Clear patterns but also much diversity

The research showed some clear patterns. In particular, it is almost solely mothers rather than fathers who take PPL and extended unpaid leave. However, there is also much diversity of experience and attitudes of mothers, fathers and employers. In part, this reflects the considerable variety of family types, educational backgrounds, employment arrangements and the wide range of employers, both in terms of size and area of business, working within the New Zealand economy. It also reflects the wide range of attitudes towards work and family life and, outside the control of parents, the differing experiences of childbirth (or adoption), as well as variations in maternal and child health.

Strong support for parental leave

Overall, the surveys show there is widespread support amongst mothers, fathers and employers for parental leave. It is almost universally recognised that its job protection and payment, is important for parents, primarily mothers, to take time out of paid work around the birth or adoption of a child. There is much support for the idea that such time out assists in protecting the health of mothers and their babies, that bonding with a new child is important, and that for many mothers, establishing breastfeeding is important.

Eligibility for parental leave

Out of all mothers giving birth to or adopting a baby, a quarter was not in paid work in the eligibility period before having the child. Most of these mothers were already at home full-time looking after an older child. The survey did not provide information on how long these mothers stayed out of the labour force but it is likely some will have returned to paid work within the first two years of the child's life. These mothers are not eligible for payment for time out of the workforce and clearly do not have a job that can be protected.^[23]

As the eligibility criteria for PPL stood at the time of the survey, that is being employed more than ten hours per week for six or more months, but with the self-employed not at the time of the survey being eligible, this allowed about eight out of ten employed mothers to qualify for PPL. Two-thirds of these mothers were fully eligible, that is eligible for the period of paid leave and the full 52 weeks of extended unpaid leave. Reflecting the eligibility criteria for leave, the data indicates that better educated, higher earning women in the core labour market, and who tend to work in the main urban areas, are those most likely to be fully eligible for parental leave. More disadvantaged mothers in terms of household incomes and number of children to support are over represented amongst those missing out on eligibility for parental leave and its associated payment. In addition, reinforcing this disadvantage, mothers not eligible for government PPL were also less likely to take employer provided paid leave. A similar pattern has been demonstrated in Canada, with research suggesting that eligibility criteria for PPL can reinforce rather than reduce disadvantage in the labour market (Evans, 2006). Since the survey was undertaken, self-employed mothers who meet the working hours and work attachment criteria have also become eligible for PPL. The survey indicates that around 80 percent of self-employed mothers are now likely to be eligible.

Outside of those who were ineligible through self-employment, workers who were likely to be ineligible were casual workers. Contract workers were also more likely to be ineligible. Some of these workers may have had a long attachment to the labour force, but insufficient attachment within the eligibility period. Some of these contract workers may have in fact filled jobs created by those taking parental leave but who return before six months leave. It is not the weekly hours that are the main impediment to meeting the eligibility criteria but the length of time employed before the birth or adoption.

While the samples were too small to allow a robust analysis of the relationship of ethnicity to attitudes and outcomes, a range of labour market research shows that Maori and Pacific mothers are over-represented in the types of jobs and employment arrangements that tend to exclude mothers from being eligible for parental leave.

The qualitative research indicated that working mothers not eligible are often unhappy about missing out on PPL. Some employers also feel there are mothers who unfairly miss out on being eligible for PPL. Nearly all of those who were ineligible for PPL said that the financial contribution had they been eligible would have made a significant contribution in covering living costs. In addition, nearly 40 percent would have taken more leave (both paid and unpaid) had they been eligible. It is possible that some of those missing out on being eligible for PPL may have had a long-term attachment to the labour force but had not demonstrated recent workplace attachment as required by the eligibility criteria. Equally, some mothers who were eligible for PPL may not have had a long-term attachment. For example, some mothers who are eligible for PPL may have only ever worked for the six months in the period before having a baby.

With the exception of fathers who adopt a child, fathers or other spouses/partners are not directly eligible for paid leave. Mothers can transfer leave to their spouse/partner, however, if this person also meets the work eligibility criteria. While not part of this study, given the employment patterns of men, most new fathers are likely to meet the work test.

