Gidday team, through my job as an accountant I have a basic understanding of certain aspects of employment law, hoping someone can provide clarification on the following:
A family member who is employed has basically been told the company employing him needs to reduce his hours significantly starting next week. He has near enough 4x weeks of annual leave.
My understanding is this - if he agreed to reduce his hours, the annual leave he has accrued at x amount of hours per week would not be paid out on the same basis they were accrued, but would instead be paid out on the basis of his new standard hours, i.e. 4 weeks annual leave at say 40 hours per week entitles him to be paid 4 weeks worth of 40 hours, however if his new standard hours were 20 hours per week he would still have 4 weeks annual leave, however these would only be paid out at 20 hours per week if he took that annual leave on his reduced hours.
As a result of this reduction in hours, he's considering handing his notice in. He has a 4 week notice period. The employer will be providing a variation of hours agreement to amend his employment contract to the new hours which he will be expected to sign before the end of the week if he wishes to continue working for his employer.
If he hands in his notice while on his current hours, my understanding is he is entitled to serve the notice period and be paid for the hours he performs or would perform under his current contract. If this does not suit the employer, they must pay him him for the hours he would work during the notice period in lieu of actually working the hours.
Regarding the annual leave component - his annual leave would be paid out post-notice period. Therefore, his notice period (4 weeks) plus annual leave accrued (4 weeks at his current contracted hours) is 8 weeks of wages he is entitled to. Factor in the public holidays that fall over Christmas and New Years and he is very nearly entitled to 9 weeks worth of wages.
If my understanding is correct, my advice to him was that he should hand his notice in and that he should be entitled to the nearly 9 weeks wages at his current contracted hours.
I understand no legal advice is allowed to be provided on this sub, however I am not seeking advice but merely seeking a yes/no as to whether my understanding is correct based on the information I've provided from someone more knowledgeable in employment law than myself. Feel free to private message me if you wish. Cheers
A family member who is employed has basically been told the company employing him needs to reduce his hours significantly starting next week. He has near enough 4x weeks of annual leave.
My understanding is this - if he agreed to reduce his hours, the annual leave he has accrued at x amount of hours per week would not be paid out on the same basis they were accrued, but would instead be paid out on the basis of his new standard hours, i.e. 4 weeks annual leave at say 40 hours per week entitles him to be paid 4 weeks worth of 40 hours, however if his new standard hours were 20 hours per week he would still have 4 weeks annual leave, however these would only be paid out at 20 hours per week if he took that annual leave on his reduced hours.
As a result of this reduction in hours, he's considering handing his notice in. He has a 4 week notice period. The employer will be providing a variation of hours agreement to amend his employment contract to the new hours which he will be expected to sign before the end of the week if he wishes to continue working for his employer.
If he hands in his notice while on his current hours, my understanding is he is entitled to serve the notice period and be paid for the hours he performs or would perform under his current contract. If this does not suit the employer, they must pay him him for the hours he would work during the notice period in lieu of actually working the hours.
Regarding the annual leave component - his annual leave would be paid out post-notice period. Therefore, his notice period (4 weeks) plus annual leave accrued (4 weeks at his current contracted hours) is 8 weeks of wages he is entitled to. Factor in the public holidays that fall over Christmas and New Years and he is very nearly entitled to 9 weeks worth of wages.
If my understanding is correct, my advice to him was that he should hand his notice in and that he should be entitled to the nearly 9 weeks wages at his current contracted hours.
I understand no legal advice is allowed to be provided on this sub, however I am not seeking advice but merely seeking a yes/no as to whether my understanding is correct based on the information I've provided from someone more knowledgeable in employment law than myself. Feel free to private message me if you wish. Cheers
R.