Last year, the Australian Government introduced significant changes to unpaid parental leave, with legislation providing for a staged increase to flexible unpaid parental leave over several years.
From 1 July 2023, eligible employees became entitled to 100 days of flexible unpaid parental leave. From 1 July 2024, the next phase of those reforms has now taken effect, increasing the entitlement to 110 days.
If you employ staff, here’s what has changed and what it means for your business.
From 1 July 2024, the flexible unpaid parental leave entitlement has increased from 100 days to 110 days.
The additional flexibility allows employees to spread more of their unpaid parental leave over the first two years of their child’s life, rather than taking it all as one continuous block.
The change forms part of the Government’s staged reforms to better support modern families and encourage workforce participation.
Rather than simply thinking about parental leave as one long absence, it’s worth considering how your business manages employees who may move between periods of work and leave over a longer timeframe.
Make sure your policy reflects the updated entitlement of 110 flexible days.
The earlier you understand how your employee intends to use their leave, the easier it is to plan temporary cover and workloads.
Managers don’t need to know every detail of the legislation, but they should understand that parental leave is becoming increasingly flexible and know where to seek advice if questions arise.
These changes continue the shift towards more flexible workplaces and recognise that every family’s needs are different.
Taking the time to review your policies now will help ensure your business remains compliant while supporting your employees through an important life event.