Take up of paid parental leave

Of those mothers who were eligible for PPL, eight in ten of these women take up a period of leave. Overall, this is two-thirds of all women in paid work. Of the remaining third of all women in paid work and who did not take PPL, two-thirds took no leave at all (equally divided between those who qualify and do not qualify for PPL). One-third took other types of leave. PPL is typically taken at the end of all other available paid leave. Uptake of leave is limited by a number of factors including: awareness of leave policies; a conscious choice to exit the workforce and ethical obligation to employer; perceived flexibility of paid work to fit around family; type of role in workplace.

Women who take PPL (compared with those who do not):

• Are more likely to agree that they have the choice to return to work under the same conditions of employment.
• Are more likely to return to the same employer.
• Spend more time at home before returning to paid work.
• Are more likely to take leave from paid work before and after the birth.
• Perceive the key benefits of PPL as providing time to aid recovery, establish breastfeeding and to bond with the baby. PPL sanctions time away from paid work to look after the baby.

Does paid parental leave improve income stability for families?

The data indicates that for those parents able to access PPL, the payment does improve income stability for many. Over half of those mothers who took PPL agreed that the ending of the payment had a significant impact on decisions when to return to employment. Over 80 percent of those who took PPL said that it lessened money worries, made the transition from two incomes to one easier, and contributed to financial security. In addition, of those who took PPL, but did not take the full 52 weeks of unpaid leave, the majority said that it was financial pressures that prompted their return to work.

Yet, the qualitative research suggests that the actual dollar amount for mothers who benefit from PPL is a token covering day to day costs associated with having a baby. The qualitative research indicates, however, that for mothers excluded from PPL by their patterns of work, the amount of money provided by PPL would have had a significant financial impact, allowing them to have time to bond with the baby and delay their early return to paid work. For some mothers, the payment attached to the leave simply gives the leave value.

Does parental leave support gender equity in the labour market?

One of the aims of parental leave is gender equity within the labour market. Increased female labour force retention and the opportunity to return to paid work without disadvantage to position or pay is one of the important indicators of this. Ideally, longitudinal data would be needed to determine the effect of PPL and overall job protection on long-term attachment to the labour market for women. Most mothers in the survey, 75 percent, were in paid work before having a child. It is likely that an even higher proportion of mothers having a first child would have had some labour attachment before having that child. No data was available on how many of the mothers who were not in paid work before having their child had actually returned to work when their child was 14- 17 months (i.e. beyond the time the survey respondents were interviewed), but it is likely some would have. Overall, 76 percent, of the working mothers had returned to paid work in this time period. While it was higher, at 80 percent, for mothers who had taken PPL, the majority of women return to work, but not necessarily to the same job, regardless of the type of leave taken. This suggests that PPL is not a major factor in determining return. Other factors, such as the need to maintain family income or to maintain careers, are likely to be the stronger drivers for women's long term labour market attachment. But the right to return to the same employer is likely to reduce job search costs and uncertainly about family income. The patterns of return may in part reflect that, in a time of labour shortages, employers at the time the survey was carried out had a very strong incentive to attract back employees.

Comparing return to work data for employers and mothers is not straightforward due to differing questions and perspectives. A significant number of employers said that mothers did not return at all from either the period of PPL or from the full 52 weeks of unpaid leave. At first this seems at odds with the fact that the majority of women return to paid work within 14-17 months. But the data indicates that about a third of women who return from PPL did not go back to the same job. Therefore, when this is combined with the number of non-returnees, this matches the perception of employers that many mothers do not return to their original workplace.

Potentially PPL, and wider job protection, reduces employee turnover for employers as it allows them to keep an attachment with parents. The requirement to take leave while receiving PPL, however, means that some parents say they will return to work even if they do not plan to in order to receive the payment. There is no financial incentive within the PPL legislation for parents to return to paid work. Instead the main incentives are factors such as need to maintain family income once PPL has finished or to maintain a career. Both the employer and employee data indicates that a small but significant proportion of mothers say they will return to their employer but do not. While some parents may have no intention to return, others clearly change their minds about returning, with the qualitative research indicating a range of reasons for this change. A change of plans is more common for those working for large employers. Parents can also change the time of their return. Around half of mothers who take PPL return to paid work when planned, one-third return earlier, mainly for financial reasons, and one in ten returns later, mainly wanting to spend more time with baby. For some parents the amount of leave mothers want to take around the birth of the baby only becomes clear with the experience of the impact of their new baby on their lives. Thus for these parents the anticipated return to work date is an estimate.

