The Fair Work Act 2009 (FWA) sets out the national workplace relations framework for Australia, providing comprehensive guidelines for employers and employees regarding workplace rights and obligations. Among these provisions are clear requirements for different types of leave entitlements.
- Annual Leave
- Full-time and part-time employees are entitled to 4 weeks of paid annual leave per year, based on their ordinary hours of work.
- Shift workers may be entitled to an additional week of annual leave.
- Leave accrues progressively throughout the year and carries over if unused.
- Personal/Carer's Leave and Compassionate Leave
- Full-time and part-time employees are entitled to 10 days of paid personal/carer's leave per year.
- Employees can use this leave if they are unwell or need to care for a family member or household member.
- Compassionate leave of 2 days is available for situations such as the death or serious illness of a close family member in addition to the paid Personal / Carer's Leave
- Parental Leave
- Employees who have worked for their employer for at least 12 months are entitled to unpaid parental leave.
- This includes up to 12 months of leave, with the option to request an additional 12 months.
- Both parents can take leave, but not at the same time (except in special circumstances).
- Community Service Leave
- Employees can take unpaid leave for voluntary emergency management activities or jury duty.
- For jury duty, employers are required to pay the employee for the first 10 days.
- Long Service Leave
- Long service leave entitlements are determined by state and territory laws or applicable awards and agreements.
- Generally, all employees (yes including casuals) are entitled to a period of leave after a long period of continuous service, such as 7 or 10 years.
- Public Holidays
- Employees are entitled to be absent from work on public holidays.
- Employers may request employees to work on public holidays if the request is reasonable.
- Family and Domestic Violence Leave
- Employees (including casual employees) are entitled to 10 days of paid family and domestic violence leave each year.
- This leave can be used to deal with the impact of family and domestic violence, such as attending court or accessing support services.
So FWA prescribes that Employers have the following obligations regarding leave entitlements:
Record Keeping: Maintain accurate records of leave taken and accrued by employees.Pay Requirements: Ensure that employees are paid the correct amount for paid leave, based on their usual pay rate.Notification: Provide clear communication regarding leave policies, including how employees can apply for leave.Respecting Rights: Avoid penalizing employees for exercising their leave entitlements.
Failure to comply with the FWA leave requirements can result in significant penalties for employers, including fines (under the new Wage theft legislation) and reputational damage. Employers should regularly review their workplace policies to ensure alignment with the FWA and seek professional advice if needed. So who do business owners count on for that advice. A BAS Agent might be a good start as I realised this week doing some leave adjustments in MYOB for a client. I don't do a lot of MYOB payroll and this week I discovered some really good reasons why…. MYOB only comes with Annual Leave and Personal Leave settings included… yep 2/7 on the list above…. Is that crazy? So if you are on MYOB get in touch you need some help I think…
Can I hear the smug smirks from all the Xero Users out there? Mmmm, have a look at your settings Xero is the same… Xero Users are paying $3.00 to $6.00 per month for a system that requires 5 more leave categories to be set up, very basic timesheets through the XeroMe app, no employee self on boarding and a very limited employee portal. As in your employees will need to call or email you for you to change their bank details… how 2002. No wonder Accountants and Bookkeepers love Xero so much. You need one on call if you are running those sorts of systems. Yes there are other options. My favourite payroll software is priced at about $6 to $8.00 per employee per month and you get onboarding, rosters, time and attendance through multiple devices with GPS tracking, customizable rules, Award interpretation, job costing interaction with ALOT of accounting platforms. Oh but most importantly all the leave categories listed above - yep 7/7! In templates…
Business owners are increasingly liable (criminally too) so why would you mess with payroll or payroll systems that are not really helping you. Ditch your manual payroll systems - or outsource your payroll and get a better night's sleep.
