Parental Leave and the Employment Protection Act 1987

The Parental Leave and Employment Protection Act 1987 (often called the Parental Leave Act) is the main law in New Zealand that gives employees the right to take time off work to care for a new baby or a child under six. It also ensures their job is protected while they’re away.

For New Zealand employers, this law is important because it sets out who can take parental leave, how much time they can take, and what rights they have when they return. Getting it wrong can lead to employment disputes or even claims under the Employment Relations Act. More importantly, getting it right helps create a fair, family-friendly workplace where employees feel supported during major life changes.

‍ In this guide you’ll learn:

• The basic rules and definitions under the Parental Leave Act (1987)
• Eligibility tests for parental leave and for paid parental leave
• Parental leave payment guide

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What Is the Parental Leave Act?

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The Parental Leave and Employment Protection Act 1987 sets out minimum rights for employees who become parents or primary caregivers. Its main goal is to allow time off work for the arrival or care of a child, while protecting employment status.

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The Act guarantees job protection during leave and works alongside New Zealand’s Paid Parental Leave scheme, which is managed by Inland Revenue (IRD). Employers aren’t required to pay wages during this time, parental leave is generally unpaid, but eligible employees may receive payments from the government.

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Who Can Take Parental Leave

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A primary carer is the person mainly responsible for a child under six;  this includes birth mothers, partners, and adoptive parents. A partner can take separate unpaid leave or share extended leave if they meet the work and time requirements.

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Employees qualify for parental leave if they’ve worked an average of at least 10 hours per week for their employer over either:

• The six months before the baby’s due date (for up to 26 weeks of leave), or
• The twelve months before the due date (for up to 52 weeks of leave).

To qualify for paid parental leave payments, employees must have worked at least 10 hours a week in 26 of the 52 weeks leading up to the due date or the day care starts.

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Paid Parental Leave Payments

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Paid parental leave is funded by the government through IRD, not by employers. Eligible employees can receive up to 26 weeks of payments while they’re the primary carer. The maximum weekly rate is updated annually.

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Even if an employee doesn’t qualify for paid parental leave, they may still be eligible for unpaid leave under the Act. Employers may also choose to top up payments as part of their own parental leave policy, although this is optional.

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Common Mistakes to Avoid

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Declining a leave request without checking eligibility

• Risk: Could breach the Act.
• Do instead: Verify eligibility first using Employment NZ's checklist.

Not keeping the job open or a comparable role

• Risk: May lead to a personal grievance.
• Do instead: Clarify whether the role is a "key position" and document your decision.

Ignoring employee communication during leave

• Risk: Breaches the good faith obligation.
• Do instead: Keep regular updates and use "keeping in touch" days where appropriate.

Misunderstanding paid vs unpaid leave

• Risk: Can create payroll confusion.
• Do instead: Separate government payments from company payroll.

Failing to include parental leave in policies

• Risk: Causes inconsistency.
• Do instead: Add a clear parental leave section to employment agreements.

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Key Takeaways for Employers and Employees

• The Parental Leave and Employment Protection Act 1987 gives eligible employees the right to take time off work and protects their job while they’re away.
• Paid parental leave is managed by Inland Revenue, not by employers.
• Employers must respond to parental leave requests in writing and keep roles open unless they qualify as key positions.
• Employees should give enough notice, confirm eligibility early, and stay in touch during leave.
• Clear policies, good communication, and a supportive approach make the process smoother for everyone.
• Following the law helps avoid disputes and builds stronger, family-friendly workplaces across New Zealand.
  

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