Part-time Work/Parental leave & Redundancy calculation

[able locks]

My wife just returned from maternity leave to work. She'd like to go part time rather than full-time - as we've relocated her commute is gone from a 10min drive to a 45min drive each way and the creche cost for 3 kids takes a large chunk of her salary.

If she does get part-time, is she better off taking the 1-2 days a week from her parental leave allowance, rather than officially going part-time? I believe her gross salary level will be maintained if she takes her days from her parental leave- ie she is foregoing some of her salary in lieu of parental leave rather than taking a pay cut. (Of course, the company may not allow her to take the parental leave in this way).

This could be important as the company she works for is likely to announce redundancies in the next 6-12 months. If it does, then given the commute and the cost of childcare, taking redundancy will at the very least have to be seriously considered so that she can spend time at home (assuming it's voluntary - every chance it'll be compulsory, but the question for now still remains). The redundancy payment in the last round was calculated using an average of the last 3 years salary.

 

[katdar]

Hi Able Locks!
I'm in the same situation regarding parental leave and redunancy. Was wondering if you found out the answer or if anyone else may know?. I have the option to take parental leave and it's likely the company are going to announce redunacies soon.

Thanks
Katedar

 

[Silvergirl]

Did either of you find anything out? AFAIK your redundancy is based on your full salary, not the paid proportion after you take your parental leave. PL is the way to go as part time hours will affect redundancy. You are legally entitled to PL but employer can make one postponement.

 

[Deas]

Parental Leave is not the same as part-time work and cannot be counted as time off for the purpose of redundancy calculation. If you take of a case of someone who took 14 weeks straight Parental Leave 2 years ago, their redundancy payment will not be reduced. This is also true of someone taking days off for Parental Leave currently.

Fom the Parental Leave Act, 1998
14.—(1) An employee shall, while on parental leave, be regarded for all purposes relating to his or her employment (other than his or her right to remuneration or superannuation benefits or any obligation to pay contributions in or in respect of the employment) as still working in the employment and none of his or her other rights relating to the employment shall be affected by the leave.

It is true that you employer can make one postponement of Parental Leave, for a period of no greater than 6 months; however the employer will need to set out why and how this will have an adverse affect on the running of the business. If they cannot do this they have to give the leave. Based on what the OP has outlined, if the company is looking at redundancies, they obviously have not got the work or costs are an issue. Parental Leave reduces employer costs and reduces manpower requirements. I can't see how they could refuse.

Anyhow, based on the above, Parental Leave would be my recommendation.