How to determine your company’s parental leave policy

We want the best for our employees. We want them to not only excel at work, but to have a thriving life outside of it. This means we need to consider how our parental leave policy fits into supporting a better work life balance.

Often, legislation governs the minimum requirements when it comes to parental leave. This differs across the world, with some countries offering up to a year of leave — while others mandate zero. 

Parental leave offers parents and carers the much-needed time and space to care for their family. It’s also an opportunity for us as employers to stand out, support our employees, and attract the very best talent with competitive policies and support programs.

Let’s explore parental leave in more detail and find out exactly how to put together a supportive, competitive, and inclusive parental leave policy. 

What is parental leave?

Parental leave is a relatively new term that entitles parents or caregivers to a period of time off, paid or unpaid, to care for a child. It’s a benefit designed to support families and enable parents to balance their family commitments with work.

In the past, many organizations would have separate maternity and paternity leave policies. Now, our policies are much more inclusive. Parental leave covers a wide range of scenarios — including the birth of a child, adoption of a child, or the placement of a child in foster care. It also applies to a wider range of new parents and caregivers than a maternity or paternity leave policy, and has become the preferred term for many organizations. 

“One of the more overlooked but certainly crucial aspects of writing a parental leave policy is ensuring the use of inclusive language. A lot of companies have replaced outdated or gender-exclusive terms from their policies, such as the change of “maternal leave” to “parental leave.” However, often they will continue using the parent's names as “mother” and “father” when in retrospect, they should be using “parent.”” — Natalia Ochenkowska, People Ops at spacelift.io

What parental leave looks like around the world

Usually, parental leave is mandated by law and offered at a federal level. These laws and regulations then inform employers what they need to do, and guide what to include in a parental leave policy. 

Although the needs of parents and carers remain similar across the world, different countries have drastically different approaches to parental leave. Let’s explore what parental leave looks like across the world. 

United States

It’s surprising to many that the US has no federally mandated paid parental leave. It’s the only developed country not to offer this to soon-to-be parents. This lack of legislation means that only 19% of employees have access to any paid family leave through their employer.

While there’s no federal access to paid leave, some employees are entitled to support under the Family and Medical Leave Act (FMLA) — although research shows 44% of workers miss out on qualifying. This law provides up to 12 weeks of unpaid leave for employees that meet the eligibility requirements, and can be taken to support birth, adoption, and foster care. Not all employees are eligible, and the time off remains unpaid — however their job is protected while on leave.

When you consider that many countries offer 39+ weeks of leave, this lack of paid family and medical leave means many US-based families are struggling at a time when they need support the most. It also presents an opportunity for your company to go beyond what’s required and introduce a generous parental leave allowance as part of your benefits package. 

That’s what US baby formula company, Bobbie, has done. The founding team launched #TakeOurLeave and introduced a policy that gives birthing and non-birthing employees up to 12 months leave to care for their child. 

United Kingdom

In the United Kingdom, parents have greater access to parental leave. Mothers can access maternity leave that lasts for up to 52 weeks, with 39 of those weeks as paid leave. Throughout this period, their jobs are protected. Fathers (or partners) are entitled to up to 2 weeks of paid paternity leave, if they meet eligibility requirements. 

Parents in the UK can choose to access shared parental leave to care for their new child, but this is taken instead of the maternity and paternity leave. After the initial two week period, eligible employees can choose to share the remaining 50 weeks of leave on whichever basis they prefer. The first 37 weeks are paid, with the remaining 13 unpaid — similar to how maternity leave works. 

While the UK offers access to paid leave and more flexibility around who can take it, eligibility requirements still apply. Still, the access to a decent period of paid leave means family members can spend more time together, and the return to work is often smoother.

Australia

Like the UK, Australia offers a mix of unpaid and paid parental leave. Primary carers can access up to 18 weeks of Parental Leave Pay (PLP), paid at the National Minimum Wage. This can be split into a first and second period, with the second period being taken as flexible PLP that supports a more gradual return to work. Partners can enjoy 2 weeks paid leave at the same level, if eligible. 

These paid leave entitlements are supported by up to 12 months of unpaid parental leave. This can be used after childbirth or adoption, whether the employee is the primary or a supporting carer. Eligibility requirements apply to both types of leave, and often the employee needs to be employed for a set amount of time.

Remember, these are the minimum of what’s expected. If your organization can manage it, do more. Consider offering the highest level of support across countries too, if some of your employees are eligible for more than others. Go beyond the basics and do everything you can to support your employees through this wonderful but challenging period of their life. 

What to include in a parental leave policy

Understanding what’s required of you as an employer is the first step in putting together your parental leave policy. Next comes the most important part — building a policy that helps attract, retain, and empower your employees. 

Here’s what to include in your parental leave policy so it’s clear, comprehensive, and supportive. 

Eligibility requirements

Not everyone is eligible for parental leave in most organizations, so cover eligibility requirements first. That way, your employees know if they’re likely to be successful in applying for the leave without getting stuck into all the details. 

Follow any federal laws and make sure your eligibility requirements meet them. Common eligibility requirements include the length of time an employee has worked for you, and/or an amount of hours per week worked.

Be as fair and reasonable here as you can, and aim to make your policies available to as many of your employees as reasonably possible. Your parental leave policy should be inclusive and applied fairly across your company.

