13 Aug UPDATE: MONDELEZ LEAVE DECISION GETS OVERTURNED
Today, the High Court has set aside the Full Federal Court’s decision regarding the accrual of personal/carer’s leave for part-time employees and employees who work an average of more than 7.6 hours per day.
This decision means that the original interpretation that part-time employees are entitled to 1/26 of the entitlement of full-time employees is correct.
The High Court stated: “The expression ’10 days’ in s96(1) of the Fair Work Act 2009 (Cth) means an amount of paid personal/carer’s leave accruing for every year of service equivalent to an employee’s ordinary hours of work in a week over a two-week (fortnightly) period, or 1/26 of the employee’s ordinary hours of work in a year. A ‘day’ for the purposes of s 96(1) refers to a ‘notional day’, consisting of one-tenth of the equivalent of an employee’s ordinary hours of work in a two-week (fortnightly) period.”
Today’s decision is a welcome outcome for employers although it may cause some need to act if an employer has changed their Employment Contracts or if they have amended their accrual rates as a result of the Full Federal Court Decision handed down on 21 August 2019.
If you have any questions regarding this decision or how it may affect your employees and how they accrue personal/carer’s leave, please contact our office.