News Flash

The PSA wrote to the Chief Executive, Department for Families and Communities (DFC) on 19 January 2011 requesting assistance to resolve a matter of alleged incorrect application of annual leave loading resulting in an underpayment of wages.

The Public Service (Recreation Leave Loading) Award at Clause 1.5.2.2 provides that if employed as a shift worker or seven-day week worker the leave loading to be paid when taking periods of annual leave is either a loading of 20 percent or the allowances and penalties payable had the employee not been on leave during the relevant period, whichever is the greater.

What this means is that if a member would have been rostered for shift/s attracting allowances and/or penalty payments during the period of the leave then the leave loading payable is the total of applicable allowances and penalty payments if this amount is greater than 20 percent of the salary for the period of leave.

DFC responded to the PSA advising that they had identified incidents where the leave loading had not been applied correctly and that DFC would need to examine all recreation leave loading paid to all employees engaged as a shift worker or a seven-day week worker.

DFC have recently advised that 628 employees have been identified as likely to have been underpaid. There are also some employees where irregularities have been identified on initial audit and will need re-auditing. DFC expects the audit process to be finalised by mid July 2011.

Back payment will be calculated and paid for all underpayments dating back six years from the initial PSA letter dated 19 January 2011. Members who worked shift work at any time during this period may be eligible for back payment regardless of whether they are working shift work now. This will result in a significant underpayment of wages and be of considerable financial benefit to PSA members.

The PSA will keep members informed of the progress in this matter. 

6 July 2011