This week, Parliament has passed amendments to the Paid Parental Leave Act 2010 (Cth), which had come into effect on 1 January 2011. The amendments are relevant for fathers and same-sex partners who, under the amendments, can now claim two weeks of paid paternity leave. The new payment will be implemented from 1 January 2013.

In addition, the amendments allow employees to perform paid work during a period of unpaid parental leave.

Dad and partner pay
The Paid Parental Leave and Other Legislation Amendment (Dad and Partner Pay and Other Measures) Bill 2012 (Bill) extends the Federal Government's paid parental leave scheme by introducing a new payment, called 'dad and partner pay', for eligible working fathers and partners.

Under the amendments, dad and partner pay will be available to eligible fathers and partners (including same-sex couples) who are caring for a child born or adopted from 1 January 2013. Eligible fathers and partners will be able to receive two weeks of dad and partner pay at the rate of the national minimum wage, which is the same weekly rate as for the existing parental leave pay (which will be $606.40 per week from 1 July 2012).

Dad and partner pay will be available during the first 12 months after the birth or adoption of the child. Eligible fathers and partners must be caring for the child (either through primary care or joint care) and must not be on paid leave or at work during the period that they receive dad and partner pay. In addition, the father or partner must satisfy the required eligibility rules, specifically:

  • The work test (calculated in accordance with the Bill)
  • The income test (the person's adjusted taxable income must be less than $150,000 annually, which is indexed)
  • The Australian residency test.

Other amendments
The Bill also amends the Fair Work Act 2009 (Cth) to introduce the concept of a 'keeping in touch day', which enables employees who are on unpaid parental leave to perform permissible paid work for short periods in order to assist with the employee's return to work.

Keeping in touch days are capped at 10 days and require both employee and employer consent. The day must not be within 14 days of the date of birth, or day of placement, of the child. The keeping in touch days do not extend the period of the employee's unpaid parental leave.

The amendments also allow employees to take unpaid parental leave early where there is a stillborn or infant death.

Implications for employers
Dad and partner pay will be available from 1 January 2013, although employers will have no role in providing dad and partner pay to their employees as it is paid directly by the Federal Government.

Employers should consider the best way to use keeping in touch days to reacquaint returning employees into the workplace, including training on new systems or planning meetings.

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