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Payment in lieu of notice and annual leave accrual

Payment in lieu of notice and annual leave accrual

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Old Mar 13th 2012, 10:44 pm
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Default Payment in lieu of notice and annual leave accrual

Does anyone know if annual leave entitlement is accrued during the period when an employee has been given one months salary in lieu of notice?
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Old Mar 15th 2012, 10:33 am
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Default Re: Payment in lieu of notice and annual leave accrual

Originally Posted by desert-rat
Does anyone know if annual leave entitlement is accrued during the period when an employee has been given one months salary in lieu of notice?
More information is needed maybe for people to help you.
Is the months' salary given on termination of employment or is it as a result of salary sacrifice.
It may be a good idea to contact your hr department or state/federal industrial relations office to see what the award/enterprise agreement that covers the situation says.
If it is for leave, it may not accrue, as you are taking the money instead of taking the leave-I am sure that you cannot have both at the same time.
If you have been give notice of termination, you can't accrue leaveand carry it over to new employment........
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Old Mar 15th 2012, 11:01 am
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Default Re: Payment in lieu of notice and annual leave accrual

Originally Posted by desert-rat
Does anyone know if annual leave entitlement is accrued during the period when an employee has been given one months salary in lieu of notice?
Impossible for me to know for definite about your contract, but I have left 3 jobs and it definitely accrued in all 3.
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Old Mar 15th 2012, 3:16 pm
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Default Re: Payment in lieu of notice and annual leave accrual

I think not. Depends on the circumstances, but I was made redundant with no notice and am entitled to a flat fee payout "in lieu of notice". I am no longer employed, so I no longer accrue annual leave. It was a year ago this week the company I worked for went into administration, and I still haven't received a penny of what I am owed. But don't get me started.

Contact Fair Work Australia / Fair Work Ombudsman for queries, although I found that they dragged their feet until it was no longer their problem. Hope it works out for you.
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Old Mar 15th 2012, 6:34 pm
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Default Re: Payment in lieu of notice and annual leave accrual

I think not, you accrue leave whilst you are an employee, not afterwards. If you have been paid in lieu of notice you cease to be an employee immediately. That is not to say it could not be negotiated though, but I don't think it would be the default.
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Old Mar 15th 2012, 9:52 pm
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Default Re: Payment in lieu of notice and annual leave accrual

Thanks for the advice.
I was assuming that payment in lieu of notice should entitle the employee to everything he would have got if they had worked the notice period.
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Old Mar 15th 2012, 11:55 pm
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Default Re: Payment in lieu of notice and annual leave accrual

Originally Posted by desert-rat
Thanks for the advice.
I was assuming that payment in lieu of notice should entitle the employee to everything he would have got if they had worked the notice period.
There is logic to that too. Could you just ask employer?
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Old Mar 16th 2012, 1:14 am
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Default Re: Payment in lieu of notice and annual leave accrual

Should probably check your contract. In mine it says if the company chooses to pay me in lieu of working my notice period, it would pay the full amount of all totals it would otherwise have paid if I had of worked the full notice period.
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Old Mar 16th 2012, 2:09 am
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Default Re: Payment in lieu of notice and annual leave accrual

The first thing I did was ask the HR/IR/Payroll departments of my former employer. This employer is a British owned PLC with a worldwide reputation for not paying its employees everything they are due.
My notice letter says I will get 4 weeks in lieu of notice paid at my base salary.
My contract says annual leave is accrued monthly on the base salary.
Looks like I will have to get on to fairworkaustralia
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Old Mar 16th 2012, 4:56 am
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Default Re: Payment in lieu of notice and annual leave accrual

Originally Posted by desert-rat
This employer is a British owned PLC with a worldwide reputation for not paying its employees everything they are due.
A big oil company by any chance?
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Old Mar 16th 2012, 6:45 am
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Default Re: Payment in lieu of notice and annual leave accrual

Not an oil company but a company which provides services to the oil and gas industry.
Not actually wanting to give the name away but Cant Actually Pay Entitlement or Cant Arrange Peoples Employment lol
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