Returning From Parental Leave: What Employees Are Asking — and What Employers Need to Know

Becoming a mother has provided me with one of the most valuable professional development experiences of my career.

Through interactions with other first-time mothers in community groups and activities, I have gained insight into the common questions and concerns raised by employees returning from parental leave.

These conversations have revealed a significant and consistent gap between what employees understand their rights to be and the practices being applied by some employers. As a Compliance Consultant, many of the concerns raised are entirely preventable — and the legal and reputational consequences of getting them wrong are far greater than the investment of getting them right.

This article aims to assist employers in understanding their rights and obligations and their ability to transparently communicate these to employees who are returning from parental leave. The following are some of the common questions and concerns raised by employees returning from parental leave, and the key considerations for employers.

First: An Important Update to the Government’s Paid Parental Leave Scheme

As of 1 July 2026, the Government’s Paid Parental Leave scheme increases from 24 weeks (120 days) to 26 weeks (130 days) — the final step in a phased increase that has added two weeks per year since 2023–24. Payments continue at the National Minimum Wage and, for children born or adopted from July 2025 onward, the Government also pays 12% superannuation contributions directly into the recipient’s super fund.

Of the 26-week total, 22 weeks are available to be shared between eligible parents, and four weeks are reserved exclusively for the secondary parent or partner. Single parents retain access to the full 26 weeks.

Importantly, this Government scheme is entirely separate from the right to 12 months of unpaid parental leave under the National Employment Standards (NES) in the Fair Work Act 2009 (Cth). These are two distinct entitlements, and an employee can access both. Employers are not required to fund the Government’s Paid Parental Leave — Services Australia administers and pays this either directly or through the employer — but employers must still provide the NES unpaid leave entitlement regardless of any award, enterprise agreement or employment contract. Understanding the distinction is essential for payroll administration, leave management and how employers communicate this to their team.

The Common Questions — And What They Mean for You

1. “Can my employer put me in a different role when I return?”

When this question comes up, it is usually because the employee is worried. Some may have been told their old role “has changed.” Some have come back to their manager asking them to sign a new contract, and some have come into the office to simply find their desk has been moved into a new section.

The answer is clear: employees returning from unpaid parental leave have a legal right to return to the position they held before they went on leave. This is the Return to Work Guarantee under section 84 of the Fair Work Act 2009 (Cth).

Case Law: Thomson v Orica Australia Pty Ltd [2002] FCA 939

If the position no longer exists, then the employee has a right to another available position that they are qualified to perform, and that is a reasonable position close to the status and pay of the pre-parental leave position.

If employers are planning on restructuring the company, they should make sure that they check how the changes will affect any employees on parental leave. Changes can be made to employees’ positions, including making them redundant, while they are on parental leave, but it is important that employers meet their obligations by appropriately consulting and seeking professional advice before making decisions.

Case Law: Stien v Hire a Hubby Pakenham [2025] FWC 510

2. “My employer wants me to sign a new employment contract because I am only coming back three days a week.”

This is a question I hear most frequently, both from employees and from employers unsure how to handle it.

Requiring a returning employee to sign a new contract of employment because they are returning on reduced hours is bad practice — and potentially unlawful.

This links to the previous section, where the employee has a right to return to the position they held previous to parental leave. This includes the hours that they held. Where an employee has asked to return to work on reduced hours, it is important to distinguish whether they are requesting a flexible work arrangement or not. If you and your employee agree to a temporary change in hours as they return to the workforce, this can be done through a graduated return-to-work plan as a flexible work arrangement.

Where an employer is requiring their employee to sign a new contract of employment for reduced hours, they are effectively terminating their employment.

The legal framework here is important. Under section 65 of the Fair Work Act 2009 (Cth), an employee who is a parent of a child of school age or younger and has completed at least 12 months of continuous service has the right to request flexible working arrangements. You, as the employer, must genuinely consider that request and can only refuse on reasonable business grounds — which must be provided to the employee in writing.

Agreeing to a flexible arrangement, such as the one in the example above, does not reduce the employee’s right to their original pre-parental leave position and, as such, hours of work. Furthermore, the employee’s continuity of service, entitlements and contract protections remain intact from their original commencement date.

