manage employees who are returning to work after parental leave, contact Peninsula.

This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.

Have a question?

Have a question that hasn't been answered? Fill in the form below and one of our experts will contact you back.

By clicking submit you consent to our Privacy Policy

Related Guides

Entitlements

Resignation

If you are a small business owner or employer, resignations are going to be a part of your business and life. Anytime an employee resigns, it is an important moment in the business as the resignation will kickstart a process including the notice period. Resignation is the termination of employment initiated by the employee. That is, the employee voluntarily ends employment and communicates that decision to the employer. When an employee resigns, they may have to give written notice via a letter (or email) to their employer. The employee will provide a period called the notice period to transfer their duties and responsibilities. The notice period acts as a safeguard and protection for the business and allows the employee to transition out of their role. The resignation process When an employee resigns, there are many things you need to do. The first step is for the employee to officially announce their resignation in writing. In this resignation letter, they will mention their date of resignation, their expected notice period, and their last day of employment. They will include details of any other projects or equipment they need to hand over. Ideally, the employee would have discussed all of this with you verbally or with the hiring manager. On or before the employee’s final date of employment, you can request the employee to: Return all property of the business (including keys, documents, information technology equipment, intellectual property). Remove hard copy and electronic personal and confidential files. Inform supervisor/s of any passwords/codes to access computer files. What are notice periods? The notice period: Starts the day after the employee gives their employer notice in writing via email or a letter that they want to end their employment. Ends on the last day of employment. Forming a part of the offboarding process, the notice period helps the employee and the company acclimatise to the resignation and shift in responsibilities. Notice periods can be tricky as their duration is not standardised across all roles. Having an offboarding or resignation policy in place can benefit you during such times. Notice required when resigning If an employee has resigned or been dismissed, they need to give notice. The required notice period will depend on their award, registered agreement, or contract. An employee can give more notice than what is outlined in the applicable award, registered agreement, or contract. If the employer does not want the employee to work the notice period or wishes to shorten it, they would need to agree with the employee to the shorter notice including waiving notice. If you are an employer, you cannot unilaterally substitute the proposed notice period by an employee for a shorter one, even if it’s according to the award or employment contract. Doing so constitutes the employer terminating the contract and therefore would have unfair dismissal risks attached. If the employer pays out the notice period, the employee’s employment ends on the date that payment is made. In that case, the employee doesn’t stay employed during the notice period (or continue to accrue entitlements, such as annual leave). If the employer doesn’t pay out any part of the notice period, the employee stays employed for the entire period. Employment can’t end on a date earlier than the day the notice is given. The notice period must be paid out before the termination is effective. An employee’s award, employment contract, enterprise agreement, or other registered agreement sets out: How much notice (if any) the employee has to give when they resign. When an employer can withhold money if the employee does not give the minimum notice period. Taking money out of an employee’s pay before it is paid to them is a deduction. An employer can only deduct money if: The employee agrees in writing and it’s principally for their benefit. It’s allowed by a law, a court order, or by the Fair Work Commission. It’s allowed under the employee’s award. It’s allowed under the employee’s registered agreement and the employee agrees to it. Most awards say that in certain circumstances an employer can deduct up to one week’s wages from an employee’s pay if they do not provide the minimum amount of notice. Where an award allows this, an employer can only deduct pay from an employee’s wages under the award, not from other entitlements. Although, you must follow the requirements in the industrial instrument, such as the employee must be over 18 years of age; and the employer may deduct from wages due to the employee under the relevant award that is no more than one week’s wages for the employee. Also, any deduction made must not be unreasonable in the circumstances. Final payments on resignation Final pay is what an employer owes an employee when their employment ends. An award, employment contract, enterprise agreement, or other registered agreements can specify when the final payment must be made. If it does not, the best practice is for an employee to be paid within 7 days of their employment ending, or on the next scheduled payday. An employee should get the following entitlements in their final payment: All outstanding wages for hours worked, including penalty rates and allowances Any accumulated annual leave and, if applicable; annual leave loading – i.e. if it would have been paid during employment. Accrued or pro-rata long service leave – depending on the relevant state or territory legislation. Sick or carer’s leave is generally unpaid when employment ends unless an award, contract, or registered agreement says otherwise. Updating employment records You should have a clear HR policy around resignation and dismissal. This policy should outline the process, next steps, and responsible parties. A key part of this process should involve having updated employment records. The employee’s resignation letter should be stored in the employee’s personnel file. As part of the record-keeping requirements under the Fair Work Act 2009, the file should contain details of the notice period, and in what circumstances the employee resigned. This file should remain private and confidential.  Generally, no one can access these records other than the employee, their employer, and relevant payroll staff. If requested by the employee, or the former employee to whom the record relates, or the Fair Work Ombudsman, employers must make copies of these records available. Manage resignation and notice periods Running a small business is no small task. You need to know latest rules and policies around staff management, performance, resignation, and dismissal. We have supported thousands of business owners with policies, resources, and tools for their business. Contact Peninsula today to learn more about resignation policies, entitlements, and calculating correct final payments.

Do you have any questions regarding Entitlements?