My employer has decided to give employees 2 days loyalty leave after 5 years of service out of their own pocket. It is to be used within 6 months and does not accrue or roll over. Do they have to pay me super on these 2 days?
Hi @Newbie2024
Sounds like you have a great employer 😊.
Super is only paid on Ordinary time earnings (OTE) for an employee’s ordinary hours of work including things like commissions and shift loadings along with some leave types, bonuses, and allowances.
Generally, it comes down to what your award or agreement states.
The good will your employer is offering at their expenses is complex, while it comes about because of the loyalty given to their business, is it seen as ordinary hours worked? I recommend you speak with Fair Work and ask them how this offer falls within the award or agreement you're under or is it seen as a personal gift where OTE would not apply, and therefore super is not payable.
If Fair Work is not able to determine if the offer forms part of OTE then you'll need to follow it up with our Tailored technical advice area for them to investigate and determine how the law applies to this particular scenario.
Most likely yes, but will depend upon the fine details.
As this leave is being given gratuitously, it may be detrimental to your relationship with your employer if you request super as well.
[removed by moderator 25/01/2023]
Hi @Newbie2024
Sounds like you have a great employer 😊.
Super is only paid on Ordinary time earnings (OTE) for an employee’s ordinary hours of work including things like commissions and shift loadings along with some leave types, bonuses, and allowances.
Generally, it comes down to what your award or agreement states.
The good will your employer is offering at their expenses is complex, while it comes about because of the loyalty given to their business, is it seen as ordinary hours worked? I recommend you speak with Fair Work and ask them how this offer falls within the award or agreement you're under or is it seen as a personal gift where OTE would not apply, and therefore super is not payable.
If Fair Work is not able to determine if the offer forms part of OTE then you'll need to follow it up with our Tailored technical advice area for them to investigate and determine how the law applies to this particular scenario.
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