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Sickies and the minimum employment period...do they mix?

October 10, 2011

A question frequently asked by employers is whether an employee’s minimum employment period (6 month’s under the Fair Work Act) is affected by absences from work during those periods.

Section 384 (1) of the FWA states

“An employee’s period of employment with an employer at a particular time is the period of continuous service the employee has completed with the employer at that time as an employee.”

Section 22 (2) of the FWA states

“The following periods do not count as service:
(a) any period of unauthorised absence;
(b) any period of unpaid leave or unpaid authorised absence,
…”

Employees accumulate annual and personal leave progressively during the employment so only a short period of paid leave will accrue during the minimum employment period. Extended absences will, in all likelihood, be unpaid.

The effect of the Fair Work Act is that where an employee takes unpaid leave during the minimum employment period, it does not count towards “continuous service“ and the minimum employment period will be extended by the period of such absence.

In the case of a “small business” (less than 15 employees) the minimum employment period is 12 months.

Should you want more information on the minimum employment period and what constitutes service contact Jacques Franken.

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