When an employee leaves they are paid annual leave and long service leave, but no superannuation. This means that when an employer won't let the employee work out their leave, the employee misses out on the super. This is unfair and confusing.
The super for the annual leave is confusing. Under the Fair Work Act 2009 Section 90 it says
"If, when the employment of an employee ends, the employee has a period of untaken paid annual leave, the employer must pay the employee the amount that would have been payable to the employee had the employee taken that period of leave." This sounds like it should include superannuation.
Recent changes to awards means that employees are now able to ask for annual leave in advance - surely this action attracts superannuation? Otherwise we'd have employees on leave but not attracting super. Annual leave (like normal time) includes super as part of payment/benefit.
The legislation needs to be changed to specify that superannuation is part of the benefit of annual and long service leave and has to be paid. Our retirement system is built on superannuation, so it's critical that employees remain eligible.
Thank you for bringing this idea to the attention of the Board.
The legislative policy pertaining to superannuation contributions specifically excludes from ordinary time earnings payments for unused annual leave and unused long service leave. Your comments raise an interesting point and the Board will take this idea into consideration when looking at our future work plan.
Thank you again for taking the time to share your idea.