Parental Leave and payment of Annual Leave

Q: Before one of our employees went on parental leave she had only accrued 3.63 weeks. The 4 weeks became entitlement while she was on parental leave. So, are you saying that these 4 weeks will be calculated using AWE, and the 4 weeks she became entitled to after returning from parental leave will be paid using both AWE and OWP?”


A: Think of leave in this way:

  • Anything before 12 months is accrual under the act, it is just 8% of gross (money), and
  • At 12 months, it becomes an entitlement (4 weeks, money and time).

So, this employee did not have entitlement before taking parental leave, but because it became an entitlement while on parental it can only use AWE as per the Parental Leave Act Section 46.

Under the act, in the 12 months on their return from parental leave, any entitlement can only use AWE.

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