jmhThe Government-funded Paid Parental Leave scheme (PPL scheme) commenced on 1 January 2011. From 1 July 2011, employers have been required to facilitate the payment of paid parental leave (PPL) through their payroll.

Who is eligible?

Employers are not responsible for determining whether a person is eligible; the assessment is completed by the Family Assistance Office (FAO)

In order to be eligible the employee must meet certain criteria, including a carer test and work related tests.

How does it work?

The scheme provides eligible working mothers and initial primary carers of children born or adopted on or after 1 January 2011 with PPL for the duration they are not working, to a maximum of 18 weeks at the national minimum wage.

PPL payments will be paid in ‘instalments’ where possible on the employee’s regular pay day, however an employer is not obliged to make an instalment until they have received the amount due to be paid from the FAO.

Employer obligations

An employer’s obligations include:

  • pay instalments to the employee when the funds have been transferred from the FAO and, where possible, in accordance with the employee’s usual pay cycle
  • not withhold unauthorised deductions
  • comply with all of its other obligations, including those which might arise under an industrial instrument, contract of employment or other law — for example, annual or long service leave.
  • provide a pay slip to the employee in the same manner as usual and in accordance with normal pay slip requirements
  • make and keep records for 7 years for each person who receives PPL pay
  • notify FAO in writing as soon as practicable if any relevant business changes happen — for example bank details, payroll dates, ceasing of business, person ceases to be employed (for example, is made redundant), person returns to work, and if any underpayments or overpayments of PPL instalments occur.

How Everingham Solomons can help

If you think your business could benefit from a Paid Parental Leave policy, contact the employment law team at Everingham Solomons where Helping You is Our Business.

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