Bosses plan baby leave wind-back


EMPLOYERS are being warned not to use the January 1 introduction of the government's paid parental leave as an excuse to water down existing maternity entitlements to save money.

A survey of 1860 organisations monitored by the government's Equal Opportunity for Women in the Workplace Agency found that more than one in 10 were planning to change their existing maternity leave provisions as a result of the government's decision to introduce a taxpayer-funded scheme.

The finding has raised concerns that some companies could use the scheme, which will cost the budget about $260 million a year, as an excuse to wind back spending to support working mothers.


The survey, taken last financial year, found that 11 per cent of organisations intend to make changes in response to the government scheme. A further 62 per cent told the agency they did not know if they would change existing entitlements. Only 27 per cent said they would definitely leave existing provisions intact to complement the government scheme.

Families Minister Jenny Macklin said the government expected ''our paid parental leave scheme to be provided in addition to existing employer-funded paid parental leave schemes'', warning the situation would be ''closely monitored'' as the scheme was implemented in the new year.

She said business groups and unions had also told the government they expected employers to retain their schemes. She was not aware of any employers scaling back their schemes.

''The fact that many employers have paid parental leave schemes in place now means that they recognise the value of being an employer of choice and the importance of family-friendly workplace conditions to attract and retain staff,'' Ms Macklin said.

Working mothers earning up to $150,000 a year with babies born after January 1 will be entitled to 18 weeks of parental leave paid at the minimum wage, now $570 a week before tax. Almost 55 per cent of the organisations covered by the agency offer some form of paid maternity leave, up from about 36 per cent in 2003.

The agency's annual report, released last week, also named 12 Australian companies that failed to comply with laws covering the equal treatment of women in the workplace, including wine company Tyrrell's Vineyards, Sanity Entertainment and clothing retailer Rivers Australia.

All organisations with more than 100 employees are required to report yearly to the agency on removing barriers to women entering and advancing in their organisation.