Is it fair to give parents more leave?

An Australian clothing business has been getting attention for its employee leave policy, which gives parents an extra two weeks off a year until their child turns 12. But could it happen here?

Dissh said it was giving the leave to help parents with “all the important stuff”, such as school transitions, “meaningful parenting moments and milestones” and illness.

“This is how we modernise work,” it posted on its Linkedin. “This is how we raise the standard.”

Employment law expert Alison Maelzer, of Hesketh Henry, said it might seem at first glance that the Human Rights Act would make similar policies in New Zealand unlawful, because it does not allow discrimination on the grounds of family status.

But she said it allowed for the preferential treatment of someone who had responsibility for the care of children or dependants.

“Any policy giving additional leave would need to be based on that employee having responsibility for the care of children, rather than just being a parent.

“While this may provide a potential legal defence for the employer, a policy of this nature is likely to be controversial, and could cause resentment or division in the workplace. Employers might want to consider how they could a make a policy like this more inclusive, or how they may be able to balance this benefit for those employees who do not have children.”

Alastair Espie, an employment law specialist at Duncan Cotterill, agreed the law made room for it.

“Although treating an employee differently on the basis of a characteristic like family status, which includes whether or not they have children, is ordinarily unlawful, this type of arrangement is a permitted exception to the normal anti-discrimination rules.”

Research from recruitment firm Robert Half showed employees had a strong preference for perks that supported flexibility and lifestyle. Extended parental leave was one of the benefits most used. But only about half of employers offered more than the statutory requirements.

Managing director Megan Alexander said the Dissh policy was probably the best she had ever seen. “I think it is changing but the cost associated with some of these policies, particularly in this economic climate, prevents a lot more being done.

“Having more flexibility and a more family-friendly environment allows more access to a wider talent pool. I constantly see working mums in particular taking huge steps back in their careers, through the early years in particular… it’s a really big balancing act for working parents. As we get more and more of a skill shortage you typically see organisations start to look at these things around how they can access a talent pool that might not be being utilised as effectively as it could be.”

Frog Recruitment managing director Shannon Barlow said employers who offered additional parental leave were recognising that parents faced challenges beyond the traditional parental leave period.

“I think it’s a smart attraction and retention initiative, especially if your workforce is made up of a lot of parents or women. It definitely helps position them as a progressive employer and helps them stand out.

“That said, I can’t see many New Zealand businesses rushing to follow. Most employers are still under pretty significant cost pressure with the cumulative impact of increased sick leave, minimum wage increases, inflation and persistent tough trading conditions. It feels like a benefit that only a small number of organisations could realistically afford right now.

“My biggest question is around fairness. It seems like it’s a perk that’s only available to one group of employees. There are still plenty of important life events, caring responsibilities and milestones that people without kids would love paid time off for too. I’d rather see something like a couple of additional “life leave” or well-being days that everyone can use however they want. Parents would probably use them for parenting anyway, but it feels much more inclusive.”

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