On 12 May 2010, the Paid Parental Leave Bill 2010 (Bill) was introduced in the House of Representatives at Canberra. The expected date of commencement will be 1 October 2010.
Fundamental criteria:
Some elements:
Payment of the entitlement
The Family Assistance Office will advise an employer if they are required to provide the payment to the employee. The funding for paid parental leave will be made in instalments from the Family Assistance Office to the employer.
It will be the responsibility of the employer to pay the leave, funded by the Family Assistance Office, to the employee. However, employers will only be required to pay their long-term employees, these being the employees with over 12 months service prior to the day of leave requested. Further, the employer is under no obligation to pay the leave to an employee if the employer has not received sufficient funding from the Family Assistance Office.
Compliance with the Act
The Bill gives power to the Fair Work Ombudsman to investigate breaches and commence proceedings where applicable with potential penalties from $3,300 to $33,000 per offence.
Next steps
The Bill was read for the first time in the House of Representatives on 12 May 2010. The Bill has now been referred to the Senate Community Affairs Legislation Committee with a report due on 3 June 2010. With the Federal Opposition proposing parental leave in excess of 18 months, it is likely that the Bill will receive assent at least for the 18 weeks proposed.
Employers should prepare for this Bill by:
If you have any questions about the Bill or its prospective application, please contact Ian Curlewis, Partner, on (08) 9288 6756 or ian.curlewis@lavanlegal.com.au or Michael Jensen, Senior Associate, on (08) 9288 6944 or michael.jensen@lavanlegal.com.au