The definition of a primary caregiver

In the past, many maternity and paternity leave policies have alluded to primary and secondary caregivers. This is a throwback from the past, when traditionally a mother would take on the role as primary caregiver. This is no longer the assumption, which means the phrase “primary caregiver” is often considered to be out of date.

Sometimes legislation will reference a primary caregiver — particularly when it comes to defining eligibility and pay arrangements. You don’t have to stick with this language for your policy, however. You can choose to apply the same level of support to your employee, even if they would traditionally be considered a “secondary” caregiver. In fact, it’s a thoughtful and inclusive practice to treat both parents or carers equally.

How much time off is available

One of the first areas to address in your parental leave policy is how many weeks of parental leave you offer. This must be equal to or greater than what’s required of you by law. 

This should be addressed early on in your policy, so that people can quickly understand their options. Outline the statutory leave entitlements, plus anything that you offer above and beyond this. 

Whether parental leave is paid or unpaid

Once you’ve established how many weeks of leave are available, you should set out whether this is unpaid, paid, or a mix of both. 

In countries where paid parental leave isn’t legally mandated, your policy may mention unpaid leave only. In most countries around the world, there’s an expectation of some paid leave — even if it’s only the first week or first month. 

Be clear about how many weeks of paid and unpaid leave are available, and how they can be taken. You should also set out what rate this paid leave is at, even if that’s shown as a percentage of the employee’s typical salary or hourly rate. 

Recent research from the EU shows that offering paid parental leave can help reduce gender pay gaps and enable women to join or return to the workplace. In our search for a better world for all, try to include some amount of paid parental leave if you can — even if it’s only for the first few weeks.

If it’s not within your power to make your paid leave stretch as much as you’d like, Mitch Chailland, President of Canal HR has some suggestions: 

“If you can’t provide total paid leave for a set amount of weeks, offer instead paid leave for a smaller amount of time, and plan for gradual reintegration into your workforce over the next few weeks. Allow your employees to work from home and maintain a culture of trust between you and your workers. The most important thing is that you provide your employees with the help they need to be productive workers and care for their families. That is always the bottom line; writing a plan that reflects this can look different for everyone.”

Parental leave benefits and equity entitlements

Taking a period of time away from work often has an effect on employee benefits, health care coverage, and equity entitlement. It’s useful to explain what happens to benefits and support while on parental leave, so your employees have a full understanding of the situation.

In many cases, regulations support the continuation of benefits — like the FMLA does in the US. Under this law, the employee’s group health benefits are maintained while they’re away. In the UK, pension contributions continue while an employee is on maternity leave. 

Whether parental leave has an impact on benefits or not, you should cover this in your policy. This ensures there’s no confusion over whether benefits, equity, and pension contributions continue. 

Access to additional support 

While you’re covering benefit entitlement, it’s also useful to highlight any additional support your employees can access through your human resources team or other providers. These might be free antenatal classes they can book, career or growth coaching on their return, child care assistance, or paid family leave programs — like Cleo’s coaching and support programs.

Pregnancy, adoption, fostering, childbirth, and the first years of parenting are all times where support is most needed. It’s not a vacation, something that the Tokyo Government has recently highlighted:

Offering extra programs, classes, benefits, and perks is a wonderful way to demonstrate that you care and create a parent-friendly workplace. 

Flexible working options

Family life can present some scheduling challenges, and some emotional ones too. Give your employees the flexibility to personalize their return to work, so the transition from a leave of absence feels more comfortable. 

Set out all the different flexible working options your employees can access. This might include flexible working hours, working part-time, a phased return to work, or remote working. Be as generous as you can here, and be open to suggestions from your employee — they may have a fantastic idea for flexible working that benefits everyone.

How the return to work process works

When it’s time to return to work, your employees will want to know what happens. Clearly set out what your return to work process is, so they can plan ahead and feel ready for when the day happens. 

Outline how you plan to bring your employee back to work, and what support is available. Talk about career coaching, skills development, and welcome lunches with the team. Describe what the experience fees like, and also offer practical guidance in terms of what the schedule might look like. 

How to request parental leave

It might seem obvious, but it’s easy to miss this last item off the list — how to request parental leave. Often it’s as simple as making a request with a manager, but this section should also explain the process and what happens. 

Let your employees know how any parental leave requests are handled, and when they can expect a response from their manager. Set out any eligibility requirements, like the period in which they should request leave. 

You should also cover what happens in unexpected circumstances, like an emergency foster placement, pregnancy complications, or an early birth. While these won’t apply to every parent or carer’s journey, it’s important to recognize them and offer support and reassurance to those who may need to make an urgent request.

Create a better parental leave experience with Pyn

Preparing for parental leave or returning to work after parental leave feels different for everyone. Some parents or carers are excited and ready, while others find it a real struggle. Design a return to work process that supports your employees to begin their leave or return to work in the best way possible. 

One way to prepare your employees for parental leave and make the return to work process even better is through personalized communications. 

Pyn is an employee communications platform that empowers you to connect with your employees at just the right moment. Prompt managers to check in before your employee returns to work, and offer templates to help them support their team member back in the most welcoming way. 

Our customizable messages, or Pyns, help you stay in touch and guide your managers and employees through the return to work process. Here’s a look at some of our most popular Pyns for parental leave: