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The much-anticipated proposed changes to the Holidays Act 2003 were announced in late September by Workplace Relations and Safety Minister, the Hon Brooke van Velden. The Minister said the new legislation will give more confidence and certainty to both employers and employees, and will fix the ‘broken system.’
Proposed key changes include:
- Hours-based accrual for sick and annual leave: replacing the current regime of having to take off one full day of leave
- Pro rata sick leave: will be proportionate to hours worked
- Leave compensation payment for casual workers: they will generally receive an up-front payment of 12.5% for each hour worked rather than the current 8% pay-as-you-go regime
- Leave compensation payment for additional hours worked: hours worked above the contracted hours will see a 12.5% upfront payment for each additional hour worked, rather than accruing annual or sick leave
- Family violence and bereavement leave: access to this special leave from the first day of employment
- Returning from parental leave: new parents will receive full pay for annual leave when they return from parental leave
- Mandatory pay statements: employers will be required to provide clear pay statements each pay period, and
- Cashing up annual leave: large annual leave balances will have more flexibility to cash up – up to 25% of total annual leave balance each year.
Submissions on the proposed changes will be considered by a select committee; opportunities will be available to provide input.
The changes will be included in the Employment Leave Bill; implementation will be 24 months after the bill is passed allowing a smooth transition for employers and payroll providers.
Until then, provisions in the current Holidays Act 2003 will apply.
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