High Court Ruling on Mondelez Case: Personal Leave Accrual Calculation
The recent High Court decision has overturned the Full Federal Court decision that that the 10 days of personal/carer’s leave per year in the National Employment Standards must reflect an employee’s ordinary hours of work.
This High Court decision means that employers (and in particular those dealing with payroll) can return to the accrual of personal/carer’s leave on an hourly basis. When leave is taken it is deducted from the employee’s accrued paid personal/carer’s leave on an hourly basis.
Further, part-time employees are entitled to 10 “notional days” of paid personal/carer’s leave per year, which is based on the employee’s ordinary hours of work in a two-week period. The personal leave accrual method is 1/26th per hour worked.
If you updated your payroll systems taking into account the Full Federal Court decision in the Mondelez case, you will need to update your system again to ensure that your employee’s accruals are being recorded correctly.
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