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Perspective

High Court Ready to Personal Leave Case

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The High Court will hear Mondelez v AMWU, Minister for Jobs and Industrial Relation on 7 July 2020. The current law, based on Full Federal Court (FFC) case is s.92 of the FWA is to be interpreted that the accrued entitlement for personal leave is based on the day a person took leave (could be 4, 8 or 12 hours etc) rather than 10 x 7.6 hours (usual 38 hours week).

This is a huge issue as the FFC decision has thrown payroll into a spin and increased the cost of employers doing business by increasing accruals. The FFC decision is a literal interpretation of the FWA and was not an unexpected decision given the make of the bench. Hopefully the High Court can fix it. If not, it needs legislative amendment immediately.

Until the High Court hands down its decision you are still required to accrue and pay on the basis of the hours of each day a person works.

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