If you employ staff, there’s an important update to unpaid parental leave that you should have on your radar.
From 1 July 2023, significant changes have come into effect, increasing the amount of flexible unpaid parental leave available to eligible employees.
Previously, employees could access 30 days of flexible unpaid parental leave. That entitlement has now increased to 100 days, giving families much greater flexibility in how they balance work and caring responsibilities during the first two years after the birth or adoption of a child.
This is the first stage of a series of planned reforms, with further increases already legislated over the coming years.
Here’s what has changed and what it means for your business.
From 1 July 2023, eligible employees can now access 100 days of flexible unpaid parental leave, replacing the previous entitlement of 30 days.
The flexible leave forms part of an employee’s existing unpaid parental leave entitlement and can be taken as individual days or separate periods of leave within the first 24 months after the birth or placement of a child.
This gives employees significantly more flexibility than the previous arrangements, where only a smaller portion of their leave could be taken flexibly.
The increase is the first step in a staged expansion of flexible unpaid parental leave, with further increases already scheduled for 1 July 2024, 1 July 2025, and 1 July 2026.
The increase from 30 to 100 days is a significant change and may mean you receive parental leave requests that look very different from what you’ve managed in the past.
If your parental leave policy still refers to employees being able to take 30 days of flexible unpaid parental leave, it’s time for an update.
Review your policies and employee handbook to ensure they reflect the new 100-day entitlement and explain how flexible unpaid parental leave can be accessed.
With employees now able to access a much larger portion of their unpaid parental leave flexibly, planning ahead is more important than ever.
Talk with your employee about how they intend to use their leave, whether they expect to return to work before using all of their flexible leave, and what support they may need throughout the process.
Having these conversations early will help you plan workloads, organise temporary cover and minimise disruption to your business.
Traditionally, parental leave was often viewed as one continuous period away from work.
Now, an employee may choose to return to work before using all of their flexible unpaid parental leave, or spread periods of leave across the first two years after their child is born or adopted.
Understanding these options will help you respond confidently when discussing leave arrangements with your employees.
Managers are often the first people employees approach when discussing parental leave.
Make sure they understand the updated entitlement and know where to seek advice if they’re unsure how the new arrangements work.
Providing consistent information helps create a positive experience for both your employees and your business.
✔ Review your parental leave policy and update any references to the previous 30-day flexible leave entitlement.
✔ Ensure your employee handbook and HR documentation reflect the new 100-day entitlement.
✔ Talk with your managers so they understand the changes and can confidently support employees.
✔ Encourage early conversations with employees about how they intend to use their parental leave.
✔ Keep an eye on future legislative updates, with further increases already scheduled over the next three years.
The increase from 30 days to 100 days of flexible unpaid parental leave is one of the most significant changes to parental leave in recent years.
While it gives employees greater flexibility to manage work and family responsibilities, it also provides businesses with an opportunity to adopt more flexible and supportive workplace practices.
Taking the time to review your policies and plan ahead now will help ensure you’re prepared for these changes—and for the further increases already planned.
If you’re unsure whether your parental leave policies reflect the latest legislation, or you’d like help reviewing your HR documentation, the Aster HR team is here to help.
