Illawarra TAFE Long Service Leave

Executive, 25 August 2008

Report adopted

In November 2007 several members from the Illawarra Institute of TAFE raised concerns about an underpayment in their Long Service Leave.

We immediately took the issue up with the Department and when it was clear that the Department was not moving to rectify the issue we lodged a dispute in the IRC.

This lead to a quick resolution where the Department has conceded that several members at the Illawarra Institute were paid less than their full entitlement of Long Service Leave when they took their leave. This was the result of a bizarre TAFE policy that lead to the Institute calculating the hourly pay rate of a seasonal / part time worker on the basis that they were full time. These calculations lead to their hourly rate effectively being halved for the period of their long service leave.

The affected members will now receive back pay. The Department has also agreed to change the TAFE policy to accurately reflect the intent of the NSW Long Service Leave Act 1955 (the Act). The intent of the Act is that where an employee takes long service leave they should receive their ordinary pay in respect of that leave. Ordinary pay under the Act means the remuneration for the employee's normal weekly number of hours of work calculated at the ordinary time rate of pay plus an average of any bonus, commission or other incentive payments paid over the last 12 months or the last 5 years, whichever is greater. Shift work, other penalty rates and overtime payments are not included.

We have commented on the proposed amendments to the policy and we are waiting for the Department's response.