Employer’s guide to parental leave in NZ

Family planning is a huge, exciting part of life – but it’s also a topic that often lurks in the background. As an employee, many find it a hard topic to approach because they don’t know what reactions to expect.

As an employer, creating a culture that celebrates parenthood at work should be high on your priority list. And in today’s workplace, it is more important than ever to make sure that policies around this are inclusive for both heterosexual couples and same-sex couples.

That means you need to be on top of the different types of leave your team members are entitled to, to enable open conversations around it. And if you haven’t already – don’t forget to update your workplace policies and procedures. After all, being able to celebrate parenting and family life regardless of whether you’re a new or experienced parent makes a huge difference to the spirit of your team.

Let’s unpack exactly what this means for you as a business and for your employees, so that they feel supported and can focus on this next exciting chapter of life.

What is parental leave?

Parental leave is a type of leave allocated to employees who have had or adopted a child, enabling them to spend that all-important time with their little one as they grow and become more independent.

Whether an employee is legally entitled to parental leave and the length of time they’re entitled to can be complicated, and depends on a number of factors. It’s important that employers are aware of eligibility requirements and what is required of them to ensure an easy and fair process.

Is maternity leave the same as parental leave?

Maternity leave is a previous type of parental leave, as decreed under the Parental Leave and Employment Protection Act 1987. The Act has evolved a lot since its inception in 1987, factoring in the different types of parenthood beyond the one experienced by a biological mother and father in a monogamous relationship.

Now, parental leave is available to ‘primary carers’ with permanent primary responsibility of a child, as well as the spouse or partner of a primary carer. This could include those about to adopt a child under the age of 6, begin a whāngai arrangement, as well as those who are having a child through a surrogate. There is also ‘special leave’ that a pregnant employee can use prior to the birth.

Who is eligible for parental leave in NZ?

In order to be eligible for parental leave in New Zealand, you need to meet the following criteria:

• You work for a NZ employer,
• You will have worked as an employee for an average of 10 hours a week for any 26 weeks of the 52 weeks before the child arrives (not necessarily for the same employer throughout),
• You pay income tax to Inland Revenue, and
• You’re in an employment relationship which is subject to employment law.

It’s important to note that paid parental leave can be taken by just the nominated primary carer of a child, or if both the primary carer and partner carer are eligible, the leave can be split up (eg. one parent takes on the first three months, and their spouse or partner takes on the latter three months).

Eligible employees must give their employers at least 14 days written notice if they want to take parental leave.

Can employers ask for a certificate confirming a pregnancy?

Yes, a letter of confirmation from a doctor or midwife with the expected date of arrival is actually required as part of the request if you or your partner are giving birth.

Once an employee has given their employer written notice that they intend to take paid parental leave, the employer has seven days to request any further information, although the confirmation letter should be sufficient.

Can employers deny a parental leave request?

No, employers cannot deny a request if the employee meets eligibility criteria.

However, they can specify what will happen to the employee’s role in certain circumstances as a result of the leave. If the employee is taking up to four weeks of parental leave, the employer must keep their role open for them.

On the other hand, if the employee is taking more than four weeks of parental leave and their role is defined as a ‘key position’, where replacing the employee would require serious training and investment, the employer does not have to keep that role open for the employee. They do have to give the employee a 26 week ‘period of preference’ when they return, where if the employer has a similar role available, it must be offered to the employee first before anyone else.

How much paid parental leave are NZ employees entitled to?

