Preston Russell Law - Legal Services for Southern People

Parental Leave for The Self Employed

by Mary-Jane Thomas, partner category Employment Law

 Who can take parental leave?

To be eligible for parental leave payments birth mother/adoptive parents must have worked an average of at least 10 hours a week over the 6 or 12 months immediately before the expected date of delivery or adoption

You must have been:

• providing goods or services for hire or award under a contract for services
• carrying on a business
• working for a trust in a business carried on by the trust

If you meet the criteria you will be entitled to 14 weeks parental leave payments. If you are eligible both as an employee and self employed person, you can apply separately as both, but your payment will not exceed the maximum amount (currently $372.12 before tax).

Who pays?

You do – through your taxes. It is paid by the Government.

How often can I take parental leave?

As many times as you like as long as 6 months elapses between each period of leave – One paid parental leave per child.

Do I have to take leave to receive payment?

Yes, but it is accepted that as a self employed person you may:

• maintain a level of oversight over your business
• do occasional administrative tasks to ensure continuity during leave
• receive income during the period of paid leave that was earned before leave commenced.
• receive income because of work undertaken by other people in your business during the course of paid leave.

Who do I apply to?

The IRD and you will need to prove your self employed status, net income and average weekly earnings with a declaration from a chartered accountant or yourself.

The best place to go for information about paid parental leave is www.ers.dol.govt.nz. The website gives examples of letters that can be downloaded when you are applying and application forms etc. There is also a calculator to help you work out your entitlements. If the web site only makes you more confused, call 0800 20 90 20 and talk to someone at the Department of Labour.