The Fair Work Act 2009 has significantly amended the Federal Government's previous approach to an employee's entitlement to take leave upon the birth of a child.

Following on from these changes, the Paid Parental Leave Bill 2010 was passed by the Federal Parliament in July 2010, introducing Australia's first government-funded national paid parental leave scheme. This continues the government's recent focus on the 'modern family unit', recognising the changing roles of parents.

In most cases the entitlement to receive paid parental leave through the government scheme should not affect paid parental leave provided by an employer. An employer cannot withdraw an entitlement to employer-funded paid parental leave available through an industrial instrument or employment contract during the life of that instrument or contract. However, whether a policy of paid parental leave (as found in an employer's HR or staff policies) is an employee entitlement or can be withdrawn unilaterally would depend on the wording of individual policy documents and practices within that employer. These situations would need careful consideration on the individual facts, and legal advice should be obtained wherever there is uncertainty.

An employee's entitlement to receive paid parental leave under the Paid Parental Leave Act 2010 should not be confused with an employee's entitlement to take parental leave pursuant to the Fair Work Act 2009. The qualifying requirements are quite different and being eligible for one does not necessarily mean an employee is eligible for both.

Further details are available at Mondaq.