Hot Issues
spacer
Small businesses may ‘collapse under strain of payday super’, IPA warns
spacer
ATO’s hands tied with scrapping on-hold debts, expert says
spacer
What Drives Your Business Growth and Profits?
spacer
Australian Taxation Office (ATO) shifting to firmer debt collection activity
spacer
Why employee v contractor comes down to fine print
spacer
Sharing economy reporting regime for platform operators
spacer
Countries producing the most solar power by gigawatt hours
spacer
Illegal access nets $637 million
spacer
Accessing superannuation benefits.
spacer
Does your business have a company Power of Attorney?
spacer
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
spacer
GrantConnect
spacer
2 in 3 SMEs benefit from instant asset write-off, survey reveals
spacer
Updated guidance on R&D claims
spacer
Do you know how to recover debts?
spacer
Wheat Production by Country
spacer
Types of small business benchmarks
spacer
What is a Commercial Lease?
spacer
ATO warns advisers against suspect R&D tax claims
spacer
The year of workplace law upheaval
spacer
How to Resolve Invoice Payment Disputes
spacer
Raft of revenue tweaks in MYEFO to raise millions
spacer
The Countries that Export the Most Wine in the World
Article archive
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
spacer
Quarter 3 July - September 2022
spacer
Quarter 2 April - June 2022
spacer
Quarter 1 January - March 2022
spacer
Quarter 4 October - December 2021
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 3 of, 2020 archive
spacer
September update of latest COVID-19 initiatives.
spacer
ATO JobKeeper 2.0 guidance surfaces
spacer
Expats Return to Australia – Travel Expenses
spacer
Profession to be relied on for post-JobKeeper turnover certificates
spacer
Update of Superannuation contribution rules from July 1, 2020
spacer
Expats & COVID-19 Impacts on tax residency
spacer
Economic recovery could be slower than anticipated: RBA
spacer
High Court rules in favour of employers on personal leave accruals
spacer
JobKeeper Phase 2 - Latest Update
spacer
Payroll Tax 2020 concessions and JobKeeper
spacer
High alert issued over myGov tax time scam
spacer
Extended director penalty regime to catch out ‘zombie companies’
spacer
SG amnesty deadline - 7 September
spacer
‘Hundreds’ to be contacted in ATO early super compliance blitz
spacer
90,000 SMEs to benefit from new JobTrainer program
spacer
Work Related expenses – 2020
spacer
‘Everyone is now on notice’: ATO acquires COVID-19 data on 3m Aussies
spacer
Extra Tools & Resources for our clients.
spacer
Year End Tax Deductions – “equipment”
spacer
Home Office Claims 2020
spacer
Early release of super sees ‘high take-up’
spacer
Tax time 2020: ATO homes in on rental deduction claims
spacer
ATO announces Div 7A COVID-19 assistance
High Court rules in favour of employers on personal leave accruals

The High Court of Australia has preserved the long-standing industry practice regarding personal/carer’s leave accruals in a significant ruling that has been welcomed by employers that were potentially set to face a substantial back-pay bill.

 

       

The High Court of Australia has granted the appeals by Mondelēz International and the Australian government against the previous decision of the Full Federal Court, clarifying the quantum of personal/carer’s leave entitlements for millions of employees.

The Full Federal Court’s 2019 ruling against Mondelēz found the Fair Work Act’s minimum 10 days of paid personal leave should be given to permanent employees regardless of the number of days worked per week or number of hours per day. 

But a summary issued by the High Court of Australia on Thursday revealed that a majority of the High Court rejected the “working day” construction and instead held that what is meant by a “day” or “10 days” must be calculated by reference to an employee’s ordinary hours of work.

“Because patterns of work do not always follow two-week cycles, the entitlement to ‘10 days’ of paid personal/carer’s leave can be calculated as 1/26 of an employee’s ordinary hours of work in a year,” the summary reads.

Commenting on the outcome, Innes Willox, chief executive of national employer association Ai Group, said the High Court’s judgment preserves widespread industry practice.

“If the Federal Court’s interpretation of the expression ‘10 days of paid personal/carer’s leave’ in section 96 of the Fair Work Act had been upheld, there would have been major cost implications for a very large number of businesses,” Mr Willox said.

“In addition, a major barrier would have been imposed on employers agreeing to part-time employment arrangements, including for employees returning from parental leave.”

Mr Willox noted that the case was brought on because of action relating to “12-hour shift workers at the Mondelēz International plant in Claremont, Tasmania”, but the Federal Court’s ultimate ruling had implications for most employers in Australia.

In turn, the interpretation adopted by the High Court ensures that all employees are entitled to take up to two weeks off work each year for personal/carer’s leave regardless of how many ordinary hours an employee works in that two-week period.

“A full-time employee who works 38 ordinary hours per week is entitled to 76 hours of personal/carer’s leave per year, and a part-time employee who works 20 hours per week is entitled to 40 hours of personal/carer’s leave per year,” Mr Willox explained. “The court’s judgment ensures equity among full-time and part-time employees, and among eight-hour and 12-hour shift workers.”

Tracy Angwin, CEO of the Australian Payroll Association, also welcomed the final outcome of a case that had cast a shadow over some 1 million shift workers around the country, noting that the “outcome will come as a major relief to employers and payroll professionals”.  

Ms Angwin said: “The original decision would have placed significant additional financial burden on companies, and also created a disparity in entitlements for part-time employees, and a level of complexity that could lead to employers re-considering flexible working arrangements.

“We are pleased to see that the historical understanding of personal leave accruals has been upheld.”

‘Win for employers’

Employsure managing director Ed Mallett referred to the ruling as a win for employers who have already been stretched to breaking point over the past year due to COVID-19.

He advised employers to communicate with their staff on the outcome of the High Court’s decision, to avoid any potential confusion.
 
“If an employer changed how personal leave operates following the original Federal Court ruling last August, they need to update their payroll system accordingly,” Mr Mallett said.

“Staff need to be assured that they don’t need to do a thing, and that when personal or carer’s leave is taken, the business will comply with the governing legislation.
 
“If an employer did not change how personal leave operates as a result of last August’s decision, the employer should still reiterate with staff that the way they operate personal or carer’s leave in the business is accurate, and no further action is needed.”

 

 

Maja Garaca Djurdjevic 
14 August 2020 
accountantsdaily.com.au

 

site By AcctWeb