Ending employment during parental leave

Employees and employers have different obligations when ending employment during parental leave.

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Resigning while on parental leave

An employee can resign from their job while they're on parental leave. If an employee needs to give notice, they:

  • have to give the correct notice period to their employer
  • can use their parental leave as the notice period.

For more information about notice periods, see Resignation and notice.

Dismissal while on parental leave

If an employer dismisses an employee while they're on parental leave, usual rules about notice apply. Employers can either:

  • give the employee a notice period that starts and ends during the parental leave. This means the employee’s employment ends when the notice period ends.
  • terminate the employee’s employment immediately and make a payment in lieu of the notice period. For example, an employee who is entitled to 3 weeks' notice will get 3 weeks' pay instead.

For more information, visit Notice and final pay.

Reasons for dismissing an employee on parental leave

An employer can't dismiss an employee because they are pregnant, taking parental leave or have caring responsibilities.

This may be a breach of an employee’s general workplace protections.

For more information, see Protections at work.

This may also be discrimination, and it's unlawful to dismiss an employee for discriminatory reasons.

For more information, see Protection from discrimination at work.

Redundancy while on parental leave

If an employee's job is made redundant while on parental leave, the employer has to:

  • give them the correct notice
  • pay out any entitlements, including redundancy pay.

For more information see Redundancy.

Employers have to talk to an employee on unpaid parental leave if they decide to make a significant change in the workplace that will affect the status, pay or location of the employee's job.

Employers must take all reasonable steps to provide information to the employee about the change and an opportunity to discuss the effect on their role. This has to occur as the decision is made, not when the employee comes back to work from parental leave.

Parental leave entitlements when a business changes owners

When a business changes owners, also known as a transfer of business, there might also be a transfer of employment. This means that an employee keeps working at the business, but their employment transfers to the new business owner.

In this situation, employees entitled to unpaid parental leave with the old employer are still entitled to it with the new employer. This is because the new employer is required to recognise the employee's service with the old employer for parental leave entitlements.

This entitlement is recognised when the employee:

  • provides the correct notice and evidence of intent to take parental leave under the old employer, or
  • has already started unpaid parental leave with the old employer.

For more information, see Employee entitlements on a transfer of business.

Source reference: Fair Work Act 2009 s.117, 118, s83

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