November 6, 2019
The Federal Court of Australia made a ruling that changes the way employers now pay their employees personal leave.
They ruled that personal leave should now be paid out in days, not hours.
This means, that if a worker takes a sick day, they have 1 day taken out of their balance, as opposed to having hours deducted.
The Federal Court ruled in favour of two Mondelez (owner of brands such as Cadbury) workers who, in simple terms, argued that it was unfair they were paid out 7.6 hours of sick leave, when they had a sick day off, as they regularly worked 12 hour shifts.
The change also affects part-time workers. If they work 4 hours per day, and they take a day off, they are paid for an ordinary day’s work – 4 hours.
This ruling only affects paid personal leave, which doesn’t affect casuals. Casuals do not have paid sick leave, but they can refuse to take a shift if they are sick.
Ok – so what if I have a worker who on Mondays works 4 hours and on Tuesdays works 10 hours. They call in sick in both days.
As you did before this ruling, you would pay the employee as much leave as they had in their balance.
No, there’s more. If an employee takes part of a day off on personal leave, then that shall be deducted from the employee’s balance in terms of days.
So, if a worker has a shift of 8 hours and decide to go home sick after 4 hours, 0.5 days shall be deducted from their balance.
It only applies to employees in the national system.
The national system, in terms of employment rights, covers most employees in Australia. This ruling doesn’t apply to the following:
Hmm, that seems overly complex.
Australia’s employment relations system is complex. But it’s ok, Employsure is here to help.
Until the High Court hears the appeal and makes a final decision, businesses should comply with the Federal Court decision.
Ooh, that doesn’t sound good.
We sure do! Get in touch with Employsure’s Helpline on 1300 651 415, and one of our representatives can show you the way forward. Employsure makes workplace relations and compliance easy.
For more information on this change, visit this page: Understanding Personal/Carer’s Leave
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