The Workplace Relations Minister announced potential changes to the Holidays Act that could impact part-time workers’ sick leave entitlements. The draft legislation, set for release ahead of targeted consultation in September, aims to address challenges faced by businesses following the increase in sick leave entitlements from five to 10 days in 2021.
One proposed change is the pro-rating of sick leave to better align with employees’ working hours. This means part-time workers may receive a proportionate amount of sick leave compared to full-time workers. For example, a full-time employee would still receive 10 days of sick leave, while part-time employees would receive a proportion based on their hours worked.
The minister highlighted the need for simplicity and reduced complexity in the law to benefit both businesses and workers. She mentioned the consideration of shifting annual leave to an accrual system, aligning entitlements with hours worked.
Consultation on these proposed changes will involve targeted stakeholder groups, with a focus on ensuring the Act is workable for businesses of all sizes. The goal is to create legislation that is easy to implement and understand, addressing long-standing issues with the Holidays Act that have led to miscalculations in holiday pay for many workers.
While the proposed changes aim to streamline the Act and reduce compliance costs for employers, they may result in adjustments to sick leave entitlements for part-time workers.