What is maternity leave and pay?

It seems incredible that for women in Australia, as recently as the early 1970s, it was not uncommon to face job termination due to pregnancy.

The Maternity Leave (Commonwealth Employees) Act 1973 introduced the first formal provision of paid maternity leave in Australia, specifically for Commonwealth public servants, in 1973.

Over timeWhile it took some time, most companies are now much more understanding when it comes to looking after pregnant women and new mothers in their employment.

In this guide, we’ll look at the different types of maternity leave and how to manage them as an employer.

Expectant mothers’ rights

Eligible employees who are the carer of a child born or adopted from 1 July 2024 are entitled to:

• Up to 22 weeks’ Parental Leave Pay, which is paid at the National Minimum Wage.

• A further unpaid period of parental leave of no more than 12 months can be approved, with the total amount being not more than 24 months from the date of birth.

• Paid time off (usual sick leave entitlements) to attend antenatal appointments.

• Return to work under the same conditions and terms.

If you do not honour these worker entitlements, you may be in breach of the Sex Discrimination Act 1984.

Maternity Leave Pay

During maternity leave, employees in Australia can receive both government-funded Parental Leave Pay (PLP) and employer-funded parental leave payments, which can be taken at the same time or separately and may include other leave entitlements. 

Government-funded Parental Leave Pay (PLP)

What it is: The Australian Government provides PLP to eligible working parents to help them take time off to care for a newborn or newly adopted child. 

Who is eligible: Both primary carers and their partners (including same-sex partners) can access PLP if they meet the eligibility criteria. 

How it's paid: PLP is paid at the National Minimum Wage. 

How it's managed: PLP is managed by Services Australia. 

How much you can get: The amount of PLP depends on factors like the child's date of birth or adoption. 

How to apply: Employees apply for Parental Leave Pay through Services Australia, and employers are responsible for providing the payment to employees after receiving funds from Services Australia.

Employer-funded Parental Leave Payments

What it is: Some employers offer additional paid parental leave beyond the government scheme. 

How it's determined: These payments can be outlined in agreements, employment contracts, or workplace policies. 

Employees should: Speak to their employer for details about their specific parental leave payments. 

Examples: Paid leave can be taken at full pay, half pay, or a combination of both, not exceeding 32 weeks.

Other leave: Other forms of leave can be used in conjunction with maternity leave to extend the period up to 52 weeks, for example annual, purchase, long service and leave without pay.

Other considerations:

Unpaid Parental Leave

Employees are entitled to 12 months of unpaid parental leave, with the opportunity to request an additional 12 months.

Keeping in Touch Days

Employees on unpaid parental leave can choose to attend work meetings or perform work for the purpose of "keeping in touch" and are entitled to be paid their usual rate for these days.

Accruing Leave

Employees don't usually build up paid leave while on unpaid parental leave, but they will continue to accrue some types of paid leave during periods of employer-funded paid parental leave, keeping in touch days, or periods of paid leave taken during unpaid parental leave. 

Preparing for maternity cover

Planning maternity cover is good for business continuity. You can recruit on a temporary or contract basis to cover some, or all, of the absent employee’s responsibilities. Remember the employee on maternity has the right to resume her job after maternity leave.

Maternity Leave made easy with BrightHR

As an employer, understanding and supporting employees through maternity leave, not only demonstrates your commitment to their wellbeing but also contributes to a positive workplace culture.

The first step towards achieving this is having the right tools in place to help you fully understand and support your employees.

BrightHR offers a range of such tools, including a 24/7 employment relations advice line and an HR document library with hundreds of policy templates and guides. We can help you with a sample letter for maternity leave and all other issues relating to employee time away from work.

Not a BrightHR customer? Experience these tools for yourself by booking a free product demo today.