On October 15, 2013 the Ministry of Business, Innovation and Employment (MBIE) formed a view that because Ms Grey had not been working since 19 August, 2013 she was not eligible for the payments.
Authority member Michele Ryan said MBIE had misconstrued the legislation that said a self-employed person must work 10 hours each week before the leave began, and said Ms Grey was eligible for paid parental leave.
Ms Ryan said in a decision published today that it appeared Ms Grey finished work seven and a half weeks before she assumed care of the baby.
This was too early for her to finish work according to the Parental Leave and Employment Protection Act 1987, Ms Ryan said, but had she applied later, she would have been accepted.
She found that a self-employed person needed only establish that the hours of work undertaken could be averaged out as 10 hours or more per week.
"Ms Grey's time-sheet history establishes that she has satisfied this test," she said.
"I consider her early application can be characterised as a procedural irregularity from which relief may be available. Ms Grey has acted in good faith and this is a case in which it is reasonable for the Authority to grant relief."
In these circumstances MBIE was not able to lawfully decline Ms Grey's application for paid parental leave for the reason it gave.
Comment was being sought from both parties.
