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.
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 on no less favourable terms and conditions
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:
When an employee holds a "key position" that cannot reasonably be filled temporarily
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" or the role becomes redundant while they are on parental leave.
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
Important: The employer bears the burden of proving this classification. Misusing the “key position” exemption could lead to a personal grievance. In practice, very few positions are considered key positions.
The "period of preference" explained
If you determine that an employee holds a key position that cannot be kept open:
When an employee applies for parental leave, you must advise them within 21 days that you are not able to keep their position open and that they will enter a 26-week period of preference when their parental leave ends.
To confirm the start of their period of preference, the employee must give you 21 days' notice in writing.
During the period of preference, 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 those of their previous role, including:
The same or similar pay
Similar responsibilities and seniority
Comparable working hours and location
What about redundancy?
See: Managing redundancies for employees on parental leave: NZ legal requirements.
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
For further enquiries
While we work to keep our information current, the last word lies with the relevant government agencies:
Contact Inland Revenue (IRD) for information on government-paid parental leave.
For everything else related to parental leave entitlements, contact the Ministry of Business, Innovation and Employment (MBIE) through Employment New Zealand.
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.
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 22 May 2025.
Stephanie Pow
Founder & CEO of Crayon
