If we hire a new employee under the Manufacturing & Associated Industries & Occupations Award 2010in VIC, what instrument do we use to calculate their LSL?
For an employer that has confirmed that award-derived long service leave provisions apply, how do we know which groups of employees obtain long service leave from these award-derived provisions? What about new employees?
If an employer has established that award-derived long service leave provisions under s113 of the Fair Work Act 2009 (the Act)apply in the business, the next task is ascertaining which employees will obtain their entitlement from that award and which employees will obtain their entitlement from a State/Territory long service leave act.
For advice about whether award-derived long service leave provisions apply to an employer, please contact Ai Group.
The Act partially preserves the long service leave provisions contained in pre-modern awards. However these provisions will only apply if the work currently being performed by the employee could have been covered by, and classified within that award as at the 31 December 2009. This means that the general rule of thumb is to imagine that the employee is working in their current position but that the date is 31 December 2009.
With that in mind, could the work that the employee is currently performing have been covered by and classified within the pre-modern award which contains long service leave?
If the answer is yes, s113of the Act will apply and the employees entitlement to long service leave will be as per the award. This will include new employees or existing employees who have moved into a new roles within the business that could have been covered by that award.
If the answer is no, the employee will obtain their long service leave entitlement from the relevant State/Territory legislation.
It is important to be aware that a change within the business which results in a change to the legal entity that employs the employees may have an impact on the application of award-derived long service leave provisions under s113 of the Act.It is recommended that employers obtain specific advice in relation to their circumstances.
A company has award-derived long service leave provisions from Part IV of the Metal, Engineering and Associated Industries Award 1998 (the Federal Metals award) that apply to the business. The company has an existing supervisor who is currently covered by the Manufacturing and Associated Industries and Occupations Award 2010 within their Metal Fabrications business.
Because the company was respondent to the Federal Metals award as at 31 December 2009, and the work that this employee is performing could have been covered by and classified within the Federal Metals Award, this employees' long service leave will continue to be derived from Part IV of the Federal Metals award.
However, if this employee moves into a management role or other role that could not have been covered by or classified within the Federal Metals Award, the employee’s long service leave will instead be as per the relevant State/Territory legislation.
A company has award-derived long service leave provisions from Part IV of the Federal Metals awardthat apply to the business. The company has an existing process worker who is currently covered by the Manufacturing and Associated Industries and Occupations Award 2010 within their Metal Fabrications business.
Because the company was respondent to Federal Metals award as at 31 December 2009, and the work that this employee is performing could have been covered by and classified within the Federal Metals Award, this employee’s long service leave will continue to be derived from Part IV of the Federal Metals award.
If this employee moves into a storeworker role, apprenticeship or any other role that could have been covered by and or classified within the Federal Metals Award, the employee’s long service leave will continue to be derived from Part IV Federal Metals Award.
A company has award-derived long service leave provisions from Part IV of the Federal Metals awardthat apply to the business. The company hires a new trades person to work in their Metal Fabrication business.
Because the company was respondent to the Federal Metals award as at 31 December 2009, and the work that this employee is performing could have been covered by and classified within the Federal Metals Award, this employee’s long service leave will be derived from Part IV Federal Metals award.
A company has award-derived long service leave provisions from Part IV of the Federal Metals awardthat apply to the business. The company hires a new receptionist to work in their Metal Fabrication business.
Because the work that this employee is performing could not have been covered by or classified within the Federal Metals Award, this employee’s long service leave will be derived from the relevant State/Territory legislation.