Case Law: Hickie v Hunt & Hunt [1998] HREOCA 8

3. “My role was restructured while I was away and now I have been told it no longer exists.”

An employee has returned from their parental leave, or possibly they were consulted during their parental leave, and told that their position no longer existed within the company and they are being made redundant. This is an area where I see employers come unstuck regularly, and it is generally because they did not seek professional advice before acting and therefore did not follow the appropriate steps.

A redundancy affecting an employee on parental leave must be a genuine redundancy as defined under section 389 of the Fair Work Act. This is a three-part test that employers need to meet:

1. The position is no longer required to be performed by anyone.
2. You have complied with applicable consultation obligations.
3. You have genuinely considered whether the employee can be redeployed elsewhere in the business and confirmed that they cannot be redeployed elsewhere.

One of the reasons this particular scenario can be challenging is because taking parental leave is a workplace right that is heavily protected. Adverse action provisions make it unlawful to take action against an employee — including making them redundant — because they have exercised a workplace right, such as taking parental leave. Importantly, once an employee alleges adverse action, the burden of proof shifts to the employer to demonstrate that the exercise of that right was not a reason for the decision.

Case Law: Heraud v Roy Morgan Research Ltd [2016] FCCA 185

4. “Do I have to attend Keeping in Touch days?”

No — but my advice is that closer to an employee’s return date, I would suggest that they do so, even if they just say hello to their colleagues and have a coffee.

An employee on unpaid parental leave may work up to 10 Keeping in Touch days during their leave period without those days affecting their leave entitlement. These days must be agreed to by both the employee and employer. The days are useful for maintaining connection with your team. You could use them to attend a team meeting, a training session or stay across a significant organisational change.

5. What support should you be offering returning employees?

Beyond strict legal compliance, there is a compelling business case for investing in a thoughtful return-to-work experience. Returning to work can be very overwhelming for some parents, and it is important to support them with a smooth transition. The cost of losing a skilled, experienced employee because the return to work has not been supportive consistently outweighs the investment required to retain them. The mothers I speak with are not asking for extraordinary concessions; they are asking to be treated with respect and support through a significant life change.

Here is what best-practice employers are doing, and what your returning employees may be hoping you will offer:

• A Graduated Return to Work: Consider allowing returning employees to phase back — beginning with reduced hours over a defined period before transitioning to their agreed arrangement. It helps if this is documented, as this protects both parties and signals that the organisation takes the process seriously.
• Breastfeeding and Expressing Facilities: Under the Sex Discrimination Act 1984 (Cth), breastfeeding is a protected attribute. It is unlawful to treat an employee less favourably because they are breastfeeding. Best-practice employers provide a private, clean room—not a bathroom—for expressing, access to appropriate refrigeration and reasonable break flexibility. Failing to accommodate this may also give rise to work health and safety obligations under relevant state or territory legislation.
• Access to Employee Assistance Programs (EAPs): The return to work after parental leave is emotionally complex. If your organisation has an EAP, proactively remind returning employees that it is available and confidential. If you do not have one, it is worth considering.

The Broader Picture

The discussions I have had with employees preparing to return from parental leave are not driven by a desire to challenge their employers. Rather, they are unsure about their workplace rights and are worried about discussing them with their employers.

Many conversations are driven by a desire to understand how parental leave, flexible work arrangements and work expectations apply to their return. However, uncertainty often arises when there is a lack of transparent communication or understanding about the rights and obligations that apply to both employees and employers.

When return-to-work processes are not managed effectively — whether due to a misunderstanding of the law, poor internal processes or simply not seeking the right advice — organisations do not just risk legal liability. They risk losing talented people who would otherwise stay.

Australia’s employment law provides a range of protections and entitlements for employees returning from parental leave, including the return-to-work guarantee, rights to request flexible working arrangements, consultation requirements and general protections provisions. Employers who understand and proactively implement these obligations are better positioned to minimise risk, support employees, reduce turnover and maintain positive workplace relationships.

If you are unsure whether your current processes are compliant, or if you are about to manage a return-to-work situation that feels complicated, reach out to us at iHR Australia to receive advice before acting. It is always easier — and cheaper — to get it right the first time.