Pauline Hanson says small businesses will \u201cfold\u201d under the cost of providing paid parental leave, as Labor suggested the One Nation leader didn\u2019t understand how the policy worked.<\/p>\n
It is not compulsory for employers to pay parental leave entitlements in Australia, though most businesses do provide it and employees are entitled to 12 months of unpaid leave.<\/p>\n
Hanson was criticised last week for suggesting parents taking time off work to care for newborn babies should not have their wages paid by employers, telling the National Press Club<\/a> parental leave was the reason for the gender pay gap.<\/p>\n \u201cIf women take time off and they are not paid their wages because they\u2019re not working, fair enough,\u201d Hanson said last week. \u201cWhy should business pay? But they\u2019re not at work. That\u2019s the difference. That\u2019s why the pay gap is there.\u201d<\/p>\n Sign up for the Breaking News Australia email<\/a><\/p>\n She attempted to clarify the comments on Tuesday, telling the Seven Network that it was \u201cOK\u201d for the government to pay parental leave but the cost was too much for small business operators.<\/p>\n \u201cIt\u2019s up to companies if they want to have it in their policy to give it to their workers,\u201d she said.<\/p>\n \u201cSo there\u2019s no way, shape, or form that I am actually saying to get rid of it. I think it\u2019s been very beneficial to women to get back into the workforce. So that was totally taken completely out of context.\u201d<\/p>\n \u201cThere are businesses that cannot afford it. It\u2019s OK for government, taxpayers pay for it. You put another pressure on the small businesses, pay for maternity leave, they\u2019ll actually fold.\u201d<\/p>\n But under the National Employment Standards, it is not compulsory for employers to pay staff parental leave, but employees are entitled to 12 months of unpaid leave from their job.<\/p>\n Federal government data shows nearly 70% of businesses pay additional parental leave entitlements to their workers.<\/p>\n The taxpayer-funded paid parental leave scheme coming into effect from 1 July will offer parents 26 weeks at the national minimum wage, up from 24 weeks under the current rules.<\/p>\n The leader of the Nationals, Matt Canavan, called on Hanson to explain the apparent change in her party\u2019s position since last week\u2019s speech<\/a>.<\/p>\n