HIGH COURT OVERTURNS MONDELEZ DECISION

HIGH COURT OVERTURNS MONDELEZ DECISION

On 13 August 2020, the High Court overturned the Full Federal Court decision, clarifying how paid personal/carer’s leave is accrued and taken.

Personal/carer’s leave entitlements will be accrued per the Fair Work Act 2009 (“the Act”), which is an entitlement to 10 days personal/carer’s leave per year is calculated based on an employee’s ordinary hours of work, not working days. One “day” refers to a “notional day” consisting of 1/10^th of the equivalent of an employee’s ordinary hours of work in a two week period.

The High Court emphasised fairness, including fair treatment between employees based on their ordinary hours and also fairness for employers and employees to know at any time how much paid personal/carers leave is accrued. Overturning the Full Federal Court decision will maintain entitlement equality across workers on different rosters, ensuring all permanent workers accrue personal/carer’s leave at the same rate, irrespective of variations in shift times.

The initial ruling sparked confusion and uncertainty about calculating personal/carer’s leave and would have placed significant additional financial burden on companies, and also created a disparity in entitlements for part-time employees, and a level of complexity that could lead to employers reconsidering flexible working arrangements.

If you have any questions in relation to the High Court ruling and its implications on you, please contact our office.