What is a parental leave policy?
A parental leave policy is an employee benefit that employers offer to new parents that allows them paid or unpaid time off to care for their children. Parental leave policies give parents time to bond with their newborn and help them adjust to their new lifestyle, lack of sleep and hectic schedules.
Employers often offer parental leave to both mothers and fathers, although policies may sometimes be split up into separate maternity leave and paternity leave policies. The amount of paid leave generally lasts anywhere from 2 weeks to 4 months or more, depending on the company and state laws.
The only nationwide policy that addresses parental leave is the Family and Medical Leave Act of 1993 (FMLA), which guarantees eligible employees (such as new parents) up to 12 weeks of unpaid, protected leave. FMLA applies to businesses with more than 50 employees and employees who have worked at a company for at least 12 months.
Who qualifies for parental leave policies?
Paid parental leave policies usually cover mothers who recently gave birth and their partners. Some companies offer adoption leave for parents who have recently adopted a child and need time for their new family to adapt, regardless of the child’s age. These policies vary from company to company, depending on what the company allows.
Additionally, primary caregivers (i.e., the person who has primary responsibility for the care of a child following birth) often receive more time off than secondary caregivers. Depending on the circumstances, the mom or dad may be considered the primary caregiver and be eligible for more extensive leave.
Other parental leave policies may provide additional leave for parents who need to care for older children. For example, if a child is sick or has a doctor’s appointment, company policy may allow them to use their parental leave to care for the child. As long as you don’t violate any state or federal labor or leave laws, you can decide how extensive you want your parental leave policy to be.
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Parental leave policy best practices
Creating your parental leave policy requires you to balance your company’s interests and your employees’ needs. Being stingy with leave policies can alienate parents and push them toward other employment with companies that offer more family-friendly leave policies. Follow the best practices below to help you determine the best parental leave policy for your company.
Research how other companies worldwide handle parental leave
If your company operates in different countries or hires international employees, be aware of the parental leave offered by companies in those countries. Try to offer a parental leave policy similar to the ones in the country where your employees are located. You might also have to comply with leave requirements in other countries if you operate there.
Consider the needs of both parents
Moms are often the focus of parental leave since they’re traditionally the primary caregiver, but that’s changing rapidly. Consider both parents and try to provide them similar benefits. Since both moms and dads typically participate in the care of their children (and all the late nights and early mornings that come with it), consider offering parental leave to both parents.
Clearly explain parental leave policies to employees and be ready for questions
After writing or updating your parental leave policy, hold a meeting with your employees to discuss the rules of this policy. Detail each section and be ready for questions from employees. Be patient when answering questions and listening to employee concerns.
Feedback from the employees can help you refine your policy and make it more employee-friendly. You might not be able to give your employees everything they want, but compromising on the benefit can improve employee satisfaction.
How to create effective parental leave policies
You can use a parental leave policy sample as a guide, but it’s best to customize it to fit your company and your employees. Follow the steps below to learn how to create an effective parental leave policy:
1. Ask employees what they need from parental leave
Gather ideas and opinions from your employees regarding what they need from parental leave. Create anonymous surveys for them to share their opinions, or meet with them individually to get an idea of what would benefit them the most. This can help you determine which benefits are crucial to include and which benefits your employees may not want or need.
2. Evaluate your budget
Before writing your parental leave policy, review your budget to learn what policies your company can afford and support. List your company’s goals and needs for the parental leave policies and try to build a plan around this. Review other parental leave plans used by different companies and find some to base your policy around. Tweak these policies to best fit your budget, goals and employee needs.
3. Review your state’s rules
When creating a parental leave policy, learn your state’s laws and regulations to ensure you’re in compliance. You can start your policy by listing the benefits required by your state and build the benefits and remaining sections of your policy from there if you want to offer a more generous plan. This gives you a place to start writing your policy and ensures you’re meeting all the legal requirements.
For example, California requires employers to offer paid family leave (PFL) to employees who request it and are eligible. This includes paying 60% to 70% of an employee’s wages for up to 8 weeks within a 12-month time period. Unlike the FMLA, this type of paid leave doesn’t offer job protection.
4. Present the success of other parental leave policies to stakeholders
Stakeholders may feel hesitant to invest in certain parental policies, especially if it’s a larger investment. Research other successful policies and find data proving the benefit and ROI it provided employees and the company.
For example, you could explain how a company provided parental leave, which led employees to stay at the company long-term, reducing the employee turnover rate by 20%. Showing how a paid parental leave policy may help save money and the benefits it brings employees may be an effective way to convince stakeholders to invest in your policy.
5. Write your policy and have it reviewed
Once you’ve gathered employee survey information, budget details and competitive research, build your company’s parental leave policy by including any employee needs while staying within your budget. After you’ve drafted the parental leave policy, show it to different supervisors or leadership team members to get their thoughts and opinions.
Getting feedback can help you better understand if your policy will be successful and beneficial to your employees. If anyone has notes or updates, apply these changes before officially distributing your policy to employees.
Parental leave policy FAQs
How much notice should an employee give before taking parental leave?
When coming up with the rules and regulations of your parental leave policy, include a section about employees providing you notice before requesting parental leave. This allows your employees to alert you of their upcoming extended absence to give you enough time to adjust and develop a transition plan. Typically, employees should give employers notice approximately 10 weeks before their parental leave begins, but this varies from company to company. Giving that much notice may not be possible in some circumstances, such as an unexpected adoption placement or premature birth. Offering leniency in these circumstances makes your policy better for your employees.
Is paid parental leave a requirement?
While there are no federal laws that require employers to offer paid parental leave, some states require a certain amount of paid leave to be granted to new parents. Everywhere else, the FMLA’s 12 weeks of unpaid parental leave is required for eligible employees. Even if you’re not required to offer paid parental leave in your state, it can still be a smart move to offer it. Having a paid parental leave policy can lead to improved maternal health, better mental health for both mothers and fathers, reduced health insurance costs and happier, more productive and more engaged employees.
Does parental leave have to be continuous?
Under FMLA rules, 12 weeks of unpaid parental leave must end within 12 months after birth or adoption, but it can be taken intermittently within this 12-month period if an employer approves it. If you offer paid parental leave, you can choose whether it has to be taken all at once or if it can be taken consecutively, as long as that decision complies with state requirements. Note it in your parental leave policy. Check with your state’s laws on paid parental leave before making your decision.
