Implementing generous and accommodating parental leave policies can help employers boost their productivity and bottom line, according to the Fair Work Ombudsman.

Fair Work Ombudsman Nicholas Wilson said employers who take the time to consider their staff needs can reap substantial rewards.

"Employers with parental leave policies that make employees feel valued can benefit from having more committed and productive staff," Wilson said.

"They will also improve staff retention, resulting in lower recruitment and training costs."

The Fair Work Ombudsman has produced a Parental Leave Best Practice Guide to provide advice for employers on how to develop policies that provide optimal support for employees who access parental leave.

"Best practice employers go beyond their minimum legal obligations and develop parental leave policies that are tailored to their employees' specific needs, while also being mutually beneficial to their business," Wilson said.

The guide suggests a range of features employers can consider in any paid or unpaid parental leave policy, including:

  • providing extended periods of employer-funded paid leave,
  • 'topping-up' an employee's pay during a period of Government-funded Paid Parental Leave to their full rate of pay,
  • continuing to pay an employee's superannuation contributions while on
    unpaid leave,
  • a return-to-work bonus, payable after an employee has returned to work following parental leave,
  • providing the option of taking paid leave at half pay,
  • allowing the non-primary carer to access existing leave entitlements, including personal leave, at the time of the birth, potentially for extended periods, and
  • allowing employees to purchase and repay longer periods of paid leave.

The Guide also discusses the importance of staying connected with employees while they are on leave.

"Good communication arrangements can help an employee on leave feel attached to the workplace, their career and their colleagues," Wilson said. Best practice policies also detail the support strategies the employer will use to ensure the employee has a smooth transition back into the workplace on their return from parental leave. "Employers should consult with employees when developing parental leave policies to ensure they understand their employees' needs and ideas," said Wilson.