Developing a Leading Practice Parental Leave Policy

1 Developing a Leading Practice Parental Leave PolicyA guide for employersFebruary 2022 SummaryModern Parental Leave policies complement inclusive, family-friendly workplace practices and promote a more sustainable work-life balance for both women and men. A Leading Practice Policy can guide leaders in supporting their employees to balance their career with family many employees, combining work with caring responsibilities is a part of everyday life. In 2018, families with two working parents are now more common than the more traditional family structure where only one parent participates in paid employment.* Despite the changing structure of family life, women are still far more likely to identify as the primary carer of a When employers encourage men to engage in the care of children, they help counter the disproportionate amount of responsibility that women currently The Paid Parental Leave Act (2010) introduced a paid Parental Leave (PPL) scheme in Australia on 1 January 2011.

2 The legislation adopted a gender-neutral approach to the designation of the primary and secondary carer roles. However, underutilisation by men indicates that attitudes and workplace culture have not substantially shifted to reflect the legislative Male parents in heterosexual relationships are far more likely to identify as a secondary carer and take a much shorter period away from This reinforces the gendered stereotype that women are the natural primary carers of young is research that suggests when parents take long periods of Leave to care for children, sharing care work between women and men is normalised within wider Changing attitudes about the distribution of work at home and in the workplace is a key driver for achieving gender Parental Leave in AustraliaThere are two types of paid Parental Leave in Australia: employer-funded Leave and the Australian Government administered PPL Australian Government s PPL scheme is designed to complement existing workplace entitlements including access to unpaid Parental Leave under the National Employment Standards (NES) for eligible employees.

3 This guide only focuses on Developing an employer-funded Parental Leave Policy . Information on the Australian Government s PPL scheme can be found on the Department of Human Services website. Information on the provisions of the NES can be found on the Fair Work Ombudsman s website. It is recommended that employers familiarise themselves with the minimum legislative requirements regarding Parental Leave . This includes considering the interaction between the relevant legislation and arrangements applying to their employees (such as an enterprise agreement, contract of employment and/or workplace Policy ). Please note that federal, state and territory anti-discrimination laws make it unlawful for an employer to discriminate against an employee on various grounds including sex, pregnancy, breastfeeding and family responsibilities.

4 It is also unlawful for an employer to take adverse action against an employee for reasons related to their pregnancy or their entitlement to Parental Leave . For further information, visit the website of the Australian Human Rights Commission, the Fair Work Ombudsman or the relevant anti-discrimination/equal opportunity body in a particular state or territory. * The evolution of the Australian family s engagement with the workforce over the years can be mapped via the Australian Bureau of Statistics website: Cat. workplace Gender Equality Agency This guide is intended to help employers to develop and implement a Parental Leave Policy for their workplace Gender Equality Agency Steps to implement a Leading - Practice Parental Leave policyEmployer-funded paid Parental leaveThe amount of employer-funded paid Parental Leave varies between employers.

5 Based on the workplace Gender Equality Agency s (WGEA) 2020-21 dataset, the average length of paid primary carer s Leave offered is weeks and for paid secondary carer s Leave it is weeks. For guidance on Leading Practice , the current requirement under the workplace Gender Equality Agency s (WGEA) Employer of Choice for Gender Equality (EOCGE) citation is for permanent employees to be provided with a minimum of eight weeks of paid Parental Leave at full pay for primary carers and a minimum of three weeks for secondary carers. This also applies to partners in partnership structures. Both women and men must be given the opportunity to identify as the primary carer.

6 To satisfy EOCGE requirements, these measures must be in addition to the Federal Government s PPL scheme and cannot just be a top-up of the Government PPL payments. Additional ways that employers can support employees include: in addition to providing employer-funded paid Parental Leave at an employee's full-pay, top-up the government PPL payments have no eligibility period to access employer-funded PPL ( employees have access to this Leave upon commencement of employment) promote the option to return from Parental Leave on a reduced-hours basis promote the opportunity for parents returning to work to request flexible working arrangements continue superannuation contributions during paid and unpaid Parental Leave .

7 In 2016-17, approximately 582,300 women over the age of 15 were the birth mother of a child under the age of two. Of these women, 73% had held a job at some stage during their pregnancy and 42% with a child under two had already returned to work at the time of the survey. ABS 2017, Pregnancy and Employment Transitions, viewed 10 July 2018, available: < Build a business caseHaving an attractive paid Parental Leave Policy can provide employers with a competitive edge in the labour market when it comes to attracting and retaining talent. According to data from the Australian Bureau of Statistics (ABS), fewer women are now resigning from their job after giving birth.

8 Currently 77% of mothers return to the same job they left when they went on Parental Leave . This has increased from 71% in The Australian economy loses approximately $ billion in productivity and $385 million in avoidable recruitment costs each At an industry level, the average cost of turnover in the nursing profession is estimated to be $49,255 per full-time employee due to direct and indirect costs associated with staff These considerable costs mean that retaining staff is important for all businesses, big and there may be initial set-up and administrative challenges in creating or improving PPL policies, the positive impact on employees and employers can make this a very worthwhile investment.

9 Other benefits may include: increased diversification of workforce composition by increasing the number of employees (particularly women) who return to work after Parental leave10 opportunities for employees to step up while their co-workers are on Parental leave11 retention of parents whose depth of experience can bring new and relevant soft skills to the workplace such as time management and enhanced organisational skills12 maintenance of institutional memory, industry knowledge, networks and contacts due to improved retention rates increased employee loyalty, job satisfaction and productivity reduction in the likelihood of stigma and discrimination experienced by parents at work due to the balancing of work and care13 paid Parental Leave is a core requirement of WGEA s Employer of Choice for Gender Equality (EOCGE) citation program.

10 The EOCGE citation is a Leading Practice recognition program that aims to encourage, recognise and promote active commitment to achieving gender equality in Australian workplace Gender Equality Agency 1. Collect the dataFor employers that are Developing a Parental Leave Policy , it is critical to collect the relevant data to make an informed assessment of the situation within the organisation. Analysis of the data will support a strong business case and help to inform a Policy that is relevant to each employer s workforce. There is no single methodology for data collection and each employer will have unique data sources.