Most mothers who took PPL and who returned to employment, came back with the same terms and conditions, a requirement of the legislation. Although a little lower, the majority of women who did not take PPL also returned with the same terms and conditions. Yet, most mothers do change their working arrangements. A change in working hours is particularly common, with two-thirds working part-time on return to work compared to one-third before the birth. Of those who decreased their hours, two-thirds planned for it to be a permanent change. If there had been changes in terms and conditions, it seemed that this had generally been at the request of the employee. Mothers noted that in a twelve month time period a workplace can undergo considerable change and re-organisation and for those returning to work after twelve months it can feel similar to beginning a new job.

Does parental leave support gender equity in the home?

Does parental leave promote gender equity within families with fathers sharing leave and caring responsibilities? Based on biology, the design of PPL assumes different roles for women and men with birth mothers being given primary eligibility for payment. While this does reflect the attitudes and behaviours of most, but not all, parents, it potentially constrains parental choice as to who is primary caregiver. In particular, where mothers are not eligible but, through their work patterns, fathers potentially are, the fathers cannot access any PPL. While mothers can potentially transfer leave most do not decide to. In fact, of the small number of mothers who return early from PPL, most forfeit the remainder of their payment rather than transferring it to a spouse/partner. The survey of fathers, however, indicated that if PPL existed specifically for fathers, half would take it up.

Even if more choice was given to parents as to who took the leave, or there was a specifi c period of paid leave for fathers, while this would probably be of benefit to some individual families, overall patterns of leave taking would probably not change much. The data from interviews with mothers, father and employers indicates that PPL as it currently stands is generally perceived to be much more important for mothers than fathers. While social norms are likely to be playing their part in determining roles, biological factors are seen by mothers, fathers and employers as critical. While many of the mothers and fathers may have strived for equality in both paid and unpaid work before having a child, pregnancy and the birth of a child often reinforces traditional gender roles. For both biological and social reasons, most mothers see themselves as the main nurturers while the majority of fathers assume the provider role. Both the quantitative and qualitative data show that following on from the birth, the majority of fathers feel increased pressure as the main income earner and have greater concern about fi nancial security. In terms of biology, recovery from childbirth is seen as being supported by PPL as is breastfeeding for many women. Given the length of PPL (14 weeks), these biological factors could be slightly less important if PPL was extended to six months or a year.

While employers are supportive of changes fathers make to work patterns around the birth or adoption of a child, they are less supportive of long-term changes by fathers to their paid work. Once parents return to paid work, just over half of mothers find it difficult to balance home and work commitments. Forty percent of fathers, however, also face difficulties.

Does parental leave support health outcomes for mother and child?

There was some mixed evidence as to whether the parental leave legislation supports optimal health outcomes for the mother and child. Clearly, health is an important consideration for parents when considering leave policies and leave decisions. Nearly all mothers who took some sort of leave noted the importance of the health of their baby when considering the factors influencing the length and type of leave taken. Just under 90 percent note the importance of their own health in the decisions. Nearly all also thought establishing baby's feeding/ sleeping patterns was important. In addition, 84 percent of mothers talked about the importance of establishing breastfeeding., Given that the Ministry of Health recommends at least six months exclusive breastfeeding, however, it was notable that 14 percent of mothers rated initiation of breastfeeding as being unimportant.

Almost all fathers also thought mother and child health factors were very important. When asked what would prevent fathers taking up PPL for themselves most fathers thought it was more important for the mother to take the leave to establish breastfeeding and to have time for recovery. In addition, examples can be found of fathers changing their own leave patterns to support their partner when there were unexpected health problems. When fathers were asked if they would prefer leave at the same time as their partners, most said they would. Again, this suggests that many see themselves in a support role.

Almost all employers also agreed that PPL is important in giving mothers time to focus on the health of themselves and their baby.

When mothers who actually took PPL were asked about their attitudes towards parental leave, nearly a fifth did not think that the leave gives them enough time to establish breastfeeding and a third said it did not give enough time to recover from having a baby. While research establishing the optimal length of time required for recovery after birth suggests that the current 14 weeks of PPL may be suitable for most mothers, research on the period of time out of the workplace needed to support longer periods of breastfeeding suggests the need for at least six-month period of postnatal leave so that mothers can exclusively breastfeed their infants for this period (Galtry and Callister 2005). In terms of health promotion, however, PPL cannot be considered in isolation. The literature also suggests that workplace measures are required to enable those mothers who wish, or are economically compelled, to return to work immediately following childbirth, perhaps with the father caring for the child, to better integrate their work and family commitments. These include measures for 'phasing back' through part-time work as well as provisions for breastfeeding breaks and facilities. In relation to space for breastfeeding, the survey indicated that over 60 percent of employers said they offered such facilities, yet under a fifth of mothers returning from leave reported they were entitled to such space. The reasons for this mismatch are not clear.

