Parental leave when business changes hands

Parental leave entitlements when a business changes ownership

When a business changes owners, also known as a ‘transfer of business’, there might be a transfer of employment. This means that an employee keeps working at the business, but their employment transfers to the new business owner.

In this circumstance, employees entitled to unpaid parental leave with the old employer are still entitled to it with the new employer. This is because the new employer is required to recognise the employee’s service with the old employer for parental leave entitlements.

This entitlement is recognised when the employee:

provides the correct notice and evidence of intent to take parental leave under the old employer, or

has already started unpaid parental leave with the old employer.