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Re: Resignation - annual leave payout.

Newbie

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I've recently resigned (I won't be physically attending work during my notice period!). My employement ends one week through a job keeper cycle - my question is does my employer have to pay for this full fortnight of job keeper plus annual leave entitlements. Ie I  owned 52 hours of annual leave - plus job keeper or not I'm confused? 

 

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Enthusiast

Replies 4

I would refer to the following link from Fairwork. I have highlighted in bold some of the applicable information. According to that your employment ends at the end of the notice period. You would also still accrue leave entitlements during that time.

 

Annual leave would be paid out as normal on termination.

 

https://coronavirus.fairwork.gov.au/coronavirus-and-australian-workplace-laws/pay-and-leave-during-c....

 

Notice period when an employee resigns

An employee’s notice period can run at the same time as a JobKeeper enabling stand down direction and any rostered work. Employment ends at the end of the notice period. It can also end earlier if the employer and employee both agree.

During the notice period, an employee gets paid the same as if they hadn’t given notice. For an employee receiving JobKeeper payments from their employer, this is the greater of:

  • their applicable JobKeeper payment, or
  • their usual pay for any work they do perform during the notice period (including any leave payments or public holiday pay they are entitled to).

For information about the different applicable JobKeeper payments, visit the ATO website - Payment rates  page.

If a JobKeeper enabling stand down direction ends or is revoked before the end of the notice period, the employee’s pay will go back to normal. This could happen if the JobKeeper enabling stand down direction is withdrawn by the employer or the JobKeeper scheme ends during their notice period.

Learn more about resignation under a JobKeeper enabling stand down direction in Ending employment during a stand down in our Library.

5 REPLIES 5

Most helpful response

Enthusiast

Replies 4

I would refer to the following link from Fairwork. I have highlighted in bold some of the applicable information. According to that your employment ends at the end of the notice period. You would also still accrue leave entitlements during that time.

 

Annual leave would be paid out as normal on termination.

 

https://coronavirus.fairwork.gov.au/coronavirus-and-australian-workplace-laws/pay-and-leave-during-c....

 

Notice period when an employee resigns

An employee’s notice period can run at the same time as a JobKeeper enabling stand down direction and any rostered work. Employment ends at the end of the notice period. It can also end earlier if the employer and employee both agree.

During the notice period, an employee gets paid the same as if they hadn’t given notice. For an employee receiving JobKeeper payments from their employer, this is the greater of:

  • their applicable JobKeeper payment, or
  • their usual pay for any work they do perform during the notice period (including any leave payments or public holiday pay they are entitled to).

For information about the different applicable JobKeeper payments, visit the ATO website - Payment rates  page.

If a JobKeeper enabling stand down direction ends or is revoked before the end of the notice period, the employee’s pay will go back to normal. This could happen if the JobKeeper enabling stand down direction is withdrawn by the employer or the JobKeeper scheme ends during their notice period.

Learn more about resignation under a JobKeeper enabling stand down direction in Ending employment during a stand down in our Library.

Newbie

Replies 3

Thanks so much- so to clarify they can't use my job keeper to pay out my annual leave- so annual leave and job keeper payments are seperate? 

Devotee

Replies 2

Hi @Fairydust ,

 

To firstly clarify, Jobkeeper is a reimbursement of a companys costs if the company meets Jobkeeper guidelines, it is not a payment made directly to an employee.

 

Under jobkeeper 1.0 if you work during a jobkeeper fortnight, even for an hour, you need to be paid $1,500 to cover the full fortnight. As you are leaving, your employer will also be processing unused leave this is also included in the fortnights pay. So if salary is $700 for example and you have $1,000 in unused leave, there is no top up due as total received is above $1,500 threshold for the fortnight.

If pay plus unused leave and other termination payments is less than $1,500 then you are due to receive the top up payment.

 

There are a number of options if you do not feel your employer is being fair. Contact Fairwork.gov.au or try this link https://www.ato.gov.au/Non-profit/Newsroom/Looking-after-your-workers/Keeping-JobKeeper-Payment-fai...

 

Stay healthy

Newbie

Replies 1

Hi Philip,

So to clairify on Leaving I am entitled to one fortnight's job keeper and my annual leave- so I waa on the books for 5 Days for the job keeper period so that entitles me to the $1200, plus any unused annual leave? Ie 52 hours. My work are claiming they won't be paying me the $1200 (job keeper) as they are using it to pay out my annual leave! 

ATO Community Support

Replies 0

Hiya @Fairydust,

 

As stated by @Philipi, the Jobkeeper payment is a reimbursement to your employer. The stipulation is, that they must pay you the full amount of Jobkeeper as a minimum. So if the hours you worked, plus your annual leave payout is more than $1200, you are not entitled to any top up payment. The amount is definitely able to be used towards annual leave. So you wouldn't be getting anymore than what you would be entitled to if JobKeeper didn't apply.

 

The only time this would be different is if your hours worked, plus your leave pay out was LESS than $1200. Then you would receive the full $1200 amount.