Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 11 AUGUST 2014

Calculating payments for leave, redundancy and notice under the Fair Work Act

Holding Redlich
Holding Redlich
Contributor
Holding Redlich

Holding Redlich

Holding Redlich is a large national commercial firm with offices in Melbourne, Canberra, Sydney,...

View firm profile
Explore more from Holding Redlich

Employers must calculate payments for annual leave, personal carer's leave and redundancy using the 'base rate of pay'.

AustraliaEmployment and HR
Charles Power
Charles Power
Author LinkedIn connections

The Fair Work 2009 (Cth) (FW Act) requires employers to calculate payments for annual leave, personal carer's leave and redundancy using the employee's 'base rate of pay'.

The base rate of pay is the rate of pay payable to the employee for his or her ordinary hours of work. It excludes incentive-based payments and bonuses, loadings, monetary allowances, overtime or penalty rates, and any other separately identifiable amounts.

The FW Act requires payments in lieu of notice to be calculated using the 'full rate of pay', which includes all those separately identifiable amounts excluded from the base rate of pay.

In Maughan Thiem Auto Sales Pty Ltd v Cooper [2014] FCAFC 94, the Court considered whether a motor mechanic's base rate of pay included an 18% loading. The employee's employment contract described the loading as a "penalty rate" for the afternoon shift he worked.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

New Minimum Wage Rates Gain Effect In Australia Today

The Australian Government has raised the National Minimum Wage and Minimum Award Wages effective July 1, 2026, with weekly rates increasing from $948.00 to $1,004.90 and hourly rates from $24.95 to $26.44. What compliance actions must employers take to avoid penalties for underpayment, and how do these changes affect different worker categories including trainees, apprentices, and entry-level employees?
AustraliaEmployment and HR
Lexplosion Solutions Private Limited
Lexplosion Solutions Private Limited
Video

National Safe Work Month – For Life – Why WHS Matters (Video)

October is National Safe Work Month, and Cooper Grace Ward's workplace relations and safety team explores why work health and safety matters for every business. Special counsel Gemma Sharp examines the legal duties of PCBUs and officers to protect workers from both physical and psychosocial hazards, emphasizing that safety must be woven into the fabric of business operations rather than treated as an afterthought.
AustraliaEmployment and HR
Cooper Grace Ward
Cooper Grace Ward
Podcast

Employment Relations Podcast – Enterprise Bargaining In The Spotlight: Intractable Deadlock Or Genuine Agreement?

Recent Australian workplace reforms have fundamentally altered enterprise bargaining dynamics, introducing new mechanisms like intractable bargaining determinations and expanded Commission powers to amend agreements. How should employers navigate these changes to develop effective bargaining strategies while managing risks associated with mandatory terms, genuine agreement principles, and the better off overall test?
AustraliaEmployment and HR
Piper Alderman
Piper Alderman
Podcast

Podcast: Inside The Claim With CGW – Flight Risk: Grounded By A Galley Cart

Cooper Grace Ward's Damien Jarrett and Jess Byrne examine Hunter v Alliance Airlines Pty Ltd, a Supreme Court workers' compensation case involving a cabin crew member's back injury from a jammed galley cart. The discussion explores how the case evolved from maintenance and staffing allegations into a training dispute, and examines the court's approach to quantum arguments when the injured worker chose to pursue her own business rather than return to employment.
AustraliaEmployment and HR
Cooper Grace Ward
Cooper Grace Ward
Article

Fair Work Commission Releases New AI Guidance And Warns Against Blind Reliance On AI

The Fair Work Commission has introduced new guidance requiring parties to disclose their use of generative AI in proceedings, following a 70% surge in workload attributed to AI-generated applications. A recent case demonstrates the consequences of blind reliance on AI tools, with one applicant ordered to pay costs after continuing a jurisdictionally flawed claim despite repeated warnings from the Commission.
AustraliaEmployment and HR
Holding Redlich
Holding Redlich
Article

Reforms To Restraints: What The Competition And Fair Work Legislation Amendment (Banning Unfair Non-Competes) Bill 2026 Means For Employers

