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Are leave entitlements getting a shake up?

Are leave entitlements getting a shake up? A recent Australian Federal Court case concerning employee leave entitlements may have caught your attention.

The Court concluded that, despite the employer’s claim employees were only entitled to 10 days of personal leave paid out at a standard rate of 7.6 hours per day, the employees were entitled to a rate of 12 hours per day, reflecting the workers’ actual shifts.

There may be some fear or concern about the implications of this decision and potential flow-on affect to Australian employers, however it is important to note this ruling is only based on a specific set of circumstances.

There has been no indication this will become the standard for all other industries across Australia, and there are many other possible considerations for businesses when determining how leave is accrued and paid out, including enterprise agreements.

If any employers wanted to review their leave processes, Sybiz Visipay has the flexibility to accrue and pay out leave depending on your circumstances.

Within Sybiz Visipay, leave is not accrued based on the hours worked per day but as a whole over the pay period. Even in circumstances where two employees both work 38 hours per week but with differing shift lengths, their leave accruals will still result in the same amount.

Whether employees are submitting requests through Sybiz Visipay or Employee Self Service, they have the option to calculate leave by days or hours. This is especially useful in cases where employees may only wish to take leave for part of a working day.

Approval officers should be a little savvy about how they calculate the hours a leave day will incur for each staff type, to ensure that employees are receiving their proper entitlements.

The Fair Work Ombudsmen is an important resource if you have any questions about the implications of this court ruling on your business and to ensure you are meeting legislative requirements.

If you have any questions about setting up staff types, managing leave requests or setting up an Employee Self Service option in Sybiz Visipay, contact your Business Partner.

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