Ideal length of paid parental leave

Parents, and many employers, say spending time with babies is important and, as already discussed, optimal breastfeeding practice is supported by having access to a period of at least six months leave for biological mothers. The data indicates that there is a mismatch between the amount of paid leave currently available and what parents actually want. While there is some variation, most mothers would ideally like to take just over one year out of paid work to be with their babies. Yet, the average time at which mothers return to work is when their babies are six months old. Fathers typically take two weeks of annual leave. For most fathers, however, the ideal is four weeks concurrent leave with mothers, to assist with the mother's recovery. The majority of fathers have no plans or interest in becoming the main caregiver. Of those who do, most intend to care for the child from eighteen months of age or older. The qualitative research indicated that fathers who became primary caregivers found they were challenging conventional roles.

If, as the biomedical literature suggests, an initial six-month period of leave following childbirth is warranted primarily on maternal and child health grounds, then leave comes to be seen as unavoidably female-specific. In heterosexual, two-parent families, if greater equality both in the home and the workplace is to be achieved parental leave needs to be shared equally by both parents, thereby avoiding the entrenchment of traditional roles and responsibilities. This then necessitates parents taking leave concurrently, or, alternatively, up to a year of leave, so that they can then take it consecutively. Leave longer than six months would ensure that fathers have the opportunity to both spend time with their child and balance the breastfeeding mother's potential time input during the early months, if indeed she takes leave for this purpose.

Employer views and experiences

As noted, most employers agree that that PPL is important for parents, primarily mothers, to take time out of paid work around the birth or adoption of a child. In addition, the majority agree PPL helps them retain experienced staff with this especially true for small and medium enterprises.

The majority of employers, however, have very little experience of women taking PPL. This primarily reflects that many employers have a small number of employees and, connected with this, many have not been in business for all that long. While generally employers are supportive of the aims of PPL, managing leave, not just PPL, is an issue for employers, particularly for small employers. Employing someone to cover the position of an employee on parental leave is one of the most difficult aspects to manage for employers. Small and medium enterprises find this more difficult, and they are also more likely to agree that they prefer to re-allocate work across existing staff rather than try to hire someone to temporarily fill the role.

For most employers, if mothers extend their leave beyond six months, while employers are legally required to hold open the position, finding a replacement can be difficult. Exceptions to this are government agencies and larger businesses where systems and processes are in place making it easier to fulfil their legal obligations.

Generally, only large employers have formalised policies and systems in place to manage parental leave, and are more likely to have greater knowledge of their legal obligations. Small employers are more likely to consider parental leave for mothers on a case-by-case basis.

Managing parental leave does not stop when parents' return to paid work. Employees and employers commonly negotiate on-going flexibility, including flexible working hours. Small and medium enterprises appear to be more flexible. They are more likely to strongly agree that they work around the needs of families where possible and re-evaluate the needs of mothers on a regular basis, when compared with large organisations. Employers generally consider that they are very family friendly, with most saying that they offer flexibility.

Finally, employers are more supportive of changes to working patterns for fathers around the time of the birth, rather than on a long-term basis. This also serves to reinforce gender roles for women and men in terms of work and parenting.

Sources of information about parental leave

Of direct relevance to the Department of Labour, while employers use its information when developing strategies for managing leave and generally find this information useful, the Department is not a key source of information for employees. Instead, friends, families, the media and other employers are key sources of information. Sometimes these sources may not provide accurate information or reach key audiences. For example, many fathers were not aware of the eligibility criteria for PPL, including that they could have part or all of it transferred to them. Mothers who would gain most from PPL financially, often lack the confidence and education to find out about it.

Knowledge of the details surrounding PPL appears to be low and there is some confusion around eligibility criteria amongst most mothers and some employers. Despite their obligations under the Act, many employers reinforce the attitude that it is up to mothers to find out about it and complete the application. Friends and family are the most trusted source of information about PPL but the internet and 0800 numbers provide the detail. Mothers working for employers with a human resource capability are more likely to be given information and feel more supported.