PDA

View Full Version : Annual leave loading included in rate



samfordtemp
18-07-2013, 07:16 PM
Hi, I am busy reading a NSW employment contract and it states:

Remuneration = X hourly

Annual leave loading - is included in rate.

Could someone explain the leave loading.

Many thanks

Moz
18-07-2013, 10:31 PM
leave loading is an archaic system unique to Australia as far as I am aware, whereby you get paid extra when you take annual leave. I think it's usually 15%

It may have been compulsory at one time, but it started to be phased out by most corporate/private employers 20-25 years ago.

Nowadays I think it's only Govt employees and maybe some industrial award /blue collar workers who get it.

If a contract says that it's incorporated in the hourly rate, that probably means that it's not paid when you take leave.

Tiger
19-07-2013, 08:04 AM
Hi, I am busy reading a NSW employment contract and it states:

Remuneration = X hourly

Annual leave loading - is included in rate.

Could someone explain the leave loading.

Many thanks

Annual Leave Loading (A/L/L) dates back to around the l940s and actually had its origins with the coal mining industry. Moz is correct in that there has been some phasing out. However, for those employees who are covered by awards, there may still the requirement (in the award) to pay this loading - usually 17.5% on the annual leave amount.
Most organizations with a white collar workforce not covered by an award would these days generally no longer pay this as they, as Moz suggests, have done away with it. During the l990s and early 2000s I initiated removal of it from two companies I worked for.

So what your contract is saying is that your employer no longer pays it and has worded your letter that way to ensure you have no expectation of it, in case you did!

Tiger