Annual leave loading is designed to compensate employees for the loss of penalty rates and overtime etc whilst they are on annual leave.
A recent Fair Work decision has however found that an employee was entitled to both weekend penalty rates and annual leave loading whilst on annual leave due to the wording of the relevant employer Enterprise Agreement.
This case highlights the need for clear drafting of Enterprise Agreements and the difficulties in interpreting their provisions. If you require assistance with drafting, negotiating or interpreting Enterprise Agreements, get in touch with MKL Legal.
Read the full decision here:
https://www.fwc.gov.au/documents/decisionssigned/pdf/2024fwc1475.pdf