Australia’s parental leave system has evolved significantly, with the government Paid Parental Leave (PPL) scheme now providing 20 weeks of payment and the National Employment Standards (NES) guaranteeing 12 months of unpaid leave. For small businesses, understanding and communicating these entitlements clearly is essential. This template gives you a compliant, employee-friendly parental leave policy.
Key Takeaways
- The NES provides up to 12 months of unpaid parental leave for eligible employees, with an additional 12 months available on request.
- The government Paid Parental Leave (PPL) scheme provides 20 weeks of payment (as of 2026), increasing to 26 weeks by 2026.
- Employers with 15+ employees may offer enhanced parental pay as a competitive benefit.
- Casual employees are not entitled to NES parental leave but may qualify for PPL.
What This Template Covers
This template provides a complete parental leave policy for Australian small businesses. It covers unpaid parental leave under the NES, government Paid Parental Leave (PPL), employer-enhanced provisions, notification requirements, flexible working arrangements, and return-to-work planning. It is designed for businesses with fewer than 15 employees but can be adapted for larger organisations.
Parental Leave Policy Template
1. Purpose
[Company Name] recognises that becoming a parent is a significant life event. This policy outlines the parental leave entitlements available to employees, ensuring compliance with the National Employment Standards and providing meaningful support during this important time.
2. Scope
This policy applies to all employees of [Company Name], including full-time, part-time, and casual employees (where applicable), who are the primary carer or secondary carer of a child.
3. Unpaid Parental Leave (NES)
Under the National Employment Standards (Fair Work Act 2009, Part 2-2, Division 4A), eligible employees are entitled to:
- 12 months of unpaid parental leave if they are the primary carer of a child.
- 2 weeks of unpaid parental leave if they are the secondary carer of a child.
- An additional 12 months of unpaid parental leave may be requested by the primary carer, subject to agreement or dispute resolution.
Eligibility: At least 12 months of continuous service with the employer (or a combination of service with a predecessor employer).
Key conditions:
- Leave must be taken within 12 months of the child’s birth or placement for adoption.
- The employee must provide at least 10 weeks’ notice of the intended start date.
- The employee must provide at least 4 weeks’ notice of any change to the start date.
- Primary carers can request an additional 12 months by providing at least 4 weeks’ notice before the original leave end date.
4. Government Paid Parental Leave (PPL)
The Australian Government provides Paid Parental Leave through Services Australia. As of 2026:
- 20 weeks of PPL at the national minimum wage (currently $1,011.00 per week before tax for 2025–2026).
- PPL is available to the primary carer and can be shared with the secondary carer under the “use it or lose it” flexible Paid Parental Leave days.
- PPL can be taken before, during, or after unpaid parental leave.
- Eligibility requirements:
- The employee must have worked at least 330 hours in the 10 of 13 months before the expected birth or adoption date.
- Combined individual and partner income must be below $350,000 per year.
- The employee must be an Australian resident.
5. Employer-Enhanced Parental Leave
[Company Name] offers the following enhancements beyond the NES and government PPL:
- [X] weeks of fully paid parental leave at [100%/normal pay rate] for the primary carer, in addition to government PPL.
- [X] weeks of fully paid parental leave for the secondary carer.
- [Option to purchase additional leave: Employees may purchase up to [X] additional weeks of unpaid leave at their discretion.]
- [Flexible return-to-work arrangements: Employees may return on a part-time or reduced-hours basis for up to [X] months following their return.]
6. Notification Requirements
Employees must provide the following notices to [HR Contact/Department]:
| Event | Notice Required |
|---|---|
| Intention to take parental leave | At least 10 weeks before the expected start date |
| Change to leave start date | At least 4 weeks before the new start date |
| Request for additional 12 months | At least 4 weeks before the original end date |
| Return to work (or early return) | At least 4 weeks before the intended return date |
7. Continuous Service and Entitlements During Leave
During unpaid parental leave:
- The employee’s position is preserved (or a suitable alternative position if the original role is no longer available).
- Annual leave continues to accrue.
- Service is treated as continuous for the purposes of long service leave and other entitlements.
8. Flexible Working Arrangements
Following parental leave, employees may request flexible working arrangements under the NES (s. 65, Fair Work Act). [Company Name] will consider all requests sympathetically and in accordance with the law. Flexible arrangements may include:
- Part-time work
- Compressed working hours
- Remote or hybrid working
- Modified start and finish times
9. Return to Work
[Company Name] will support employees returning from parental leave through:
- A structured return-to-work conversation
- Consideration of phased return options
- Referral to the Employee Assistance Programme (EAP)
- Update on any changes to the workplace that occurred during leave
10. Policy Review
This policy will be reviewed annually or following changes to the Fair Work Act, NES, or government PPL scheme. Questions should be directed to [HR Contact Name/Email].
Legal Requirements Summary
| Requirement | Detail |
|---|---|
| Unpaid parental leave (NES) | 12 months primary carer; 2 weeks secondary carer |
| Additional unpaid leave | 12 months additional on request (primary carer) |
| Government PPL (2025–26) | 20 weeks at national minimum wage ($1,011/week) |
| Service requirement (NES) | 12 months continuous service |
| PPL eligibility | 330 hours in 10 of 13 months; combined income <$350K |
| Notice (NES) | 10 weeks for leave; 4 weeks for changes |
Customisation Tips
- Enhance the PPL top-up. Government PPL is at the minimum wage, not the employee’s salary. Offering a top-up to the employee’s full salary is a highly valued benefit.
- Address both parents explicitly. Clarify entitlements for both primary and secondary carers, including same-sex couples.
- Plan for coverage. Small businesses need a clear plan for covering an employee’s role during an extended leave period.
- Include surrogacy provisions. Intended parents through surrogacy have specific entitlements that differ from adoption and birth parents.
Common Mistakes to Avoid
- Confusing government PPL with employer pay. PPL is a government payment processed through the employer or directly to the employee. It is separate from any employer-provided parental pay.
- Requiring a return-to-work bond. Requiring an employee to repay parental pay if they do not return is lawful in some circumstances, but the terms must be clearly communicated before the leave begins.
- Not accounting for casual employees. While casual employees are not entitled to NES parental leave, they may be eligible for government PPL if they meet the work test.
- Failing to plan for extended leave. 12 months (or more) is a long time for a small business. Develop a coverage plan well in advance.
- Ignoring the “use it or lose it” PPL days. The flexible PPL days available to the secondary carer are lost if not used. Ensure both parents understand this.
Frequently Asked Questions
Can both parents take parental leave at the same time?
Yes. Under the NES, both the primary and secondary carer can take unpaid parental leave simultaneously. Under the government PPL scheme, the secondary carer can access up to 20 “flexible” PPL days (out of the 20-week entitlement) while the primary carer is also receiving PPL.
Do casual employees get parental leave?
Casual employees are not entitled to unpaid parental leave under the NES. However, they may be eligible for government PPL if they meet the work test (330 hours in 10 of 13 months). If a casual employee’s role would not otherwise have been offered to a casual, they may have additional protections.
Can we refuse an additional 12 months of unpaid parental leave?
An employer can refuse a request for an additional 12 months only on “reasonable business grounds” and must consult with the employee before refusing. If the employee disagrees, the matter can be taken to the Fair Work Commission for dispute resolution.
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