I am leaving my organisation in NSW two months before 10 years of service when my long service leave is due. They have agreed to payout my long service leave anyway. Can I ask them for an ex gratia payment of the same value instead?
G'day @Melia19 👋
So you don't yet have pro-rata entitlement to LSL but your employer has agreed to pay you an ex-gratia amount that is the same amount as the LSL pro-rata?
Yes, generous employers sometimes do this 🤓
An ex-gratia is an ETP, taxed at 32% or 17%, depending on your age in comparison to the preservation age. There is no super guarantee payable on ex-gratia payments (like there wouldn't be on unused LSL on termination). It would be reported on your income statement as an ETP Type O 😉
It cannot be paid as unused LSL on termination as you have no entitlement to LSL
Deanne
20 June 2024 · 3 min read time
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