Preston Russell Law - Legal Services for Southern People

Parental Leave and Job Security

by Mary-Jane Thomas, partner category Employment Law

When you apply for parental leave, your employer is required by the Parental Leave and Employment Protection Act 1987 to notify you whether your job can be kept open or not. Unless you hold a key position for which a temporary replacement would be impracticable, or your position genuinely becomes redundant, it is presumed that your job will be kept open.

But what happens when circumstances at work change while you are on parental leave?

Ms H was a Marketing Business Consultant employed by Bakers Delight (BD). She was advised she was entitled to one year’s parental leave and that her position would be available to her upon her return. BD hired a temporary employee to cover Ms H’s absence. However, this person left unexpectedly and another employee was appointed permanently to Ms H’s position. Ms H only found out about her permanent replacement when she visited staff with her baby.

BD subsequently sent Ms H a letter informing her of the changes and offering her another position as a business consultant upon her return.

By replacing her with a permanent employee, BD effectively dismissed Ms H while she was on parental leave, thus BD was in breach of the Act. The Employment Relations Authority also held that even if BD had had a lawful reason for appointing someone else, Ms H should have been consulted first. Consultation may have raised the possibility of Ms H returning to work earlier.

Eventually BD realized its mistake and that by law it had to offer Ms H her marketing job back, but they did not notify Ms H of this and nor did they meet with her personally. This caused Ms H to be mistrustful and suspicious of her reinstatement. Although Ms H was eventually reinstated to her marketing role, the Authority held that BD was in breach of their obligation under the Employment Relations Act to act in good faith. Good faith would have required better and timelier communication.

The stress this situation caused Ms H was acknowledged by the Authority ruling that the employer pay Ms H $3000 in compensation.

I feel like a broken record saying this again, but I cannot stress enough the importance of open communication in employment relationships. Be open, be honest and communicate with your employees at all times.