Parental Leave

When an employee commences Parental Leave, it is recommended that the below steps are applied to record and process this within DataPay. These steps differ depending on whether the employee is going on unpaid or paid Parental Leave.

Unpaid Parental Leave

There are two different methods of putting an employee on Unpaid Parental Leave:

Employee Group

The 6.1 Parental Leave employee group should be added to the employee effective as at the first day they are on leave. If their current Pay Condition group is ‘with Pub Hols’ this will need to be changed to be the equivalent group without ‘Pub Hols’. This is to ensure that Public Holiday Taken payments are not automatically added to the employee while they are on Parental Leave.

The 6.1 Parental Leave employee group stops Annual leave accrual as during this time employees should not be accruing any leave entitlements or getting any Public Holiday payments.

Leave Request

The alternative method for Unpaid Parental Leave is to create a Leave Request of Parental Leave for the entire duration of the Parental Leave and apply this to the employee Pay Packet each Pay Run. This method does not automatically prevent leave accrual, so the employee will need to be manually changed from Standard to Proportional Accrual if required. They will also still need to have their Pay Condition employee group changed to a ‘No Pub Hols’ group.

Paid Parental leave

Government Paid

Government paid Parental Leave can be set up as Taxable Allowance and as a Normal Payment as below, and applied to the Pay Packet as necessary.

 CSA will usually supply a letter outlining a specific period for the payments based on employees pay frequency (W/FN/M)

https://www.humanservices.gov.au/individuals/services/centrelink/parental-leave-pay

Employer Paid

Employer paid Parental Leave needs to be set up as a Take leave type with a Generic Payment allocator. These payments are taxable and will contribute to accrue leave hours

Long Service Leave Adjustment

The duration of time spent on Parental Leave should not count towards an employee's period of employment for the purpose of calculating Long Service Leave. Within DataPay this adjustment can be made by moving the start date of the employee's Long Service Leave Rule Template forward by the length of time spent on Parental Leave.