Personal Leave – How Much Is Accrued?

Up until recently, the Fair Work Act prescribed that employees were entitled to 10 days of personal leave per year. Commonly, this was interpreted by payroll and human resources personnel as being 76 hours for full time employees, and that part-time employees would receive a pro-rated amount of entitlement.

However, in August this year, the Federal Court have passed down a landmark decision relating to the National Employment Standards entitlement to personal leave per year. Specifically, the Federal Court has concluded that personal leave is to be calculated in days, not hours, and that part-time employees are also entitled to 10 working days of personal leave, regardless of how frequently they work.

The decision also has implications for full time employees who work more than 8 hour shifts, and based on this decision these employees will being entitled to 10 days per year, even if they are working only a 3 day week (i.e. 12 hours per day) or 4 day week (i.e. 9.5 or 10 hours per day).

Following on from the decision, the Australian Government and the Company have appealed to the High Court seeking special leave to appeal the decision. Accordingly, it is difficult to anticipate the long term impact of this decision as yet.

For more information about this case, feel free to contact us.