Parental leave is an employee benefit which provides paid, or unpaid, time off work to care for a child or make arrangements for the child’s welfare. It includes maternity, paternity and adoption leave. The conditions surrounding leave are stipulated by international conventions and domestic law.
It is an important issue for stakeholders in the issue (most notably, employees with, or who will have, children; employers and government). This report is timely and relevant as the extension of PPL is an ongoing issue, one that is the subject of a number of reports, with the vast majority calling for longer PPL. Parental leave policies have become increasingly important both domestically and globally as rates of maternal employment continue to rise. Likewise, it is increasingly important in New Zealand as the number of employees receiving parental leave payments is steadily increasing, with currently over 23,000 families receiving assistance each year, although other figures have the number at over 26,000 families.[1] As such, the Labour Party has seen fit to address the issue in a members bill, drafted in June, proposing that paid parental leave be extended from the current 14 weeks to six months. This bill seeks to increase paid parental leave to 18 weeks in 2011, then 22 weeks in 2012 and finally 26 weeks on January 1, 2013.[2]
In light of this information, this report seeks to assess the value of extending PPL. This report will begin with a background on the evolution of PPL to its current state today, internationally and in New Zealand. I then outline my analytical framework I utilize in analyzing the data collected, outline my analysis and findings and discuss these. Ultimately, I propose that the current PPL scheme in New Zealand should be extended and offer some policy recommendations.
[1] Wilkinson, K. (2009). Parental leave payments increase. Retrieved August 12, 2009, from http://beehive.govt.nz; NZPA. (2009, June 18) Labour MP proposes longer paid parental leave. The New Zealand Herald. Retrieved August 12, 2009 from www.herald.co.nz
[2] NZPA. (2009, June 18) Labour MP proposes longer paid parental leave. The New Zealand Herald. Retrieved August 12, 2009 from www.herald.co.nz