Guide for employees

[upbeat music] Parental leave can be one of those things that you haven't thought about until you, or perhaps one of your employees, needs it. It's an important topic, but a lot of us don't really understand how it works. Initially, parental leave was designed to protect employees starting a family so that they had time off and their job was still there when they returned to work. Later down the track, the law was updated so that people taking parental leave or stopping work could also receive a payment from IRD for that time off if they were eligible. We know parental leave can sometimes feel confusing, but don't worry, we are going to break it down for you so that you know the basics.

Yes, that's right. We're going to talk about the differences between parental leave and parental leave payments, and help you navigate the eligibility criteria for each. [upbeat music]

Let's start with a situation where someone is a pregnant primary carer, and know their expected date of delivery, or EDD. This is the date when a medical practitioner or midwife calculates that a pregnant primary carer will give birth, and it is crucial for determining eligibility for both leave and payments.

Exactly. The EDD is a key factor in the Parental Leave and Employment Protection Act 1987. It's the official due date as diagnosed by a medical professional. For other situations like adoption, parental leave and payments aren't based on the EDD. They're based on the dates someone becomes the primary carer by taking permanent primary responsibility for the care, development, and upbringing of a child who is under the age of six years. In surrogacy situation, the person who gave birth, also known as the biological mother or surrogate, and the new primary caregiver are fully entitled to both parental leave payments and parental leave from work if they meet the eligibility criteria. So the person that gave birth’s entitlements doesn't end when they hand over the care of their child. [upbeat music]

Now let's talk about parental leave from work and eligibility. The Parental Leave and Employment Protection Act 1987 provides for leave from work for birth mothers, their partners, and other situations where someone becomes the primary carer of a child under the age of six. There are different types of leave, including; primary carer leave, extended leave, partner's leave, negotiated carer leave, and special leave. All of these leave types are separate from the parental leave payments. The Employment New Zealand website has a lot of information about each leave type.

The length of parental leave varies depending on how long the person has been working for the employer. If an employee has worked for the same employer for at least an average of 10 hours a week in the 6 to 12 months before the EDD or date they become primary carer, they'll be entitled to parental leave. If they've been with the employer for at least 6 months, they'll be eligible for up to 26 weeks of parental leave, which is usually taken as 26 weeks primary carers leave. If they've been with the employer for 12 months or more, they'll be entitled to up to 52 weeks of parental leave, which is usually taken as 26 weeks primary carers leave, and then a further period of up to 26 weeks extended leave. [upbeat music]

Okay, that's the leave. Let's move on to the parental leave payments. The Act also provides payments for up to 26 weeks of parental leave, and in some cases, a period of preterm baby payments.

That's right. To be eligible for parental leave payments, there are specific test criteria for employees and self-employed primary carers. For employees, they must have been employed for at least an average of 10 hours a week for any 26 weeks of the 52 weeks immediately before the EDD in the case of a person giving birth or the spousal partner, or the date they become the primary carer for other arrangements such as adoption. Isn't that right, Kate?

Yeah, absolutely. So for a self-employed individual, they need to have been self-employed for at least an average of 10 hours a week for any 26 of the 52 weeks before the EDD in the case of a person giving birth or their spousal partner, or the date they became the primary carer for other arrangements such as adoption. If you are eligible for parental leave payments, you will need to apply for these through IRD. When receiving parental leave payments, it is super important that you do not continue working for any employer or your own business. Otherwise, the parental leave payments will stop. For an employee, if your employer agrees, you may be able to perform ‘keeping in touch days’ up to a maximum of 64 hours of paid work after the first 28 days of the child being born.

And there you have it. We've covered the basics of parental leave, including leave types, eligibility criteria, and payment requirements.

We really hope that we've cleared a few things up. If you're looking for more information, make sure you check out the Employment New Zealand website. The Employment New Zealand website has a lot of information and resources, including parental leave eligibility tool and a parental leave and payment eligibility table that can be used to work out what you may be entitled to. [upbeat music]