On 13 May 2020, NSW Parliament passed laws which will create greater flexibility for Local Government workers to access Annual Leave entitlements during and after the ongoing COVID-19 crisis. Workers will continue to accrue annual leave if stood down without pay due to COVID-19 for six months from 25 March 2020 and local government workers will have the ability to cash out or take annual leave at half pay or double pay with the agreement of the employer.
These laws are effective on and from 14 May 2020.
The following FAQs will assist local government employers and workers in managing leave arrangements.
1. I am a local government worker, can I cash out my annual leave?
Yes. The recent amendments to the Annual Holidays Act 1944 provide that an employer and a worker may agree to payment in lieu of taking a period of accrued annual leave. The amount paid in lieu must not be less than the amount that would have been payable had the worker taken the leave.
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2. Can a local government worker cash out all of their annual leave?
No. The recent amendments to the Annual Holidays Act 1944 mean that you will need to have at least four weeks of accrued leave remaining after the payment has been made.
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3. I am a local government worker and would like to take some of my annual leave at double pay. Is this possible?
Yes. Where agreed between the employer and the worker, the worker can take a specified period of annual leave at double pay, but the worker will need to have at least four weeks of accrued leave remaining after the payment has been made.
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4. I am a local government worker and would like to take some of my annual leave at half pay. Is this possible?
Yes. Where agreed between the employer and the worker, the worker can take a specified period of annual leave at half pay.
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5. Mary is a local government worker and wants to take 1 week of her accrued annual leave entitlement at double pay. Mary gets paid $600.00 per week, how does this work in practice?
Firstly, Mary must reach agreement with her employer to take one week’s annual leave at double pay. If her employer agrees, Mary will take one week off work at a specified time and be paid for that week at twice her ordinary pay.
This means she will receive a total of $1200.00 for that one week of leave and two weeks’ annual leave will be deducted from Mary’s accrued annual leave entitlement.
Importantly, to be eligible to take leave at double pay Mary’s remaining annual leave entitlement after her holiday must be at least four weeks.
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6. Sanjeev is a local government worker and wants to take a period of four weeks off work using his accrued annual leave entitlement but wants to do this at half pay. His ordinary rate of pay is $600.00 per week. How does this work in practice?
Firstly, Sanjeev must reach agreement with his employer to take four weeks leave at half pay. If his employer agrees, he will only need to use two weeks of his accrued annual leave entitlement to be away from work for the four-week period. He will be paid at half his ordinary pay for the 4 week period. This means instead of his normal $2400.00 pay for four weeks, he will instead receive a total of $1200.00.
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7. Are the recent amendments to the Annual Holidays Act in the local government sector ongoing?
Yes. The recent amendment to the Annual Holidays Act 1944 to allow payment in lieu of annual holidays and payment of annual leave at double or half pay are permanent changes.
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