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Flagpost is a blog on current issues of interest to members of the Australian Parliament

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Changes to payment of leave loading on termination of employment

Changes to payment of leave loading on termination of employment This FlagPost examines the changes proposed by the Fair Work Amendment Bill 2014, in relation to payment of leave loading on unused annual leave when an employee ceases employment, and what those changes would mean for employers and employees. Background Annual leave loading is designed to compensate employees for notional loss of overtime earnings whilst on leave. Despite this, it is relatively common in sectors where overtime payments are infrequent. The Fair Work Act 2009 (FWA) changed the previous long-standing position that leave loading was not payable on termination, unless provided for by an industrial instrument (e... Read more...

High Court to decide if mutual trust and confidence is implied in employment contracts

The High Court has granted the Commonwealth Bank of Australia (the Bank) special leave to appeal the Full Federal Court’s decision in Commonwealth Bank of Australia v Barker[2013] FCAFC 83. The case will be significant as it will be the first time the High Court has considered if an implied term of mutual trust and confidence exists in employment contracts.   What is the mutual duty of trust and confidence? The Full Federal Court was the first Australian superior appellate court to consider the issue, and found that the mutual duty of trust and confidence exists as an implied term in employment contracts. It defined the implied term as providing that an:   … e... Read more...

Is an employee who resigns entitled to leave-loading on their unpaid annual leave?

Since the Fair Work Act 2009 (FWA) was introduced, there have been differing views regarding how to calculate the amount payable to an employee who has untaken annual leave when they cease employment. Is it calculated using the employee’s base rate of pay, or must it (if the employee is entitled to it) include leave-loading?Stephen Edward Ryan v Whitehaven Coal Mining Pty Ltd (Ryan v Whitehaven)* may be the first case to have considered the issue. The court ruled that where an employee is entitled to leave-loading, the amount payable for any untaken annual leave must include leave‑loading.The NES and leave loadingUnder the National Employment Standards (NES), there is no entitlement to leav... Read more...

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