Increased Paid Parental Leave on the way, eventually

Speaking at the New South Wales state Labor conference on 15 October, Prime Minister, Anthony Albanese, announced that the government-funded Paid Parental Leave (PPL) scheme will increase up to a total of 26 weeks, though the additional weeks of leave will be phased-in gradually, with the first two-week increase not occurring until July 2024.

The current scheme provides for 18 weeks PPL paid at the National Minimum Wage (NMW) plus an additional two weeks for ‘Dad and Partner Pay’, also paid at the NMW. The proposed amendments to the scheme will see the two-week ‘Dad and Partner Pay’ benefit retained for two-parent households but it will be rolled into the universal PPL benefit from July 2023 (totalling 20 weeks PPL, including the ‘Dad and Partner Pay’ benefit). The PPL benefit will then increase to 22 weeks from July 2024, then to 24 weeks from July 2025 and achieve 26 weeks from July 2026. Two weeks of PPL (reflecting the traditional two-week ‘Dad and Partner Pay’ benefit) will continue to be offered on a ’use or lose it’ basis, with the Government indicating this will encourage more dads and partners to access PPL, “so that both parents can share in those precious early days and share the caring responsibilities more equally”.

From July 2026, where two-parent households access the full benefits of the scheme, the entitlement will consist of 26 weeks PPL, including the original ‘Dad and Partner Pay’ benefit, all paid at the NMW. From July 2026, single-parent households will be eligible for the full PPL entitlement of 26 weeks, paid at the NMW, “so their children don’t miss out”.

Further detail on the upgraded PPL scheme will be released by the Government at the end of October, when it delivers its budget on 25 October.

Government commences consultations on proposed IR changes

In September, the Department of Employment and Workplace Relations began consulting on the Government’s plans to change the Fair Work Act 2009 (the Act), including the contested proposals for multi-employer bargaining and the Better Off Overall Test (BOOT).

Workplace Relations Minister, Tony Burke, flagged the commencement of consultations following two sessions focussed on IR issues at the recent Jobs and Skills Summit. Minister Burke signalled his eagerness to consult about amendments to the Act where the Government considers itself “ready for action”, including:

• improving access to flexible working arrangements and unpaid parental leave;

• bolstering protections for workers against adverse action, discrimination and harassment;

• ensuring workers and businesses can negotiate in good faith for agreements that benefit them, extending to small businesses, women, care and community services sectors and indigenous people;

• making sure workers and businesses have “flexible options” for reaching agreements, including removing “unnecessary limitations” on access to single and multi-employer agreements;

• allowing businesses and workers who already successfully negotiate enterprise level agreements to continue to do so;

• removing unnecessary complexity for workers and employers, including making the BOOT simple, flexible and fair;

• giving the Fair Work Commission the capacity to proactively help workers and businesses reach agreements that benefit them, particularly new entrants and small and medium businesses;

• providing proper support for employer bargaining representatives and union delegates; and

• ensuring the process for agreement terminations is “fit for purpose” and fair, while providing for the “sunsetting” of so-called zombie agreements.

The Department of Employment and Workplace Relations has recently warned stakeholders not to go public regarding consultations, with the Albanese Government’s first tranche of IR legislation expected to be introduced into Federal Parliament by early November. Federal Cabinet has already signed off on the proposed ‘Secure Jobs, Better Pay Bill’, purportedly designed to help low-paid employees (particularly women) negotiate higher pay packets and better conditions, which is scheduled to be tabled in Parliament on 27 October.