Annual leave loading on termination in the Security Award
Employees get paid annual leave loading when their employment ends.
They get the loading even though the Security Award says it’s not paid if an employee was dismissed for misconduct.
This means when their employment ends, an employee gets paid for their accumulated annual leave and 17.5% annual leave loading.
See Final pay for more information on calculating final pay.
Why is annual leave loading paid on termination?
The amount an employee has to be paid for annual leave when their employment ends must be the same as what the employee would be paid if they were on annual leave.
This means that if the employee is paid a loading while taking annual leave, that loading will also be paid when the employments ends.
Fair Work Act 2009 – section 90(2) says that when employment ends, employee must get paid what they would’ve been paid had they take the period of leave.
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