Eligibility for Paid Parental Leave in New Zealand
Paid parental leave in New Zealand is primarily governed by the Parental Leave and Employment Protection Act 1987. This legislation outlines the criteria for who is eligible to receive a government-funded payment while they are caring for a new child. This payment is distinct from any unpaid leave entitlements that may be available from an employer.
What is Paid Parental Leave?
Parental Leave Payment (PLP) refers to a government-funded payment provided to eligible primary carers during their period of leave to care for a new child [Source: Parental Leave and Employment Protection Act 1987, s 70A, s 70B]. The payment is administered by Inland Revenue.
Who is Considered a Primary Carer?
To be eligible for the Parental Leave Payment, an individual must be a primary carer. A primary carer is defined as the person who has the main responsibility for the care of a child. This can include:
- The birth mother [Source: Parental Leave and Employment Protection Act 1987, s 2(1) (definition of 'employee entitled to parental leave'), s 7D(2)].
- An adoptive parent [Source: Parental Leave and Employment Protection Act 1987, s 2(1) (definition of 'employee entitled to parental leave'), s 7D(2)].
- A person who has taken on the permanent primary responsibility for the care of a child under the age of six years, for example, through a permanent care order [Source: Parental Leave and Employment Protection Act 1987, s 2(1) (definition of 'employee entitled to parental leave'), s 7D(2)].
The Work Test for Eligibility
Eligibility for the Parental Leave Payment depends on meeting a work test, which assesses an individual's work history in the period immediately leading up to the child's expected date of birth (EDB) or the date the child comes into their care. The work test applies differently for employees and self-employed individuals.
For Employees
An employee who is a primary carer is eligible for a parental leave payment if they have worked for any employer or employers for an average of at least 10 hours a week and for at least 26 weeks [Source: Parental Leave and Employment Protection Act 1987, s 7D(3), s 7D(4)]. This work must have occurred:
- In the 6-month period ending on the expected date of birth or the date the child first comes into the primary carer's care [Source: Parental Leave and Employment Protection Act 1987, s 7D(3)], OR
- In the 12-month period ending on the expected date of birth or the date the child first comes into the primary carer's care [Source: Parental Leave and Employment Protection Act 1987, s 7D(4)].
Meeting either the 6-month or the 12-month work test makes an employee eligible for the payment.
For Self-Employed Individuals
A self-employed primary carer is eligible for a parental leave payment if they have performed work as a self-employed person for an average of at least 10 hours a week and for at least 26 weeks [Source: Parental Leave and Employment Protection Act 1987, s 7D(5), s 7D(6)]. This work must have occurred:
- In the 6-month period ending on the expected date of birth or the date the child first comes into the primary carer's care [Source: Parental Leave and Employment Protection Act 1987, s 7D(5)], OR
- In the 12-month period ending on the expected date of birth or the date the child first comes into the primary carer's care [Source: Parental Leave and Employment Protection Act 1987, s 7D(6)].
As with employees, meeting either the 6-month or the 12-month work test makes a self-employed individual eligible for the payment.
Transferring Parental Leave Payments
A primary carer may be able to transfer all or part of their entitlement to parental leave payments to their spouse or partner. For this transfer to occur, the spouse or partner must also meet the eligibility criteria for the Parental Leave Payment themselves, including the work test [Source: Parental Leave and Employment Protection Act 1987, s 71E].
When to Seek Independent Legal Advice
Individuals requiring specific guidance on their eligibility for parental leave payments, understanding the implications of their employment situation, or navigating disputes with an employer regarding parental leave entitlements, should seek independent legal advice. Community Law Centres offer free legal advice and can be contacted at Community Law Centres.