Call Now
  1. Home
  2. Media releases
  3. A win for employers employsure welcomes high courts judgement regarding personal carers leave

“A Win For Employers” – Employsure Welcomes High Court’s Judgement Regarding Personal / Carer’s Leave

Published August 13, 2020 (last updated on April 19, 2024) | Adam Wyatt - Content Writer

female factory worker examines bottles

The High Court’s decision to reverse a Federal Court ruling on how personal and carer’s leave is calculated for permanent national system employees is a win for employers across the country, according to Employsure, Australia’s largest workplace relations advisor.

A 2019 ruling against Cadbury manufacturer Mondelez found the Fair Work Act’s minimum 10 days’ paid personal leave should be given to permanent employees regardless of the number of days worked per week or number of hours per day.

That decision has now been reversed.

“Today’s ruling takes away the unnecessary financial risk business owners may have faced due to the confusing nature of the original decision,” said Employsure Managing Director Ed Mallett.

“The decision, had it remained, could have had significant ramifications for employers across a number of sectors, leaving a number of businesses to foot the bill.

“In practical terms, what today’s reversal of the decision means for workers is that their leave entitlements are based on the number of ordinary hours they work in a fortnightly period.

“The ruling is a win for employers who have already been stretched to breaking point over the past year due to COVID-19.”

The reversal by the High Court means the rate of personal and carer’s leave will revert back to the way it used to be calculated prior to August last year.

Permanent full-time employees are entitled to 10 days personal leave per annum, while permanent part-time employees are entitled to a pro rata amount based on number of ordinary hours worked.

The payment will be paid based on ordinary hours normally worked had the employee not been on leave.

Mr Mallett has advised employers to communicate with their staff on the outcome of the High Court’s decision, to avoid any potential confusion.

“If an employer changed how personal leave operates following the original Federal Court ruling last August, they need to update their payroll system accordingly,” he said.

“Staff need to be assured that they don’t need to do a thing, and that when personal or carer’s leave is taken, the business will comply with the Governing legislation.

“If an employer did not change how personal leave operates as a result of last August’s decision, the employer should still reiterate with staff that the way they operate personal or carer’s leave in the business is accurate, and no further action is needed.”

Learn more

Latest Media Releases

Have a question?

Employsure Logo

Not a client yet?

1300 207 182

Existing clients call (AU)

1300 651 415

Existing clients call (overseas)

+61 2 8123 3640

Employsure HQ

Level 6/180 Thomas St, Sydney NSW 2000
Peninsula LogoEmploysure Law LogoFair Work Help LogoEmploysure Mutual LogoBright HR LogoHealth Assured LogoGraphite HRM Logo
Peninsula LogoEmploysure Law LogoFair Work Help LogoEmploysure Mutual LogoBright HR LogoHealth Assured LogoGraphite HRM Logo

Copyright © 2024 Employsure Pty Ltd. ABN 40 145 676 026

Employsure Protect is a financial product issued by Employsure Mutual Limited ACN 630 256 478 (AFSL 544232). Employsure Mutual has appointed Employsure Pty Ltd as its Authorised Representative (No. 001274577) to distribute the product and provide general advice. To decide if this product is right for you, please read the Employsure Protect Product Disclosure Statement (PDS) and Target Market Determination.