Superannuation on annual leave loading: a change to the historical approach?

The decision could potentially have broader reaching impacts for other types of payments which are not paid on ordinary hours or at ordinary rates of pay, as outlined by Hayley Lock, Paul Hum, Stephanie Renshaw and Bhavish Beharee.

Annual leave loading has long been considered to only form part of ordinary times earnings (OTE) where it is demonstrably referable to the loss of the ability to work overtime. However, Justice Driver of the Federal Circuit and Family Court of Australia applied a different test in the recent matter of Finance Sector Union of Australia vs Commonwealth Bank of Australia [2022] FedCFamC2G 409 (CBA case), handed down on 27 July 2022.   The facts The dispute arose as the Commonwealth ...

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Authors: Hayley Lock, Paul Hum,

Published Date: 06 October 2022