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Your questions answered: Can we freeze an employee’s long service leave pay?

By Portner Press on October 30th, 2019
  1. Employee Management
  2. Leave Provisions

Q
Is it legal for an employer to freeze an employee’s pay rate after the employee, with long service leave entitlement fails to take leave for more than 12 months?

For example, if at the time of entitlement the employee’s rate was $20 per hour in 2017 but the employee fails to take leave after being notified of their entitlement until 2019 where their rate is $26 per hour.

Does the employer pay the employee $20 per hour for long service leave in 2019 even if their current rate is $26 per hour? We are based in Western Australia.

A
No, generally long service leave must be paid at the employee’s ordinary rate of pay at the time the leave is taken. If your employee’s entitlement is under the West Australian Long Service Leave Act, you can find more information about payment here.

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