Flagpost is a blog on current issues of interest to members of the Australian Parliament
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.
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...
In February 2014, the Full Bench of the Fair Work Commission (FWC) handed down a judgement in which the nature and role of a ‘support person’ in discussions relating to a dismissal were discussed. Read more...
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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