ID :
163348
Wed, 02/23/2011 - 12:12
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http://m.oananews.org//node/163348
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Workers who quit are set to get richer
Feb. 23 (AAP) - Workers who quit a job will soon be a bit richer following a new legal interpretation of national employment laws.
Under existing workplace arrangements, employees forfeit the right to untaken annual leave loadings when they leave a job.
But the Fair Work Ombudsman, which interprets and enforces workplace laws, says departing award-wage earners should now be entitled to loadings on untaken annual leave.
This follows legal advice it sought from the Australian government solicitor on accrued leave.
Fair Work Ombudsman Nicholas Wilson has conceded the new interpretation of the Fair Work Act of 2009 would confuse employers.
"I am certainly aware of the advice that we're giving today is at odds with the advice we might have been giving earlier in the year to last year," he told a Senate estimates hearing on Wednesday.
"All of the advice that we're giving today is, to some degree, different from what would have been given two years ago."
The legal opinion is likely to affect workers employed under national modern awards, which came into force in July 2010.
The interpretation means employers may have to add 17.5 per cent leave loading to the termination pay of workers, even if this wasn't part of the modern award.
Workers in the road transport sector are among those who stand to be better off when they relinquish a job.
Employers can only avoid paying these entitlements if they successfully challenge the ombudsman's decision in court, something only larger corporations would be able to afford to do.
Federal Employment Minister Chris Evans indicated he would stand by the ombudsman's legal opinion.
"We know there's been a problem in relation to annual leave loadings," Senator Evans told an estimates committee.
"In terms of solutions, in policy terms, I'm happy to have discussions with the department and what actions are occurring in that field."
A spokesman for the minister said employees should be not disadvantaged for declining to take their accrued annual leave before quitting a job.
The Australian Chamber of Commerce and Industry said the interpretation of workplace laws should be left to Fair Work Australia, the industrial tribunal, and not the ombudsman.
"This interpretation of the law is different to what everyone understood until recently," chief executive Peter Anderson told AAP.
"The government should not allow the law to be changed in that backdoor way."
The legal opinion was tabled in federal parliament on Wednesday.
Under existing workplace arrangements, employees forfeit the right to untaken annual leave loadings when they leave a job.
But the Fair Work Ombudsman, which interprets and enforces workplace laws, says departing award-wage earners should now be entitled to loadings on untaken annual leave.
This follows legal advice it sought from the Australian government solicitor on accrued leave.
Fair Work Ombudsman Nicholas Wilson has conceded the new interpretation of the Fair Work Act of 2009 would confuse employers.
"I am certainly aware of the advice that we're giving today is at odds with the advice we might have been giving earlier in the year to last year," he told a Senate estimates hearing on Wednesday.
"All of the advice that we're giving today is, to some degree, different from what would have been given two years ago."
The legal opinion is likely to affect workers employed under national modern awards, which came into force in July 2010.
The interpretation means employers may have to add 17.5 per cent leave loading to the termination pay of workers, even if this wasn't part of the modern award.
Workers in the road transport sector are among those who stand to be better off when they relinquish a job.
Employers can only avoid paying these entitlements if they successfully challenge the ombudsman's decision in court, something only larger corporations would be able to afford to do.
Federal Employment Minister Chris Evans indicated he would stand by the ombudsman's legal opinion.
"We know there's been a problem in relation to annual leave loadings," Senator Evans told an estimates committee.
"In terms of solutions, in policy terms, I'm happy to have discussions with the department and what actions are occurring in that field."
A spokesman for the minister said employees should be not disadvantaged for declining to take their accrued annual leave before quitting a job.
The Australian Chamber of Commerce and Industry said the interpretation of workplace laws should be left to Fair Work Australia, the industrial tribunal, and not the ombudsman.
"This interpretation of the law is different to what everyone understood until recently," chief executive Peter Anderson told AAP.
"The government should not allow the law to be changed in that backdoor way."
The legal opinion was tabled in federal parliament on Wednesday.
