Leave and Overtime Payments 02 9331 0266
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Better Workplace Solutions Leave and Overtime Payments 02 9331 0266 Calculating Annual Leave Full time employees are entitled to 20 days a year annual leave. Pro rata leave entitlements apply to permanent part time workers. Annual leave is accrued on ordinary hours of work Formula: 38 hrs/week x 7.6923% = 2.93 hrs accrued per week. Total = 152 hours per year (4 wks or 20 days) Employees are entitled to 17.5% leave loading on Annual Leave Calculating Sick Leave Full time employees are entitled to 10 days a year sick leave. As with annual leave, pro rata entitlements apply to permanent part timers and leave is accrued on ordinary hours. Formula: 38 hrs/week x 3.864% = 1.46 hrs accrued per week. Total = 76 per year (2 weeks or 10 days). This can be applied to pro rata hours. Overtime Payments Calculation: 1 and 1/2 times the base rate for the first 2 hours overtime worked; and double the base rate for time thereafter. Sundays: Overtime is calculated at double time for all time worked on Sundays For casuals: A loading of 25% of base pay Parental leave and related entitlements The National Employment Standards entitle employees to take up to 12 months unpaid parental leave, the right to ask for an extra 12 months unpaid leave and other types of maternity, paternity and adoption leave. This applies to all employees in Australia, even if they’re not covered by the National workplace relations system. Who qualifies for parental leave? Full-time, part-time and casual employees can take unpaid parental leave if: • they are responsible to care for a newborn or newly adopted child • they have (or will have) at least 12 months ‘service’ before the date of birth or adoption. Better Workplace Solutions Leave and Overtime Payments 02 9331 0266 Extra conditions apply to casual employees. They must: • have been working with their employer on a regular and systematic basis for at least 12 months • have a reasonable expectation of ongoing employment. Paid Parental leave Some employees can also be entitled to paid parental leave. The Australian Government Paid Parental Leave Scheme provides a maximum of 18 weeks pay at the National Minimum Wage. This applies to eligible primary carers of newborn or adopted children. The payments are made by the Government to the employer, who then pays it to the employee. Many employers also provide paid parental leave through enterprise agreements, contracts of employment or workplace policies. These can help businesses attract and keep talented staff. The amount of leave and pay entitlements will depend on the workplace. For details about parental leave, log in to http://www.fairwork.gov.au/.