High court clarifies personal leave accrual

17 August 2020

On 13 August the High Court handed down a decision that clarified the accrual of personal leave.

The decision and what it means

The Court declared that the expression ‘10 days’ in the Fair Work Act in regards to personal leave accrual refers to 10 ‘notional days’ rather than 10 ‘working days’.

This means that personal leave is accrued on the basis of an employee’s ordinary hours of work in a year, not their daily rostered hours.

Why this is important

This will be a relief for employers who have been struggling with the practicalities of differencing accruals for part time or roster workers. Accruals can now be returned to 76 hours per annum for all full time workers with the appropriate pro-rata for part-time employees.

For advice and assistance on this decision and how it may impact your business, contact the Master Builders Workplace Relations team.

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