EY is facing criticism after introducing changes to its paid parental leave policy that will require some employees to repay part of their leave benefits if they resign within a year of returning to work, a move critics say risks undermining years of progress on workplace gender equity in Australia, according to women’s agenda.
The company, employs around 8,000 people across Australia approximately, will continue offering up to 26 weeks of paid parental leave for all new parents. However, staff who take more than 12 weeks of paid leave and then voluntarily resign within 12 months of returning to work will now be “required to repay eight weeks” of that leave.
The policy changes were communicated to employees through an internal memo sent Thursday night by regional deputy chief executive and Oceania people and culture leader, Jenelle McMaster.
The firm has also tightened eligibility requirements, with employees now required to complete at least six months of service before accessing the benefit.
Growing concerns
The changes mark a notable departure from the direction many major firms in Australia have taken in recent years.
Large consulting and professional services firms including Deloitte, KPMG, PwC and Accenture have spent years expanding parental leave offerings as competition for talent intensified and workplace flexibility became a key recruitment tool.
The latest change, however, introduces what critics describe as a financial penalty attached to parental leave, something that could create additional stress for new parents already navigating the difficult transition back into the workforce.
Observers warn the policy may discourage employees from leaving roles that no longer suit them, potentially leading to higher levels of presenteeism, where staff remain in jobs purely to avoid repayment obligations.
The move could also weaken EY’s image as a family-friendly employer, particularly as parental leave policies have increasingly become central to employer branding efforts across corporate Australia.
EY’s defence
EY maintains the changes are designed to create greater consistency and clarity around its parental leave structure.
McMaster told staff the intention was to introduce a “clearer structure for parental leave” and one that provides “greater consistency and predictability, while maintaining support for parents.”
The company also argues the repayment requirement is reasonable considering the investments it makes in developing and training employees.
Broader impact
The policy shift comes at a time when Australia has been seeing gradual progress in workplace gender equity, particularly around parental leave uptake among fathers and primary carers.
Last year, the Workplace Gender Equality Agency reported a 3% increase in the number of men taking primary carer leave, with men accounting for 20% of all primary or universal parental leave taken across corporate Australia.
That progress has largely been driven by a mix of government reforms, cultural change and increasingly generous policies introduced by major employers such as EY and its competitors.
Critics now fear that introducing repayment penalties could slow that momentum and set an uncomfortable precedent for other large employers.
For years, firms like EY have positioned themselves as leaders in family-friendly workplace policies, often competing publicly to offer stronger benefits than rivals.
The concern now is whether cost-control measures tied to parental leave could begin replacing the race to improve support for working parents.