The paid parental leave entitlements depends on a number of factors, including:

• How long the employee has worked for the employer (under 6 months, 6-12 months or over 12 months); and
• Whether they are a primary or partner carer

To ascertain what you’re entitled to in terms of parental leave, MBIE has this helpful calculator. There’s also a full chart which is useful if you’re trying to split parental leave between two carers. We’ve included some common scenarios below as examples:

You’re a permanent primary carer and have worked for an employer for 12 months

You’re entitled to:

• 10 days special leave (for pregnant employees) – special leave is for pregnancy-related reasons, such as antenatal classes or doctor’s appointments
• 26 weeks primary carer leave
• 26 weeks parental leave payment
• 52 weeks extended unpaid parental leave (including the 26 weeks of parental leave)

You’re a permanent primary carer and have worked for an employer for 6 months (but less than 12)

You’re entitled to:

• 10 days special leave (for pregnant employees)
• Up to 26 weeks primary carer leave
• 26 weeks parental leave payment

You’re a partner carer and have worked for an employer for at least 6 months

You’re entitled to:

• 2 weeks unpaid partner’s leave
• Take on some of the primary carer’s remaining extended leave

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What is the New Zealand parental leave payment?

Parental leave payments are made through Inland Revenue and sent out each fortnight. The usual deductions that would apply to your wages apply here, such as student loans and income tax, and those who receive parental leave payments can choose to continue their KiwiSaver contributions.

Parental leave payments match the employee’s weekly pay or average weekly income up to $754.87 a week, before tax.

When does parental leave start?

Choosing when parental leave begins for the carer of a child is really up to their discretion, but since it’s a limited timeframe, many employees choose to work as close to the expected due date so they have more leave to spend with their new child.

When it comes to pay, the latest employees can receive it is either the baby’s due date or the day the baby is born, if that’s prior to the due date.

When can employees claim parental leave payments?

Employees can claim parental leave payments once they stop working and begin parental leave officially.

It’s worth noting that if the employee’s baby is born prematurely, they may qualify for premature baby payments. These payments cover the period from the day the baby is born to what would have been the 36th week of pregnancy. After that, normal parental leave payments apply.

‘Keeping in touch’ days

It can be a tricky experience for employees on parental leave, particularly if they worry about what they’re missing at work. That’s where ‘keeping in touch’ days come in useful. These days can be taken by employees if the employer agrees, should they wish to perform work or check in with the team.

However, the days cannot be taken within the first 28 days of the child’s birth and throughout the parental leave period, the employee must only do a maximum of 64 hours of paid work.

If the employee exceeds these hours, they will be seen as being back at work and will not be eligible for further parental leave payments.

What about returning to work?

Going back to work as a new parent can be challenging. As the employer, you’ll want to make this transition as smooth as possible. It goes without saying that you should also have a healthy workplace environment.

Let’s unpack some frequently asked questions about what happens when your team member returns to work after their statutory maternity leave – and any employment rights you should be aware of as you prepare to welcome them back!

1. How much notice should they give you?

Your employee needs to give you at least three weeks notice of the date they intend to return from maternity leave.

2. What about accrued annual leave?

Employees will continue to accrue annual holidays during their parental leave. However, the payment for annual leave that the employee is entitled to during the parental leave and for 12 months after their return, is calculated using the employee’s average weekly earnings for the 12 months before the last pay period. Therefore, they may be lower than an employee is used to.

An employer can choose to pay the employee more than this if they wish to.

3. What if they have a flexible working request on their return?

All employees have the legal right to request flexible working – not just parents and carers. Flexible working is a way of working that suits an employee’s needs, for example having flexible start and finish times, or working from home.

As an employer, you must respond to a request within a month, and make the decision on business grounds instead of on personal situations.

Implementing a leave policy for New Zealand employers

Well done for getting through this guide. Your next step as an awesome, inclusive employer is to make sure that you have a solid leave management guide if you haven’t already done so. Make sure that any updates are communicated to your team so that they are aware of any changes.

Our top tip? Using an employee management software will make things a whole lot easier for you – and your team. With leave management made easy, and a handy employee self-service tool via our mobile app for them to easily request leave – think of all that time you’ll be saving!

By the way – it also helps you manage any paperwork and stores your staff’s personal or financial information all in one handy place. You can keep all those records and certificates you need for Inland Revenue, by simply attaching it to your team members’ profile when the time comes. We’ve got your back so you can start focusing on the things you’ve been meaning to do.

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Disclaimer: The information in this article is current as at 2 November 2022, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.