High Court win for Employers – Personal Leave Calculations

personal leave calculations

A decision overturned

The High Court handed down a decision that has certainly clarified how paid personal/carer’s leave is accrued and taken. On 13 August 2020, the High Court of Australia handed down a decision in Mondelez Australia Pty Ltd v AMWU & Ors [2020] HCA 29 about the method of accruing and taking paid personal/carer’s leave under the National Employment Standards (Mondelez High Court decision).

The High Court of Australia has clarified that:

  • the entitlement to 10 days of personal/carer’s leave under the National Employment Standards (NES) is calculated based on an employee’s ordinary hours of work, not working days 
  • 10 days of personal/carer’s leave can be calculated as 1/26 of an employee’s ordinary hours of work in a year.

This overturns a decision made by the Full Federal Court of Australia in August 2019. In that decision, the Full Federal Court determined that personal/carer’s leave was calculated in working days, not hours.

MOVING FORWARD

Employers only pay the HOURS the employee has off for personal leave, not the DAY. Employees still accrue leave on their ordinary hours worked but if they take a day off work and their hours of work are normally, for e.g. 6 hours, then only 6 hours is paid personal leave (*assuming the employee is a part or fulltime employee).

Employers – if you have any queries about the above please click below and follow the steps!