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Workplace Relations Amendment (Improved Protection for Victorian Workers) Bill 2003

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2002

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

 

 

 

 

WORKPLACE RELATIONS AMENDMENT (IMPROVED PROTECTION FOR VICTORIAN WORKERS) BILL 2002

 

 

 

 

SUPPLEMENTARY EXPLANATORY MEMORANDUM

 

 

Amendments to be Moved on behalf of the Government

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by authority of the Minister for Employment and Workplace Relations, the Honourable Tony Abbott MP)



OUTLINE

 

The proposed Government amendments are designed to correct a deficiency in the formula for calculating the annual leave entitlements of Victorian employees covered by the minimum entitlements in Schedule 1A or the Workplace Relations Act 1996.

 

FINANCIAL IMPACT STATEMENT

 

The amendments proposed to the Bill will not have any impact on Commonwealth expenditure.

 

 

 



 

NOTES ON AMENDMENTS

 

These amendments will alter Schedule 1 of the Bill.

 

Amendment No. 1

 

This amendment corrects a deficiency in the formula for the calculation of annual leave proposed in Item 26 of the Bill. 

 

The formula proposed in Item 26 is premised on a standard working year of 48 weeks (with the remaining 4 weeks being annual leave).  This formula does not provide a correct calculation of annual leave entitlement in every situation - ie, where an employee works more or less than 48 weeks in any particular year.

 

The amendment seeks to address this deficiency by providing that an employee is entitled to annual leave, for each year worked, of the number of ordinary hours calculated by multiplying by 4 the usual number of ordinary hours worked by the employee per week during the year. 

 

The amendment also provides a formula for calculation of annual leave entitlement in cases where the weekly variations in the number of ordinary hours worked by an employee are such that there is no usual number of hours.

 

In addition, the amendment clarifies that absence from work on certain forms of paid leave is to be counted for the calculation of annual leave entitlement as if they were ordinary hours worked by an employee.

 

This amendment does not affect the arrangements proposed in the Bill for the accrual and crediting of annual leave, including pro-rata accrual.

 

Amendment No. 2

 

This amendment confirms that employees are to be paid annual leave entitlements at the rate of pay that would apply if they were to be at work during the period in which leave is taken. This confirms existing practice.

 

Amendment No. 3

 

This amendment inserts an explanatory note which gives an example of when pro-rata accrual of the annual leave entitlement will be relevant.