Do you have to pay back parental leave if you don't return to work?

1 in 8 corporate employees have strings attached to their parental leave. What a clawback is, which employers have the strictest ones and how to check your own policy.

Published
Do you have to pay back parental leave if you don't return to work?, slide from The Aussie Corporate Big Conversation

At some employers, yes. In our 2026 Parental Leave Survey, 13% of firms had some form of clawback or minimum return obligation attached to parental leave, rising to 29% in professional services, law and consulting. The government reported zero.

What is a parental leave clawback?

A clawback makes you return to work for a set period after parental leave, or repay your leave pay if you leave. The strictest policies do both. Others hold back part of your leave pay until you come back. It's framed as an incentive. Employees describe it as a ransom.

How common are parental leave clawbacks in Australia?

1 in 8 corporate employees have strings attached to their parental leave.

Sector Firms with a clawback or minimum return obligation
All firms in the survey 13%
Professional services, law and consulting 29%
Government 0%

The gap between the public and private sector is significant. EY made headlines for clawing back parental leave. Our data shows it is nowhere near the worst.

Which employers have the strictest clawbacks?

The strictest companies require you to return for a set period and repay if you don't.

Employer What the policy requires
Wotton Kearney Minimum return period and you must repay paid leave otherwise.
Thomson Geer 20 weeks paid, final 6 only released if you return within 12 months.
Onside Law 38 weeks repayable (100% of parental leave paid).

As reported in our 2026 Parental Leave Survey.

The worst lived experiences

Employer What employees reported
Coles You get 8 of 12 weeks pay. Only once you return do you get the remaining 4.
Credit Corp Group 12 weeks of "full pay" paid as taxable lump-sum bonuses at 3 and 6 months back at work.
Betashares "I was berated and my bonus was impacted for not staying in touch during parental leave."
HelloFresh "Changed policy from full pay to top-up pay while someone was already pregnant. $9,000 out of pocket. No recourse."
Findex "My boss said he made someone redundant because 'we survived without them for a year'."
General Mills "On paper looks great. In reality, role downgrading through loopholes."

Can an employer hold back your parental leave pay?

Several firms hold back your leave pay until you come back. Thomson Geer's is the clearest example in our results. Its policy pays 20 weeks, and the final 6 are only released if you return within 12 months.

Are parental leave clawbacks legal?

Most are structured carefully enough to be. 24% of employees in our survey weren't sure whether an obligation applied to them at all.

How do you find out if your parental leave has a clawback?

Read the policy document. Clawback terms live in policy documents, which means a significant portion of the workforce is making decisions about leave without the full picture.

Before you go on leave, look for a minimum return period, any paid leave that becomes repayable if you resign and any part of your pay that is held back until you return. If the policy doesn't say clearly, ask HR to confirm in writing what applies to you.

Common questions

Do government employers have parental leave clawbacks?

Government employers in our survey reported none. In professional services, law and consulting, 29% of firms had one.

What happens to your parental leave pay if you resign after leave?

It depends on the policy. At the strictest employers in our survey you must repay paid leave, as at Wotton Kearney and Onside Law. At others part of the pay is held back until you return, as at Thomson Geer.

Which employers give the most parental leave?

Our best employers for parental leave results rank them, from 104 weeks at the top. For how leave affects careers, see Does taking parental leave hurt your career?

This article draws on our Big Conversation EY made headlines for clawing back parental leave, which has the original slides.

Source: The Aussie Corporate 2026 Parental Leave Survey, data as at September 2026. Spotted an error? Correct something.