Advise on the Fair Work Ombudsman's new approach to leave loading

Donaldson Walsh Lawyers  and franchise consultants advise that all franchisors should notify franchisees of the Fair Work Ombudsman’s (FWO) endorsement of a new calculation method which may expose franchisee employers to back-pay claims for leave loading.

While modern awards often do not include provisions for leave loading, this new calculation method means that leave loading will be accrued on the termination or resignation of an employee, backdated to the 1st of January 2010.

The extra payment is based on the National Employee Standards (NES). If staff have left a franchise this year, franchisees need to send the leave loading payment with an explanation that the payment has arisen due to the FWO’s new approach.

For further information, please contact Donaldson Walsh Lawyers.