Employment Law Update

Employment Law Update: Personal/Carers Leave – What constitutes a day?

29 August 2019

There has been a recent decision of the Federal Court of Australia regarding how the entitlement to paid personal/carer’s leave is quantified under the Fair Work Act.

You can find our Employment Law Update covering the decision here.

As you will see from the Update, the consequences for employers from the decision include (this list is not exhaustive):

1. Firstly, employers will need to change the method they record personal/carer’s leave accruals in their payroll software from hours to days.  For employees who work 7.6 ordinary hours per day five days per week, employers could continue to record personal/carer’s leave accruals in hours without risk of non-compliance.  However, for employees who work rostered shifts that vary or exceed 7.6 ordinary hours per day and part-time employees, employers’ records will need to reflect days in order to ensure compliance with s 96(1);

2. Secondly, employers will need to ensure that they are paying employees for personal/carer’s leave based on their rostered ordinary hours on the shift they take the leave, rather than notionally 7.6 ordinary hours; and

3. Thirdly, employers will need to ensure that part-time employees are permitted to take 10 days personal/carer’s leave per year of service and not pro-rata of 10 days.

Update as of 17 September 2019: As anticipated in this update regarding the Mondelez decision, both the Federal Government and Mondelez are seeking leave to appeal the decision in the High Court. We will keep you updated in relation to the appeal.

For further information, please contact:

Seamus Burke | Director

seamus@lbclawyers.com.au

Jess Phillips | Lawyer

jessica@lbclawyers.com.au

This document contains information only and should not be relied upon by anyone as constituting legal advice.