Paid Parental Leave – Hair and Beauty Industry

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Posted September 19, 2016

Under the Paid Parental Leave scheme, eligible working parents in the hair and beauty industry can get 18 weeks of government-funded Parental Leave Pay. This is paid at the rate of the National Minimum Wage. Full-time, part-time, casual, seasonal, contract and self-employed workers may be eligible.

The government provides the necessary Paid Parental Leave funds to employers, who then provide Parental Leave Pay to their employees. This is not an employment entitlement, this is a government entitlement.

Who is eligible for Parental Leave Pay?

An eligible employee is someone who:

• has a child born or adopted from 1 July 2011
• has met the Paid Parental Leave work test before the birth or adoption occurs
• will be your employee for his or her Paid Parental Leave period
• is Australian-based, and
• is expected to receive at least eight weeks of Parental Leave Pay

To meet the Paid Parental Leave work test the employee must have:

• worked for at least 10 of the 13 months prior to the birth or adoption of their child, and
• worked for at least 330 hours in that 10 month period (just over one day a week), with no more than an eight week gap between two consecutive working days.

 The Salon Owners Role:

If your employee does not meet the above criteria, you are not required to provide Parental Leave Pay. Before your employee lodges his or her claim for the scheme, you need to register for Centrelink Business Online Services and then opt in to provide Parental Leave Pay.

Centerlink will contact you if you are required to provide Parental Leave Pay to an employee, and will require information such as:

• Business name
• Australian Business Number (ABN)
• Contact details
• Business bank details, and
• Employee’s pay cycle details

As a salon owner you are not required to provide Parental Leave Pay to an employee until you have received sufficient funds from Centrelink. Paid Parental Leave funds will be electronically transferred to your nominated bank account by Centrelink, before your employee’s usual pay cycle cut-off.

When can the Employee take Paid Parental Leave?

The employee can choose when they want to be paid parental leave. This can start any time from the birth or adoption of their child, and they must receive all of their pay within 52 weeks of the birth or adoption.

Can an Employee work while receiving Paid Parental Leave?

No. To be eligible for Paid Parental Leave, the employee must be on leave and not working. If the employee returns to work before that time, they need to notify Centrelink and payments will stop.

Need clarification, contact Hair & Beauty Australia on 02 9221 9911 or visit www.askhaba.com.au