Commonwealth of Australia Explanatory Memoranda

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PAID PARENTAL LEAVE BILL 2010

                               2008-2009-2010





               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA





                                   SENATE









                        PAID PARENTAL LEAVE BILL 2010




                    SUPPLEMENTARY EXPLANATORY MEMORANDUM





             Amendments, and request for amendment, to be moved
                         on behalf of the Government













                     (Circulated by the authority of the
 Minister for Families, Housing, Community Services and Indigenous Affairs,
                          the Hon Jenny Macklin MP)
                        PAID PARENTAL LEAVE BILL 2010


OUTLINE


Government amendments are made to the Paid Parental Leave Bill 2010.   These
amendments:

    . insert a new 'Object of this Act' clause to clarify the object of  the
      new Paid Parental Leave Act 2010;


    . clarify that an obligation of an employer to  provide  parental  leave
      pay to a person under the new Paid  Parental  Leave  Act  2010  is  in
      addition to any other obligations that employer has in relation to the
      person, however they arise;

    . allow a birth mother to be eligible for parental leave pay  where  the
      Secretary is satisfied that she would have met the work test  but  for
      the premature birth of her child, or  pregnancy-related  complications
      or illness; and

    . provide for a review of the general operation of the new Paid Parental
      Leave Act 2010, starting by 31 January 2013.

Financial impact statement

The financial impact of these amendments is negligible.


                        PAID PARENTAL LEAVE BILL 2010


                            Government amendments


These Government amendments address some  issues  that  were  raised  during
debate on the bill in the House of Representatives and the inquiry into  the
bill by the Senate Community Affairs Legislation Committee.


NOTES ON AMENDMENTS

Amendment 1 inserts new Division 1A into the Paid Parental Leave Bill  2010.
 This new Division sets out in new clause 3A the  object  of  the  new  Paid
Parental Leave Act 2010.

New subclause 3A(1) provides that the object of the new Paid Parental  Leave
Act 2010 is to provide financial support to  primary  carers  (mainly  birth
mothers) of newborn and newly adopted children.  This  additional  financial
support would allow carers to take time off work to  care  for  their  child
after the child's birth or adoption, enhance the health and  development  of
birth mothers and children, encourage women to continue  to  participate  in
the workforce, and promote equality between men and women  and  the  balance
between work and family life.

New  subclause  3A(2)   provides  that,  generally,  the  financial  support
provided by the new Paid Parental Leave Act 2010 is only for primary  carers
who have a regular connection to the workforce (through the  application  of
the work test).

New subclause 3A(3) makes it clear that the financial  support  provided  by
the new  Paid  Parental  Leave  Act  2010  is  intended  to  complement  and
supplement existing entitlements to paid or unpaid leave in connection  with
the birth or adoption of a child.

Amendments 2, 3, 4 and 5 modify the  work  test  to  address  situations  of
premature birth or pregnancy-related complications or illness.

Clause 6 of the Paid  Parental  Leave  Bill  2010  is  a  Dictionary,  which
defines terms and concepts used in the new Paid  Parental  Leave  Act  2010.
Amendment 2 inserts a new  definition  into  the  Dictionary.   A  child  is
born prematurely if, at the  time  of  the  child's  delivery,  the  child's
period of gestation is less  than  37 weeks.   This  term  is  used  in  new
subclause 31(4A), inserted by amendment 5.

In order to be eligible for parental leave pay, a  claimant  must  generally
meet the work test.  Amendments 3 and  4  are  consequential  amendments  to
clause 31 of the Paid Parental Leave Bill 2010, which insert an  alternative
test (in new subclause 31(4A)) that  a  person  may  meet  in  order  to  be
eligible.

Amendment 5 inserts a new subclause 31(4A)  into  the  Paid  Parental  Leave
Bill.  This provision applies  to  a  birth  mother  whose  child  was  born
prematurely  or  who  suffered  complications  or  illness  related  to  the
pregnancy.  If such a mother does not satisfy the work test, she  may  still
be eligible for parental leave pay if the Secretary is  satisfied  that  she
would have  satisfied  the  work  test  but  for  the  premature  birth,  or
pregnancy-related complications or illness which prevented the  person  from
performing paid work.

Amendment  6  inserts  a  new  clause  99A  into  the  Paid  Parental  Leave
Bill 2010.

Clause 99A clarifies, to avoid any doubt, that an employer's  obligation  to
pay a person parental leave pay under the new Paid Parental Leave  Act  2010
is separate and additional to any  other  obligation  the  employer  has  in
relation to the person.  This is  relevant  if,  for  example,  an  employee
chooses to access an  entitlement  under  a  law  or  industrial  instrument
(which in this context would include  a  contract  of  employment)  to  paid
leave (for example, paid  parental  leave,  annual  leave  or  long  service
leave) during the same period  the  employee  is  receiving  instalments  of
parental leave pay from their employer.  If this occurs,  clause  99A  makes
clear that the employer is obliged to pay the  employee's  full  paid  leave
entitlement in addition to the instalments of parental leave pay.

Amendment 7  inserts  a  new  clause  307A  into  the  Paid  Parental  Leave
Bill 2010.  In broad terms, new clause 307A provides for the review  of  the
operation of the new Paid Parental Leave Act 2010.

New subclause 307A(1) requires the Minister to cause a comprehensive  review
of the general operation of the new Paid  Parental  Leave  Act  2010  to  be
begun by the end of January 2013.

The review must consider the matters  set  out  in  new  subclause  307A(2).
These are:

           . the amount of time off work that primary carers are  taking  to
             care for newborn or newly adopted children;


           . the availability and amount of leave and payments  provided  by
             employers in relation to the birth or adoption of a child,  and
             the interaction of those entitlements with parental  leave  pay
             provided under the new Paid Parental Leave Act 2010;

           . the operation of the work test;

           . whether primary claimants' partners  should  be  paid  parental
             leave  pay  separately  from,  or  in  addition   to,   primary
             claimants;

           . whether employers should make superannuation  contributions  in
             relation to parental leave pay;

           . the results of any evaluations conducted  in  relation  to  the
             operation of the new Paid Parental Leave Act 2010;

           . the administration of the new Paid Parental Leave Act 2010; and

           . any other matter relevant to the general operation of  the  new
             Paid Parental Leave Act 2010.


Under subclause 307A(3), the Minister must ensure that the public is  given
the opportunity to make submissions in relation to the review.


Finally, subclause 307A(4) requires the Minister  to  cause  a  copy  of  a
written report of the review to be tabled in each House of the  Parliament.
This must be done within 15 sitting days of the day on which  the  Minister
receives the report.