Parental Leave

When an employee takes a period of parental leave, qualifying service, long service leave accrual and an employer’s obligation to pay levies can be impacted.

It’s important to be aware of the differences between the types of parental leave for long service leave administration purposes.

Unpaid parental leave

• Under Coal LSL’s governing legislation, unpaid parental leave is considered to be a period of unpaid leave.
• Employees do not accrue leave or qualifying service while on unpaid leave.
• This means an employer is not obligated to pay levies for their eligible employee during this time.

Paid parental leave – Government-funded (Centrelink)

• There is no requirement for the government to pay a long service leave levy on government-funded paid parental leave.
• This means employees do not accrue leave or qualifying service while on government-funded paid parental leave.
• It also means an employer is not obligated to pay levies for their eligible employee during this time.

Paid parental leave – Employer-funded

• While you may provide this additional benefit to your employees, Coal LSL cannot give guidance on the provisions of an employment agreement or arrangement with your employees.
• If you agree to pay your employee during parental leave or to pay them an additional amount to the government-funded paid parental leave scheme, your employee will continue to accrue long service leave during their parental leave.
• You must pay levies on the amount you pay your employee during their parental leave and provide details of their leave through the monthly Levy Advice Form.

When an employee takes a period of paid parental leave you must report certain information on your monthly Levy Advice form.

Use the Comments field next to the employee’s name under the Employee Details section to include:

• The period of parental leave, including any unpaid component.
• Any change to your employee’s employment classification e.g. from full time to part time.
• Weekly remuneration paid during the parental leave.
• Details of any arrangement with your employee that involves less than the full weekly remuneration. NOTE: If you have an arrangement with your employee to pay their parental leave at half pay, this does not make them a part-time employee; their long service leave would continue accruing during their parental leave period according to their full-time status.

Also note:

• Levies are payable on employer-paid parental leave.
• When an employee receives the Federal Government-funded Parental Leave Pay or Dad and Partner Pay, regardless of whether it is paid to the employee directly by the government agency or in instalments by you as their employer, under Coal LSL’s governing legislation an employee is considered to be on leave without pay (LWOP) so it does not count as qualifying service and no levy is payable.

If you have any questions about this information, please call us on 1300 852 625 between 8.30am and 4.00pm Monday to Friday (AEST) or email our support team.