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Selected cases

High Court of Australia · [2020] HCA 29

Mondelez v AMWU

A High Court case on how paid personal/carer's leave is calculated under the Fair Work Act for employees with non-standard rosters.

High Court of Australia13 Aug 2020

Plain-English explainers, not legal advice. Check the linked official source before you rely on a specific section, and get advice for your situation.

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Quick read

  • Employers should calculate personal/carer's leave through ordinary hours and payroll rules, not informal notions of a calendar day.
  • A High Court case on how paid personal/carer's leave is calculated under the Fair Work Act for employees with non-standard rosters.

Use this to check

  • Leave entitlements need to be configured correctly for shift workers.
  • Payroll rules should be reviewed against awards, enterprise agreements and the NES.
  • A payroll setting can become a legal dispute if it does not match the entitlement.

Decision snapshot

  1. 1

    What happened

    • Mondelez employees at a manufacturing site worked 12-hour shifts under an enterprise agreement that described ordinary hours as 36 hours per week and provided 96 hours of paid personal/carer's leave per year for relevant shift workers.
    • The unions argued that the Fair Work Act entitlement to 10 days of paid personal/carer's leave meant 10 working days, so a 12-hour shift worker should receive more hours than a standard-hours worker.
  2. 2

    What the court had to decide

    • The Court had to decide whether "10 days" meant 10 working shifts of whatever length the employee would otherwise have worked, or a notional entitlement based on one-tenth of ordinary hours over a two-week period.
  3. 3

    What the court decided

    • The High Court allowed the appeal and adopted the notional-day approach.
    • In effect, paid personal/carer's leave accrues by reference to ordinary hours of work, not by giving every shift worker 10 full shifts regardless of shift length.

Practical impact

Practical read

  • Employers should calculate personal/carer's leave through ordinary hours and payroll rules, not informal notions of a calendar day.
  • Shift patterns and enterprise agreements need careful payroll setup.

Useful next steps

  • Leave entitlements need to be configured correctly for shift workers.
  • Payroll rules should be reviewed against awards, enterprise agreements and the NES.
  • A payroll setting can become a legal dispute if it does not match the entitlement.
  • Audit leave accrual settings for full-time, part-time and shift workers.
  • Check enterprise agreement wording against the National Employment Standards.

Practical read

Mondelez is a payroll system case in practical clothing. Everyone knew the Fair Work Act said 10 days of paid personal/carer's leave. The fight was about what a "day" means when employees do not work ordinary 7.6 hour days and a missed shift may be 12 hours long.

For employers, the story is painfully familiar: a payroll setting that looks technical can turn into a major legal question. Leave accrual needs to be checked against the National Employment Standards, the enterprise agreement, the roster pattern and the way balances are shown to staff.

Checks to run

Key points

  • Audit leave accrual settings for full-time, part-time and shift workers.
  • Check enterprise agreement wording against the National Employment Standards.
  • Keep payroll decisions documented, especially where workers have non-standard rosters.
  • Review employee communications so they explain leave balances accurately.

Key takeaways

  • Leave entitlements need to be configured correctly for shift workers.
  • Payroll rules should be reviewed against awards, enterprise agreements and the NES.
  • A payroll setting can become a legal dispute if it does not match the entitlement.

Related topics

Employment & Workplace

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