For the first time, since the introduction of the Fair Work Act’s National Employment Standards, the Australian High Court has provided a key ruling clarifying paid personal/carer’s leave. The High Court’s decision on 13th August 2020 importantly clarifies the method of accruing & taking paid personal/carer’s leave.
The High Court has overruled the contentious ruling of the Full Federal Court in Mondelez Australia Pty Ltd v AMWU & Ors [2020] HCA 29, finding employees are entitled to 10 ‘notional days’ of personal leave a year by reference to their ordinary working hours. By majority, the Court clarified that personal leave is required by the Fair Work Act to be accrued and taken by reference to “days” rather than a notional number of average hours. The ruling has been welcomed by employers across Australia as almost all payroll systems currently used in Australia can accrue and deduct leave in line with the decision confirmed by the High Court judgment.
The judgment also clarifies part-time employees do not have access to the same hours of personal leave per year when they do not work the same load as full-time employees. Under the judgment, part-time employees are still entitled to 10 days’ leave, however, these are ‘notional days’ and the number of hours in each day of leave is to be calculated on a pro-rata basis depending on how many hours the part-timer works in a fortnight.
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Source: Fairwork
Title: High Court decision: accrual of personal/carer’s leave
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