This edition of our newsletter updates you on the various proposed amendments to Employment Related Legislation that have been or are being introduced to Parliament for its consideration.
The Holidays Act
A joint employer/union advisory group was established by the Government to review and report on possible amendments to the Act. This report is to form the basis of a Bill to be introduced to Parliament shortly. A full review of the Bill will be included in a future Newsletter once the Bill has been tabled in Parliament.
Health And Safety in Employment Act
The Bill (refer to newsletter 5/2001) is still progressing through its various stages in Parliament. We will advise you of further details once the Bill is adopted and the Act is amended.
Criminals Record Bill (Clean Slate)
A Bill has been introduced to Parliament which will allow those with convictions which did not result in their being put into custody, to have their criminal records effectively sealed after a ten year period without further conviction.
The sealing of individual's records will however be subject to the following:
- Serious and repeat offending will not be concealed.
- Employment involving the teaching of children, care of others and employment in the Police, courts and prison service etc will require full disclosure
- Full disclosure will also be required for investigations and prosecutions in criminal and civil proceedings before a court.
This may have an impact for employers where pre-employment screening normally includes a review of an individual's police record through the Department of Courts.
Where previously this review may have indicated prior misdemeanours (e.g. Theft as a servant, Fraud etc) now, upon the passing of this Bill into Law the employer may no longer receive such information concerning an applicants previous criminal convictions. Obviously however if an applicant's offending has occurred within the last ten years, then this will still be reported.
Parental Leave and Employment Protection (Paid Parental Leave) Amendment Bill
This Bill is still going through its various stages in Parliament (refer to newsletter-Special Update 1). As this amendment to the Act is planned to be passed into Law by 1 July, we would expect to see further developments in the near future.
We will keep you informed of any developments to the above proposed amendments as they occur.
Parental Leave and Employment Protection (Paid Parental Leave) Amendment Bill
Summary
Eligibility
- The Bill extends the definition of spouse to include same sex partners.
- It extends its coverage to include home workers.
- The Bill amends the criteria to avoid disadvantaging employees who meet the tenure criteria for Parental Leave but work non-standard fluctuating hours are job sharing, rostered on unusual hours, on call or on periods of leave.
- The Bill amends the criteria to an average of 10 hours per week over 12 monthswith at least 1 hour per week and 40 hours in any month.
The Current Act states a minimum of 10 hours per week.
- The new provisions cover employees whose expected date of delivery is 1 July 2002 or later or whose baby is born or adopted on or after 1 July 2002.
Employees already taking Parental Leave by the 1st July will also be covered by the provisions subject to meeting the above criteria.
- The Employment Relations Authority/Court must waive the failure, and where appropriate confirm the right of an employee to parental leave, if satisfied:
- The failure to comply with the notice period (3 months) was in good faith.
- The extent to which the employee did or did not comply with the notice requirements was reasonable in all the circumstances of the case.
The current Act states an employee must provide 3 months notice to an employer of their intention to take Parental Leave.
Transferability
Entitlement to the Parental Leave payment may be transferred to a partner/spouse if the partner also meets the tenure and hours per week criteria.
Amount and Period of Payment
- The payment is for the first 12 weeks of Parental Leave, taken in a continuous
period.
- The payment must relate to the leave taken and will not be paid when employees
return to work.
- Employees will be eligible for the payment for up to the full 12 weeks of leave (so long as they are still on leave) even if the child is miscarried, dies, is given up for adoption or if the employee is either dismissed or made redundant.
- Should the mother die or lose guardianship at the time of birth or during the period of leave, the payment entitlement can be transferred to an eligible spouse or partner.
- Under Fixed Term Agreements, entitlement to the payment will be available only to the end of the fixed term and up to the maximum of 12 weeks.
- The payment of Parental Leave will not reduce employee's entitlements to any employer provided entitlements such as weekly payments, lump sum etc.
Any such entitlements which form part of an Employment Agreement cannot be altered without the agreement of the employee.
- The payment is intended to replace a proportion of the employee's income.
The payment will fully replace the employee's ordinary income up to a maximum of $325 per week. Therefore an employee on approximately $17,000 per annum will virtually receive full income for 12 weeks.
The aim of the Bill is to ensure a higher proportion of the income of lower income mothers will be replaced than for higher income mothers.
- The Government plans to review the maximum rate (initially $325 per week) on the basis of movements in average ordinary income (on an ad-hoc basis) with an annual adjustment based on the average weekly earnings as measured by the Quarterly Employment Survey.
- The funds for Paid Parental Leave will be drawn from general taxation income.
Tax
The payments are taxable and subject to student loan repayments and child support deductions.
Employees receiving Paid Parental Leave will retain access to other benefits such as family assistance, however they will not be entitled to receive the Parental Tax credit (income tax benefit) in conjunction with the Parental Leave Payment.
Parental Leave Payments will be made direct to an employee's bank account.
Employer Requirements
The Bill suggests there will be limited compliance costs to employers other than substantiating the employee's application for payment by providing information on
tenure and earnings.
In Summary
-Employee eligibility has been amended to
-12 months service inclusive of periods of leave. However an employee is not eligible to apply for a second period of Parental Leave (2nd baby) until a full 12 months has elapsed from the date of return to work from the previous period of Parental Leave.
-An average of 10 hours per week over 12 months. To be eligible a person must be an employee and obviously can not be self employed.
-The amount of payment is equivalent to a full weekly ordinary income up to a maximum of $325 and up to a maximum of 12 weeks (continuous period of Parental Leave)
-The Bill now includes coverage for same sex partners.
-The payment may be transferred to a partner/spouse
-The Bill is to be effective from 1 July 2002 (expected date of delivery or
adoption.
