Friday, 18 June 2010

Parental leave.

Legislation has passed to bring Australia into line with the rest of the developed world when it comes to parental leave. This country - and the United States of America - were the only such countries without a universal scheme.

New parents will be entitled to eighteen weeks paid leave at the average wage level of $ 570 per week when a child is born - or adopted !

To qualify, they must have worked for at least 330 hours in ten of the thirteen months prior to that birth - and be under earnings of $ 150,000 a year.

The aim is to allow mothers - or fathers - to bond with the child as either is entitled to this period of paid time off work. Retention of their former job is guaranteed - but there is a down side to the legislation.

Basically, the government has stuck every large and small employer with an added business cost. In addition to the eighteen weeks leave they can opt to stay home for a year without pay - and still demand their old job back.

Problem is - in this fast changing world skills go out of date at diabolical speed - and employers have to get a temporary employee to fill the gap, and the law concerning terminating such a person is unclear - and could lead to costly litigation.

Few would argue that parental leave is not a good thing, but it comes at a cost. Every business in the land has just been saddled with not only a direct new addition to it's wages bill - but the problem of trying to juggle staff numbers to keep the business viable.

The government - with the approval of others in the parliament - has just bestowed a gift to families - by giving away other people's money !

And added another financial liability to all who employ people !

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