EEO Trust - Work & Life Special Bulletin details the Paid Parental Leave Scheme
announced  November 2001

Contents
Scheme details
Opportunities for employers
Background on PPL

Attached - Government Question and Answers on Paid Parental Leave (Word Document)

Scheme Details

The Basics:
* Government funded
* 12 weeks duration
* Starting date of scheme 1 July 2002

Eligibility
Due date of baby 1 July 2001 or later
In paid employment with a single employer for 10 or more hours per week for
a year before due birth or adoption date
Mother can transfer the payment to her partner if he/she is also eligible
Includes people in same sex relationships

Payment
$325 gross per week or 100% of previous weekly earnings whichever is lower
$325 equates to $256.75 net based on 21% tax rate
Not means tested
Payment equivalent to 53% of average weekly earnings (male and female)

Parental Tax Credit
Scheme continues
Parents can choose whether to access PPL or PTD

How many people?
Government estimates that 20,000 mothers will qualify for PPL
Half of them will receive 80 percent of their earnings
40 percent will receive 100 percent of their earnings

Cost to Government
Extra money of about $42m a year

Scheme review
Planned for 12 months after implementation
Includes funding option and entitlement extensions

Further information
www.eeotrust.org.nz
www.executive.govt.nz

New scheme creates opportunity for employers

The Government's new paid parental leave scheme will help employers gain the
business benefits that paid parental leave and other work and life
initiatives can deliver.
"Almost all organisations say 'Our people are our strength'," says EEO Trust
Executive Director, Trudie McNaughton. "This clarification of the
Government's paid parental leave scheme will prompt employers to look
closely at how they manage their employees.
"Paid parental leave is just one of a package of initiatives employers use
to help new parents make the transitions from paid work to home and back to
work. If employers can support their staff through these transitions,
they'll be much more likely to come back to work and much more productive
when they get there.
"Up to 34 percent of New Zealand workplaces are already paying for parental
leave. These employers have found that they can maximise the value of paid
parental leave by combining it with other work and life initiatives, some
costing very little.
"For example, if colleagues and managers keep in touch with staff who are on
leave they will continue to feel involved in the workplace and are more
likely to return to work. Providing training to staff while they're on leave
to keep their skills up to date will mean they're more productive when they
return to paid work."
Other work and life initiatives offered in New Zealand workplaces include
providing work and family information, providing facilities for women to
continue breastfeeding, offering the option of returning to work part-time
or working flexible hours, providing technology to parents who wish to work
from home, or providing childcare subsidies or facilities.
"These aren't just benefits for staff, they have real business pay-offs,"
says Trudie McNaughton. "Staff turnover is very expensive, for example Clear
Communications says it saved $750,000 in an 18 month period as a result of
work and life initiatives including paid parental leave. Workplaces which
help staff maintain work/life balance tend to keep staff."
Trudie McNaughton says that organisations which already pay for parental
leave will be looking at how they can add to the government scheme to
maintain their "employer of choice" positioning.
"Those who are already offering other supports to new parents are in a good
position to assess the value of existing initiatives and consider other ways
to help improve work/life balance.
"Some organisations might top-up the government scheme financially, perhaps
by extending the eligibility critieria of the government package. In this
way they can retain their competitive edge in the labour market."


The Background

Previous legislation provided for unpaid parental leave with entitlement
restricted to employees who had worked for the same employer for at least 10
hours per week for at least one year by the time of the birth. The Parental
Tax Credit was introduced in 1999 and provided a means-tested payment of up
to $150 a week for eight weeks, payable to working families.

Employer funded PPL in New Zealand
Estimates of the prevalence of PPL funded directly by New Zealand employers
prior to the introduction of the new legislation vary from just 13% up to
43%. Just over a third of employees (35%) currently have some form of PPL in
their contracts.
In terms of length of leave, the EEO Trust's Diversity Survey (2001) found
that 34% of respondent organisations offered six to seven weeks leave, 26.5%
said the length of paid leave varied.

The International Picture
120 ILO countries provide PPL. New Zealand was one of three out of 29 OECD
countries that had no PPL provision, in company with Australia and the US.
The European average is 22 weeks on full pay. The UK recently increased
state-funded maternity leave payments for all mothers, whether or not they
are in paid employment, from £60 to £100 a week, and increased the duration
of payments from 18 to 26 weeks. In addition, new parents receive a £1000
baby bonus.

Maximising the benefits of PPL
Employers will not bear the financial costs of the government-funded PPL but
can certainly reap the benefits by giving some thought to how they can
support staff on PPL. PPL is most effective as a human resources tool when
supported by a much wider package of family-friendly, flexible working and
work/life balance measures. These help ensure that parents don't lose touch
with their workplaces while they're on leave and have the support they need
when they return to work. They are therefore more likely to return to work
and to be effective when they get there.
Many New Zealand organisations have already successfully combined paid
parental leave with work/life initiatives. For example, some of the entrants
and winners of the EEO Trust Work & Life Awards 2000 and 2001:

Stagecoach New Zealand Ltd
As well as paying eight weeks maternity leave, Stagecoach offers a parental
management programme comprising:
S First Steps Parents resource kit with:
- First Steps Carry Bag
- First Steps Booklet
- Early Childhood Development Unit Booklets
- Plunket Booklet - "Thriving Under Fives"
- Children's storybook - "Please don't chat to the bus driver"
- Parental Leave and Employment Protection Act 1987 application forms
S 'Stork Report' agreement detailing a communication plan during PPL to
minimise isolation and keep the employee informed.  Employees on parental
leave are also invited to participate in workplace activities such as
training sessions, social events and the use of the Open Learning Centre.

Clear Communications
S 14 weeks paid maternity leave
S an additional four weeks pay to help mothers who wish to return to work
early instead of taking extended leave
S flexible working schedules
S remote access to the LAN and teleworking options
S a Kiddi's Korner in the cafeteria
S and a kids' christmas party

UDC Finance Limited
S subsidised childcare
S special leave for new fathers
S unlimited domestic and sick leave so employees can care for themselves and
their families

HortResearch
S six weeks paid parental leave
S a nanny network
S special leave when a staff member needs leave for family reasons
S a dependent care allowance when staff are travelling for work or working
after hours and need a carer at home
S a referral programme for staff wanting help with family issues