In New Zealand, eligible employees can take up to 26 weeks of paid parental leave under the Parental Leave and Employment Protection Act 1987. The leave is paid through the Ministry of Social Development (MSD) at the employee's average weekly earnings or a flat rate, whichever is higher. Employees must have worked for their employer for a minimum period to qualify for both paid and unpaid leave.

Statutory entitlement

Up to 26 weeks of paid parental leave for primary carers. Paid at the employee's average weekly earnings or the statutory maximum rate (currently $648.90 per week before tax), whichever is greater. An additional 8 weeks of unpaid parental leave may be available for some employees.

Eligibility

To qualify for paid parental leave: at least six months of continuous employment with the same employer (averaging at least 10 hours per week, or one hour per week if at least 40 hours per month). For unpaid leave: 12 months of continuous service. The employee must be the primary carer of the child and intend to be responsible for the child's care, welfare, and development.

Employer obligations

  • Grant eligible employees up to 26 weeks of parental leave.
  • Keep the employee's position available during parental leave (unless the position is a 'key position' that cannot be kept open).
  • Respond to parental leave notices within 21 days.
  • Allow eligible employees to perform up to 40 hours of work for the employer during the parental leave period without affecting their leave.
  • Pay top-up payments if required by employment agreement.
  • Maintain the employee's accrued annual leave entitlements during parental leave.

Employee rights

  • Right to 26 weeks of paid parental leave if eligibility criteria are met.
  • Right to request a flexible working arrangement on return to work.
  • Right to return to the same position or, if unavailable, a position of similar status and pay.
  • Right to perform up to 40 hours of 'keeping in touch' work during parental leave.
  • Right to accrue annual leave during parental leave.

Common pitfalls

  • Not checking whether the employee is eligible for paid or unpaid leave — the six-month and 12-month thresholds are different.
  • Failing to respond to a parental leave notice within 21 days — employers must confirm or deny entitlement in writing.
  • Key position provisions — employers can only refuse to keep a position open if it is a 'key position' and they have taken reasonable steps to keep it available.
  • Not accounting for keeping-in-touch work — employees can work up to 40 hours for their employer during parental leave without ending their leave.

How paid parental leave is funded

Parental leave payments are made by the New Zealand government through MSD (Work and Income), not by employers. Employers do not deduct parental leave payments from payroll unless they are acting as a paying agent by agreement with the employee.

Partner's leave

Partners of primary carers are entitled to up to two weeks of unpaid partner's leave (or one week of paid leave if eligible for paid partner's leave through government funding). This is separate from the 26-week primary carer's leave.

Return to work obligations

Employers must keep the employee's position available during parental leave unless it is a key position. On return, the employee must be offered the same or substantially similar position. If the position has changed significantly, the employer must consult with the employee.

Frequently asked questions

Can both parents take parental leave at the same time?

The primary carer takes the 26-week paid parental leave. The partner may be eligible for unpaid partner's leave (or one week of paid leave). Both parents cannot receive the 26-week paid leave simultaneously.

What happens if the employee's position is redundant during parental leave?

Employees on parental leave have the same protections as other employees. If the position is genuinely redundant, the employer must follow a fair redundancy process. The employee retains their right to return to a substantially similar position if one exists.

Are casual employees entitled to parental leave?

Yes, if they meet the work test (averaging at least 10 hours per week or one hour per week if at least 40 hours per month over six months). Casual employees may be eligible for both paid and unpaid parental leave.

Sources

This page is provided for general guidance and does not constitute legal advice. Always check the cited primary source for current law before making employment decisions.