Five Questions to Ask About Parental Leave (That Most People Don’t)

Written by: Sophie Warwick

Two years ago, I had the privilege of welcoming my daughter into the world. Leading up to her arrival, I was full of questions. Who would she be? What would she look like? Would we be blessed with a good sleeper? And, of course, the late-night spirals like, would the cat try to suffocate her?!

We, especially in North America, love to prepare. We read all the books, scour all the blogs, and do everything we can to “hack” parenthood before it begins. The truth is, like anything else, there’s a lot of on-the-job learning involved. Did my husband manage to figure out how to be a dad, despite cherry-picking his way through a 15-book reading list? Yes, he did.

But what continues to surprise me is how often I meet people who haven’t thought about another crucial set of questions, the ones about parental leave.

When I ask, “What’s your parental leave coverage like?”, the most common response I hear is, “Yes, we have parental leave.” My follow-up questions “Are all parents eligible?” “Do you have benefits coverage while you’re away?” “Is there a return of service?” are often met with a lot of I’m not sures.

Many people know the basics, like the length of their leave or how much their pay will be topped up, but they might be missing other important details. So, my first piece of advice when planning your parental leave: ask questions! Make sure you understand your company’s policy holistically so you can plan confidently for your family’s needs.

If you’re family planning, here are some key details to review in your policy:

1. Are all parents and family structures eligible? Many policies are exclusive to birth parents or provide different durations and top-up amounts based on a parent’s relationship to the child. Others may exclude families who welcome children through surrogacy or adoption. Make sure you know how your policy defines eligibility.

At The Thoughtful Co., we recommend policies that are consistent regardless of parental identity or family structure. This approach helps reduce the motherhood penalty (the career and financial disadvantages mothers often face compared to fathers and childless peers) and ensures equitable access for all parents to spend meaningful time with their children.

2. Do you have benefits coverage while on leave?

If you rely on extended health benefits for medications, ongoing treatments, or even new baby-related care, confirm that your coverage continues during your leave. Many people are surprised to learn their benefits pause, leaving them uncovered during a period when new medical needs can arise unexpectedly.

3. Does your vacation accrue while you’re on leave, and will you continue to receive bonus payouts and equity vests?

Vacation accrual is less common outside of the public sector, but it can add significant value if offered. Accrued vacation can help you take additional time off as you transition back to work, extend your leave, or even cash out unused time later on. Understanding if you’ll continue to receive bonus payouts and equity vesting (from stock options or other structures) will help you plan for the financial impacts of being on leave.

4. Is coverage provided for fertility or adoption-related expenses?

Support for fertility treatments, adoption, or surrogacy is becoming more common, especially in the tech sector. Even where some IVF treatments are publicly funded, multiple cycles are often needed, and costs add up quickly. Coverage in this area can make a huge difference for families.

5. Are there any limitations around tenure or return of service?

Some companies require a minimum length of employment before you’re eligible for top-up pay. Others offer scaled benefits. For example, this could mean two months of top-up coverage for employees with one year of service, compared to six months for those with ten.

It’s also worth checking if you’re required to return to work for a set period after your leave, as some organizations may ask for repayment of the top-up if you don’t.

Parental leave policies can be complex, so we recommend asking your HR team or manager for a full copy of the policy and reviewing it carefully. Understanding the details up front helps you plan confidently and advocate for what your family needs.

Want to know how your parental leave policy stacks up against market comparables? EquiPay offers a comprehensive market evaluation of your compensation, factoring in your title, level, industry, and location. But we don’t stop at salary; we also cover bonus structures, stock options, severance, parental leave, and much more. With this insight, you can approach your negotiation with clarity and confidence.

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