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Xero – Gold Partner

Compliance is key for leave entitlement ruling

By | October 14, 2019

A recent Federal Court decision could have significant implications on the personal leave of thousands of Australian employees.

Employers now need to ensure that 10 days of personal leave is available to all staff, irrespective of the number of hours they work per day, as a result of the Mondelez Australia Pty Ltd v Australian Manufacturing Worker Union case in late August.

For example, an employee working three 12 hours shifts per week is entitled to be paid for 12 hours per day of personal leave taken, rather than only 7.2 hours per day as was argued by Mondelez.

If you’re a business owner with shift workers or part-time employees, you should consider:

  • Reviewing your payroll systems for the accrual, taking and payment of leave to ensure that part-time employees don’t receive a pro-rated amount
  • The risk of claims for back pay and breaches of the Fair Work Act by employees
  • Any obligations to relevant awards, enterprise agreements and contracts
  • Whether adjustments need to be made to ensure shift workers who accrue entitlements on an hourly or daily basis are receiving their proper entitlements
  • Your systems for allocation of ordinary and overtime hours and rostering

The Federal Government and Mondelez are both pursuing High Court action to try to overturn the ruling. In the meantime, it’s recommended that businesses ensure they abide by the decision.

Altitude Advisory can provide your business with the support it needs to fully comply with legislation.

If you have any questions, contact us today on enquiries@altitudeadvisory.com.au or (08) 8172 1444.

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