Annual leave when taking a pay cut

Archi on 16/08/2016 - 17:27

So I work for a small company for a few years have accumulated a few weeks of annual leave,

I decide to take a lower position in the company that has a lower rate of pay..

I find that I don't like it and resign after a few weeks

What rate of pay should that accumulated annual leave be paid out..on the old higher pay rate at which is was accumulated on or the lower rate because that is now your new salary…

Financial

Comments

  • retiredfeline on 16/08/2016 - 17:31

    I think it ought to be pro-rata, depending on the salary when the leave was accumulated. Why don't you ask?

    • Archi on 16/08/2016 - 17:53
      +1

      I will ask…

      I was just thinking out aloud…

      Pre empting the argument … Not exactly on speaking terms.

      Tried to submit and online enquiry to fair work to see whether there was any regulations around that.. just wanted to prepare myself should it not go my way.. but the website was so hard to navigate and then registering and all this other details you had to input… Was very hard just on a cell phone

      • [Deactivated] on 16/08/2016 - 21:15

        Yes, I had the same issues with the fair work site when I was trying to help out a friend.

      • PVA on 16/08/2016 - 21:23

        ask on their twitter site, I have found that to be fine. Or phone them.

  • Youfah Mizzum on 16/08/2016 - 18:24
    +14

    Your payout for annual leave will always be at your final pay rate. NOT pro rata based on differing rates throughout your employment.

    Think of it like this:
    If your were to actually take some annual leave, how could you pro rata time away from the office taking leave? Your payroll will just continue paying you at your current wage/salary.
    So the same is for an annual leave payout.

    Another way of thinking of it…If you had a pay rise, then took annual leave, would you expect your leave pay to be reduced because some of that accumulated time was at a lower rate? No of course not - you would be paid at your current pay rate. Likewise with an annual leave payout upon resignation (if you had a higher salary) - it would be at the higher rate.

    • Skramit on 16/08/2016 - 19:11

      Yeah what he said.

      Leave is paid out (either through resignation or redundancy) at your current rate of pay.

    • Archi on 16/08/2016 - 19:49

      I was thinking the same, just wanted someone to reaffirm that ..

      Thank
      S

    • retiredfeline on 19/08/2016 - 09:38

      Thanks, that's useful to know. I'll wait until after a promotion before quitting.

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