Job protection during parental leave: A guide for NZ employers

For New Zealand employers, managing parental leave involves specific legal obligations regarding job protection. These requirements ensure that employees can take necessary leave for family responsibilities without risking their employment or career progression.

It's worth noting that these protections apply to all eligible employees—mothers, fathers, partners, and adoptive parents alike. While mothers still take the majority of parental leave, an increasing number of fathers and partners are exercising their rights to be involved in childcare from the early stages.

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Basic job protection principles

Under the Parental Leave and Employment Protection Act 1987, employers have a general obligation to:

• Keep an employee's position open during their parental leave

• Allow the employee to return to the same or a similar position after their leave ends

• Ensure the employee doesn't lose career opportunities or progression due to taking parental leave

There are only two legal exceptions to this job protection requirement:

1. When an employee holds a "key position" that cannot reasonably be filled temporarily

2. When a genuine redundancy situation occurs (covered in a separate article)

Short-term vs. long-term parental leave considerations

The duration of parental leave affects your obligations:

• For employees taking four weeks or less of parental leave, you must allow them to return to the same position (comparable to taking a month-long holiday)

• For employees taking more than four weeks, the default expectation is still that they return to the same role unless they occupy a "key position"

What constitutes a "key position"?

A "key position" is one where:

• Finding a suitable temporary replacement is not reasonably practicable due to the unique nature of the role

• The role is essential to the functioning of your business

• The skills, qualifications or experience required make temporary coverage impractical

Factors to consider when determining if a position is "key" include:

• The size of your organisation

• The specialised skills or qualifications required

• The availability of suitable temporary staff in your industry or location

• The impact on business operations if the position remains unfilled or is filled by a less qualified person

• The duration of the parental leave period

In practice, very few positions are considered key positions.

The "period of preference" explained

If you determine an employee holds a key position that cannot be kept open:

• You must notify the employee in writing before their leave begins when you respond to their request to take parental leave

• A 26-week "period of preference" is triggered after their parental leave ends

• During this period, if any position becomes available that is substantially similar to their original role, you must offer it to them first

• The offer must be made before considering other candidates

• The position must have terms and conditions that are no less favourable than their previous role

Documentation and communication requirements

Proper documentation is crucial for compliance:

• Any determination about a key position must be made and communicated in writing

• Communications should clearly explain the reasons for the determination

• Records should be kept of all information considered in making the determination

• Regular contact should be maintained with employees on leave regarding any relevant workplace changes

How Crayon can help

At Crayon, we specialise in helping New Zealand employers develop policies and processes that support both their business needs and their legal responsibilities.

Need specific guidance on handling job protection during parental leave in your organisation? Contact the Crayon team for personalised advice tailored to your business needs.

How Crayon can help

At Crayon, we specialise in helping New Zealand employers develop parental leave policies and processes that support both their business needs and their legal responsibilities.

Book a free policy review to chat with us about optimising your parental leave processes and ensuring they meet all legal requirements while supporting your business objectives.

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Now for the important legal part: This article provides general information only and should not be relied upon as legal advice. For specific guidance related to your organisation's circumstances, please consult with a qualified employment law professional. The information in this article is current as at 11 April 2025.

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Stephanie Pow

Founder & CEO of Crayon

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