The Albanese Government has released draft legislation that would fundamentally reshape how Australian employers use restrictive covenants and competitive agreements. The proposed Competition and Fair Work Legislation Amendment (Banning Unfair Non-Competes) Bill 2026 seeks to prohibit or strictly regulate no-poach agreements, wage-fixing arrangements, non-compete clauses, and co-worker non-solicitation terms.
AustraliaEmployment and HR
Piper Alderman
Piper Alderman
Article

Digital Duty Of Care: What Australian Businesses Need To Know

The Australian Government's proposed digital duty of care reforms would extend online safety obligations far beyond social media platforms to encompass any business operating websites, digital platforms, or AI-enabled tools. Rather than simply responding to complaints, businesses would need to proactively identify foreseeable risks and implement safeguards, with substantial penalties for non-compliance reaching up to $109.2 million for companies. The exposure draft introduces a fundamental shift from reacti
AustraliaPrivacy
Holding Redlich
Holding Redlich
Article

Update On Status Of Key Tax Measures Announced In Budget 2026-27

Australia's 2026-27 Budget introduces sweeping changes to capital gains tax, negative gearing, and discretionary trust taxation, fundamentally reshaping decades of established tax policy. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 has now received Royal Assent, but significant controversy surrounds key provisions including the new 30% minimum tax on discretionary trusts and restrictions on corporate beneficiaries. How will these reforms affect existing trust structures, investment strategies, a
AustraliaTax
Holding Redlich
Holding Redlich
Article

Fair Work Commission Releases New AI Guidance And Warns Against Blind Reliance On AI

The Fair Work Commission has introduced new guidance requiring parties to disclose their use of generative AI in proceedings, following a 70% surge in workload attributed to AI-generated applications. A recent case demonstrates the consequences of blind reliance on AI tools, with one applicant ordered to pay costs after continuing a jurisdictionally flawed claim despite repeated warnings from the Commission.
AustraliaEmployment and HR
Holding Redlich
Holding Redlich
Article

OAIC Guidance And How Private Sector Organisations Can Prepare

The Office of the Australian Information Commissioner has released guidance on new automated decision-making transparency requirements under the Privacy Act, commencing 10 December. Private sector organisations using AI-enabled products, recruitment technologies, fraud detection tools, pricing algorithms and other data-driven systems must now assess whether their automated systems trigger disclosure obligations in privacy policies.
AustraliaPrivacy
Holding Redlich
Holding Redlich
Article

Automated Decision-Making: New OAIC Guidance Highlights Expectations For Government Agencies

Australian government agencies face a December 2026 deadline to update their privacy policies with detailed explanations of automated decision-making systems. The Office of the Australian Information Commissioner's new guidance clarifies when computer-assisted decisions trigger disclosure obligations, how human oversight affects those requirements, and what specific information agencies must reveal about the personal data and decision types involved in their automated processes.
AustraliaGovernment, Public Sector
Holding Redlich
Holding Redlich
Article

Victoria’s New Data Centre Rules – Implications For Developers And Operators

Victoria's new Sustainable Data Centre Action Plan introduces comprehensive planning, renewable energy, and community benefit requirements for data centre developments. The regulations establish location restrictions, noise limits, renewable energy mandates, and water supply requirements while creating new referral authorities to oversee compliance. These changes will significantly impact how developers and operators plan and execute data centre projects in Victoria's rapidly expanding market.
AustraliaMedia, Telecoms, IT, Entertainment
Holding Redlich
Holding Redlich
Article

Federal Budget 2026-27: Three Tax Changes Reshaping Investment, Trust Structures And Business Planning

Australia's 2026-27 Federal Budget introduces sweeping tax reforms that fundamentally reshape investment planning, trust structures, and business operations. The replacement of the 50% CGT discount with indexed gains and a 30% minimum tax, restrictions on negative gearing to new builds only, and a 30% minimum tax on discretionary trusts create unprecedented challenges for property investors, professional services firms, and family businesses. Understanding how these three interconnected measures work togeth
AustraliaTax
Holding Redlich
Holding Redlich