One proposed change relates to the provision of annual leaves
The government is seeking feedback from businesses and workers on amendments to the Holidays Act 2003.
“I want to get feedback from stakeholders who will eventually have to work with the Act. We need the Act to be workable for everyone, from the multi-national corporates to the small-town family-run restaurants. I believe it is important to hear from small businesses in particular, given small businesses will adopt a range of working arrangements and often do not have the same payroll infrastructure as larger organisations", said Minister for Workplace Relations and Safety Brooke van Velden.
van Velden noted that businesses had faced challenges adapting to the previous government’s decision to double sick leave entitlements for qualified workers. Thus, the intent with the proposed amendments is to bolster certainty and limit complexity.
“Workplaces that rely on part-time workers are particularly vulnerable to unexpected staffing shortages. To explore this issue further, the exposure draft set for consultation will include a proposed approach to pro-rating sick leave, to better reflect how much an employee works”, she said.
A proposed change set for inclusion in the exposure draft involves shifting from an entitlement system to an accrual system when it comes to annual leaves.
“Shifting to an accrual system for annual leave entitlements is just common sense. While workers might not notice any change in their entitlements, from a payroll perspective this should make a huge difference. An accrual system should help avoid the complex calculations that regularly stump payroll software and should therefore reduce compliance costs for employers”, van Welden explained.
The exposure draft is set to be unveiled for targeted consultation in September to ensure that the law is applicable across different working arrangements.
“Change has been a long time coming, and I know there are many who are frustrated with the Holidays Act. We need an Act that businesses can implement, and that makes it easy for workers to understand their entitlements. We need to do this once and do it right", van Welden said.
