Solving Holiday Headaches

The key policy consideration behind the changes is to provide clarity and more certainty for employers and employees around entitlements. The Minister says “gone are the days of multiple, confusing calculations for leave payments. One single streamlined and simplified leave payment will apply for all types of leave”.

The Employment Leave Act will introduce an hours-based accrual model for annual and sick leave. Other key changes include: a pro rata sick leave entitlement where sick leave entitlements are proportionate to hours actually worked; leave compensation payments for casual employees who will receive a 12.5% loading as a pay as you go arrangement; there will be leave compensation for additional hours worked; employees will be able to access bereavement and family violence leave from the first day of employment; new parents returning from parental leave will receive their full pay for annual leave; employer will be required to provide pay statements for each pay period itemising pay and leave; and employees who have large leave balances can cash up to 25% of their annual leave entitlement. 

The new Act will have a 24-month implementation period after the Bill is passed into law.

Get in touch with our Employment team if we can help you navigate what this means for your business.