Changes Across the Tasman
A recent change to Australia's employment law means employers face
paying overtime, shift allowances and penalty rates to employees for
time taken as sick leave.
The Australian Fair Pay and Conditions Standard has introduced a calculation
of leave that means employees are to receive what they "would
reasonably have expected to be paid by the employer if the employee
had worked during that period". This would mean employees
would be entitled to receive, on top of their base wage, payments of
overtime, shift allowances and penalties if these payments are what
they would reasonably be able to expect had they worked on that day.
This has the potential
to significantly increase the amount of leave payments owed, especially
in workplaces where overtime, shift allowances and penalties are common.
In New Zealand, the amount of pay an employee receives for sick leave
is calculated with regard to the particular day concerned and the remuneration
the employee would have received if he or she had worked. The
pay must therefore include any productivity or incentive-based payments,
commission or overtime payments if they would have otherwise been received
had they worked on that day. It is not sufficient that to say
there was a possibility that they would have worked overtime on that
day. It will only be payable in circumstances where overtime
is always worked on that day or where all other employees worked overtime
on that day.
For more information, please contact:
Erin Davies
Partner, Brookfields
t: +64 9 979 2177
m: +64 29 622 2300
e: Erin Davies
Last updated: 15 November 2006
This article is intended to be brief in nature and should be used for information only. It should not be relied on as legal advice. |
