Stay informed with the latest Personal Leave changes
On 21 August 2019, the Full Federal Court of Australia handed down a decision in Mondelez Australia Pty Ltd v AMQU FCAFC 138. The decision deals with the method of accruing and taking paid personal and carer's leave.
The Federal Court of Australia made a ruling that changes the way employees are paid their personal and carer's leave. The Court has ruled that leave should now be paid out in days, not hours. This means that if an employee has a sick day, they have one day taken our of their leave accrual, as opposed to having hours deducted. This change effects full time and part time employees.
If you have an employee who works 4 hours on a Monday and 10 hours on a Tuesday, and they call in sick for both days, you will pay them for 4 hours of work for Monday and 10 hours of work for Tuesday and deduct 2 days from their personal leave balance.
The Australia Government and the company involved in the case, Mondelez Australia Pty Ltd, have applied to the High Court of Australia to appeal this decision. If the applications are granted, the appeal then needs to be heard and considered by the High Court. This process is expected to take some time. In the meantime, the decision made on 21 August 2019 is the current state of law and applies to affected employer's and employees.
For more information regarding these changes contact Employsure or visit Fairwork.
The Money Edge | Bundaberg