4.2.2.20 When Can Employers Elect to Provide PLP?

Introduction

An employer may elect to provide PLP for all employees, or a class of employees, or a particular employee or employees.

Where an election applies in relation to an employee at the time their claim is lodged, Centrelink can make an employer determination for the person and their employer even though the employee has not been employed by the employer for the required 12 month period or instalments of PLP would not be payable by the employer for at least 8 weeks. The other requirements would still need to be met, including:

  • a payability determination or an initial eligibility determination for the person is in force, and
  • the person is likely to be an Australian-based employee of the employer for the person's PPL period where a payability determination has been made, or the period of days for which instalments are likely to be payable in any other case, and
  • the employer has an ABN.

Employers are able to elect to provide payments by:

  • pre-registering their details online with Centrelink (i.e. registering details for use in connection with a claim made by any of its employees, regardless of whether any employee has claimed at that time) and indicating a group they wish to elect to provide PLP for, or
  • contacting Centrelink to indicate a group of employees that they wish to provide PLP for.

Which groups of employees can an employer elect to provide PLP to?

An employer can elect to provide PLP for any one of the following groups:

  • mandatory employees only,
  • all employees - all full-time, part-time, permanent and casual employees, regardless of how long they have been working for the employer,
  • all employees with at least 6 months tenure - all employees who have been working for the employer for at least 6 months, regardless of whether they are full-time, part-time, permanent or casual,
  • all permanent employees - all employees who are employed on a permanent basis, regardless of how long they have been working for the employer, or
  • all permanent employees with at least 6 months tenure - all employees who are employed on a permanent basis who have been working for the employer for at least 6 months.

If an employer advises Centrelink that they wish to elect to provide PLP for a group of employees, Centrelink must obtain the consent of the individual claimant before making an employer determination. The individual may indicate their consent on the claim form.

Employer may withdraw election

The employer may withdraw an election by written notice given to Centrelink in a form approved by Centrelink. However, withdrawal of an election does not affect an employer determination that has already been made.

Centrelink may cancel an election

Centrelink may cancel an employer's election if satisfied that the employer is no longer a fit and proper person (having regard to the matters set out in 6.1.1). However, a cancellation does not affect an employer determination that has already been made.

An employer determination can be revoked under subsection 108(2) on the basis that the employer is not a fit and proper person.

If Centrelink cancels an election, Centrelink must advise the employer of the cancellation.

When an election is in force

An election remains in force from the time it is received by Centrelink until either the PLP period (1.1.P.200) for each relevant employee ends, or the employer withdraws the election or the election is cancelled.

Which employer provides PLP where the employee has more than one employer?

If a claimant has more than one employer, the employer who provides PLP is decided as follows:

  • If the claimant has worked for 2 or more employers in the previous 12 months, but was an employee of only one of those employers immediately prior to the child's DOB, that employer will provide the pay.
  • If the claimant has worked for 2 or more employers in the previous 12 months, and was employed by more than one employer immediately prior to the child's DOB, the claimant must nominate which employer will provide the pay.

Act reference: PPLAct section 101 Making employer determinations, Part 3-5 Division 4 Election by employer to pay instalments

Policy reference: PPL Guide 6.1 Employer Determinations for PLP

Last reviewed: 3 July 2017