Pandemic-era rules allowing employees to take double the amount of annual leave at half pay could return and become permanent, under a proposal reportedly put to the Fair Work Commission (FWC).
In an exclusive report, the Australian Financial Review (AFR) states leading industry groups and the union movement are both keen on the move, arguing it would give certainty to workers and employers alike.
As it stands, the Fair Work Act 2009 says terms relating to annual leave, which could include clauses allowing double the amount of leave at half pay, are permitted in industry awards and enterprise bargaining agreements.
But relatively few workplace instruments covering the private sector include those terms, limiting the ability of workplaces and staff to reach an agreement.
Partial workarounds do exist: workplaces and workers can agree on a period of annual leave at full pay, followed by an equivalent period of unpaid leave, effectively granting double the time off at half pay.
Even so, the second, unpaid period of leave has consequences for superannuation and leave accrual, complicating the system for both parties.
The AFR reports the Australian Council of Trade Unions, and groups including the Australian Chamber of Commerce and Industry, would advocate for simpler double-time, half-pay rules before the FWC, which is undertaking its Modern Awards Review for 2023-2024.
While advocates back the measure in theory, industry groups are reportedly keen to ensure approval remains in the employer’s hands, as long stretches of leave could leave a business’ workforce stretched thin.
The opposite proposal — whereby workers could halve their leave balances for double the pay — does not seem to be part of the conversation.
The double-leave, half-pay discussion has already received some air-time in FWC hearings.
On an April 3 hearing on work and care considerations, FWC deputy commissioner Bernadette O’Neill said “there may be some consensus” around “variations to provide for annual leave to be taken at half pay”.
Broader half-pay measures have recent precedent.
As COVID-19 public health restrictions battered workplaces and forced workers to stand down, the Fair Work Commission in 2020 permitted the temporary amendment of major industry awards to allow leave at half-pay.
Stakeholders have until April 26 to file their views to the FWC on work and care issues, before it tables its final report on or near June 28, 2024.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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