EY in NZ, OZ to claw back parental leave pay from staff who quit after returning
Tuesday, 19 May 2026
Kiwi employees of professional services firm EY will be in the same boat as their Aussie colleagues from July 1, when its new and controversial rules around parental leave come into force.
EY Australia has told its Australsian workforce on Tuesday, as reported in the AFR, it would force employees to pay back two months of their six-month parental leave if they resign within a year of that paid benefit.
Repayments can be made in one of three ways: “offsetting the repayment amount against your final pay”, a “lump sum repayment” or “a repayment plan”.
A statement from EY to The Post this afternoon confirms the same rules will apply this side of the Tasman.
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There are roughly 1200 people who work at EY in this country, and 8000 in Australia. About 51% of the combined Oceania workforce are female, although this is not broken down by age for public consumption.
As noted in Australian media, the rule makes EY an outlier in terms of professional services firms, which all offer the standard six months of leave and do not penalise those women opting to resign shortly after returning.
A source within the company denied the change was being made to save money and simply reflected the investment made by the company in retaining talent, in a competitive environment for hiring. The source said competition between the professional firms for talent was fierce and a lot went into retaining the right people.
Official comment for the change came from EY’s Australian office, a spokesperson from which told The Post the company “regularly evaluate(s) and update(s) our employee benefits to ensure they reflect the needs of our people and our business.
“We have made an amendment to our paid family leave policy, which includes conditions around eligibility, which is standard across businesses in Australia and New Zealand.'
“We continue to offer 26 weeks of paid family leave for primary carers, which remains highly competitive and places EY among the leading organisations in the market.”
“Where organisations make significant investments in their people, including extended paid family leave well above statutory minimums as well as development and learning opportunities, it’s not unusual to include return-to-work expectations. These arrangements reflect the scale of that investment and a shared focus on supporting and retaining talent over the longer term.”
NZ parental leave
In New Zealand, standard parental leave see guardians receive 26 weeks, to be taken the way they like (all by one parent, or shared), and one payment of $788.66 gross (before tax) per week for that 26 week period is paid by the taxpayer. The employer’s only obligation is to hold the job open for the parent taking the leave.
EY’s leave is touted by the company as highly flexible and over and above standard leave provisions. It tops up 26 weeks of government-paid leave to full pay for the period (as does PwC and Deloitte. Accenture and KPMG top up for 18 weeks). EY parental leave can be taken as a continuous block or staggered over 24 months of the child’s birth or placement if an adoptive family. The full 26-week package applies equally to biological births, stillborn births, adoptions, surrogacy, and indigenous or community structures like whāngai or kinship care. It is fully inclusive of LGBTQ+ employees.
EY also makes superannuation and KiwiSaver protection for up to 12 months over the period.
The Global Women New Zealand network has previously said in terms of recruitment and structural benefits, “EY New Zealand holds a strong reputation for attempting to level the corporate playing field.”
On the other hand, the company suffered a hit to its reputation after the 2023 Broderick Review of EY Oceania, which included a close look at New Zealand operations, and a revealed widespread bullying, sexual harassment, and racism, with 40% of staff considering leaving due to toxicity.
The report identified a lack of trust in HR and highlighted that nearly 20% of female employees aged 18-35 experienced sexual harassment, prompting 27 recommendations for structural change.
Correction: The story has been corrected to say that Deloitte and PwC also offer 26 weeks’ worth of full pay - topping up the Government provision - while KPMG and Accenture offer 18 weeks of the same.