From 1 July 2020, eligible employees can now choose to split their Parental Leave Pay (PLP) so they take it over 2 separate periods within 2 years.
Employees can claim PLP for 1 set period of 12 weeks. This needs to be used within 12 months of the birth or adoption of a child, and can’t be split into more than 1 period.
Then they can choose 1 flexible period.The flexible period is:
– up to 30 days.
– usually starts after the first period has ended.
– can be used in flexible periods negotiated between the employee and employer.
– has to be used within 24 months of a child’s birth or adoption.
Previously, employees could only use PLP as one continuous 18 week period. Employees may still choose to take PLP for a set 18 week period.
To be eligible for PLP, employees must:
- be the primary carer of a newborn or newly adopted child
- have individually earned less than $150,000 in the last financial year
- not be working during your Paid Parental Leave period
- have met the work test in the 13 months before the child’s birth or entry into care.
Other specific details may apply in particular circumstances.
PLP continues to usually be paid by the employer, reimbursed by Services Australia. Where employers also provide paid parental leave options, PLP eligibility still applies.
If you’re unfamiliar with how to manage PLP arrangements with your employee, get in touch with our Workplace Partners to discuss your specific needs.
*This is general information only and doesn’t take your specific circumstances into account.