Following the 4 yearly review of the Modern Awards by the Fair Work Commission, a number of changes have been introduced to ensure consistency around annual leave provisions.
Under the updated Storage Services and Wholesale Award 2010:
- EFT: An employee paid by electronic funds transfer (EFT) may be paid in accordance with their usual pay cycle while on paid annual leave – cl 26.3;
- Paid Annual Leave in Advance: An employee and employer may agree in writing to the employee taking a period of paid annual leave in advance. This agreement must follow the conditions prescribed by the Award. On the employee’s termination, the employer may deduct an amount paid to the employee to which an entitlement has not been accrued – cl 26.7;
- Cashing Out Annual Leave: An employee and employer may agree in writing to cash out paid annual leave. This agreement must follow the conditions prescribed by the Award. An employer must not cash out more than 2 weeks of paid annual leave in any period of 12 months – cl 26.8;
- Excessive Leave Accrual: An employee has an excessive leave accrual if the employee has accrued more than 8 weeks’ paid annual leave (10 weeks for a shift worker). In these circumstances, an employer and employee may seek to confer with the other and genuinely try to reach agreement on how to reduce or eliminate the excessive leave accrual – cl 26.9;
a) Where an agreement is not reached, an employer may direct an employee to take a period of paid annual leave in accordance with cl 26.10;
b) Alternatively, an employee may give a written notice to the employer requesting to take a period of paid annual leave in accordance with cl 26.11.
Under the Food, Beverage and Tobacco Manufacturing Award 2010, the changes are:
- Annual Leave Loading: An employee must be paid an annual leave loading of 17.5% or the relevant weekend penalty rates – cl 34.5;
- EFT: An employee paid by electronic funds transfer (EFT) may be paid in accordance with their usual pay cycle while on paid annual leave – cl 34.6;
- Excessive Leave Accrual: An employee has an excessive leave accrual if the employee has accrued more than 8 weeks’ paid annual leave (10 weeks for a shift worker). In these circumstances, an employer and employee may seek to confer with the other and genuinely try to reach agreement on how to reduce or eliminate the excessive leave accrual – cl 34.7;
a) Where an agreement is not reached, an employer may direct an employee to take a period of paid annual leave in accordance with cl 34.8;
b) Alternatively, an employee may give a written notice to the employer requesting to take a period of paid annual leave in accordance with cl 34.9. - Paid Annual Leave in Advance: An employee and employer may agree in writing to the employee taking a period of paid annual leave in advance. This agreement must follow the conditions prescribed by the Award. On the employee’s termination, the employer may deduct an amount paid to the employee to which an entitlement has not been accrued – cl 34.10;
- Cashing Out Annual Leave: An employee and employer may agree in writing to cash out paid annual leave. This agreement must follow the conditions prescribed by the Award. An employer must not cash out more than 2 weeks of paid annual leave in any period of 12 months – cl 34.13.
If you would like to find out more information about these changes and what they mean for your business, call the NRA Hotline today on 1800 RETAIL (738 245).