If you employ staff, there is an important change to unpaid parental leave that you should have on your radar.
From 26 November 2020, the Fair Work Act has been amended to introduce greater flexibility for employees taking unpaid parental leave. Eligible employees can now take up to 30 days of their 12-month unpaid parental leave entitlement flexibly within two years of the birth or adoption of their child.
This means parental leave no longer has to be viewed only as one long continuous block away from work.
Here’s what you need to know.
Previously, unpaid parental leave was generally taken as one continuous period.
Now, eligible employees can take up to 30 days of unpaid parental leave flexibly.
Flexible unpaid parental leave can be taken as:
The remaining parental leave is still taken as one continuous period.
The 30 days comes out of the employee’s existing 12-month unpaid parental leave entitlement. It is not an additional 30 days of leave.
For many families, one continuous period of leave does not always provide the flexibility they need.
An employee may want to return to work earlier, then use flexible unpaid parental leave later for childcare transitions, medical appointments, family needs or simply to ease back into work.
The introduction of flexible unpaid parental leave doesn’t mean employees can simply take leave whenever they like without notice.
However, it does mean you should be prepared for requests that may look different from what you’ve experienced in the past.
Previously, many employers considered parental leave “finished” once someone returned.
Now, an employee may return to work and later request some of their remaining flexible unpaid parental leave within the child’s first two years.
This could be for childcare transitions, family commitments or other caring responsibilities.
That means parental leave planning may now extend beyond the employee’s initial return-to-work date.
While employees now have greater flexibility in how they take unpaid parental leave, they’re still required to provide notice of their intended leave arrangements.
In most cases, employees should advise you of the number of flexible unpaid parental leave days they intend to take when they provide notice of their parental leave, or at least 10 weeks before the leave starts.
That advance notice gives you an opportunity to plan ahead. Talk with your employee about how they intend to use their leave, what support they may need, and how you can manage workloads, temporary cover and scheduling while they’re away.
Like many workplace changes, early communication is key. While plans may evolve as family circumstances change, having an open conversation from the outset makes it much easier to balance your employee’s needs with the operational needs of your business.
Many workplace policies were written before these changes came into effect.
If your policy only refers to one continuous period of unpaid parental leave, it may no longer reflect current legislation.
Updating your policy now helps ensure everyone understands their entitlements and reduces confusion later.
Managers are often the first point of contact when employees have questions about parental leave.
They don’t need to be employment law experts, but they should understand that unpaid parental leave is now more flexible than it once was and know where to seek advice if needed.
The introduction of 30 days of flexible unpaid parental leave reflects the changing needs of today’s workforce.
For your employees, it provides greater flexibility during one of life’s biggest transitions.
For your business, it’s an opportunity to create a more supportive workplace while planning ahead to minimise disruption.
Understanding these changes now means you’ll be well prepared when an employee comes to you to discuss their parental leave options.
If you’re unsure whether your parental leave policy reflects the latest legislation, or you’d like help reviewing your HR documentation, the Aster HR team is here to help.
