Training Session 14 05 02 2021 Payroll 2 sick leave part 2 13

Quiddity Reception

26 Jun 202101:51

Summary

TLDRThe transcript discusses a recent High Court ruling affecting sick leave accrual. Originally, employees working 7.6 hours daily were entitled to 10 days of sick leave. However, those working 12-hour shifts were disadvantaged, losing 12 hours per sick day. The ruling now requires sick leave to be calculated pro rata based on hours worked. Chester's session clarified this, emphasizing the need to adjust calculations accordingly. The speaker also briefly touches on reimbursements and cents per kilometer, highlighting the importance of becoming familiar with these concepts.

Takeaways

📅 Chester provided the correct answer regarding sick leave accrual during the session.
⚖️ A high court ruling had previously established a system that was disadvantageous for some employees.
⏰ Employees normally work 7.6 hours per day, totaling 38 hours a week, and are entitled to 10 days of sick leave.
🔄 Some companies had employees working three 12-hour shifts, leading to discrepancies in sick leave accrual.
❌ The fixed day-based system was unfair as 12-hour shift workers lost more hours when taking sick leave.
🧑‍⚖️ The case brought attention to the need for a fairer system for calculating sick leave.
✔️ The court ruling was overturned, prompting a change in how sick leave is calculated.
🔢 Sick leave is now calculated on a pro-rata basis, considering the actual hours worked.
📋 The new system aims to clean up the previous discrepancies and ensure fairness.
🛠️ Reimbursements and cents per kilometer are other concepts that will become familiar over time.

Q & A

What was the main issue discussed regarding sick leave in the session?
-The main issue was the method of accruing sick leave and how it disadvantaged employees who worked longer shifts, specifically those working three 12-hour shifts compared to the standard 7.6-hour workday.
Why were employees working 12-hour shifts disadvantaged under the previous sick leave system?
-They were disadvantaged because sick leave was measured in 7.6-hour days. When these employees took a sick day, they lost 12 hours, which was more than the standard 7.6 hours.
What was the result of the high court ruling regarding sick leave?
-The high court ruling was overturned, leading to a new system where sick leave is calculated on a pro rata basis based on the hours worked rather than a fixed amount.
How is sick leave now calculated after the high court ruling was overturned?
-Sick leave is now calculated as a variable amount, pro rata based on the hours worked by the employee.
What was Chester's role in the session?
-Chester provided the correct information regarding the new way of calculating sick leave, which was recently affirmed by the high court ruling.
Why is there a need to clean up the situation after the high court ruling?
-There is a need to adjust the current systems and practices to align with the new ruling, ensuring that the sick leave calculations are fair and accurate.
What was the impact of measuring sick leave in days at 7.6 hours?
-It led to inequities where employees working longer shifts lost more hours of sick leave compared to those working standard hours.
What does 'pro rata' mean in the context of sick leave calculation?
-Pro rata means that sick leave is calculated proportionally based on the actual hours worked by the employee, ensuring fairness regardless of shift length.
What other topics were mentioned to become familiar with besides sick leave?
-The session also mentioned reimbursements and cents per kilometer, indicating these are important concepts to understand.
Why is it important to become comfortable with the concepts of reimbursements and cents per kilometer?
-Understanding these concepts is crucial for accurately managing and calculating employee benefits and compensation related to travel and expenses.

Outlines

00:00

🤔 Understanding Sick Leave Accrual Based on High Court Ruling

This paragraph discusses a situation where the method of accruing sick leave was brought into question due to a high court ruling. Traditionally, employees working 7.6 hours a day would accrue 10 days of sick leave. However, a case arose from a company where employees worked 12-hour shifts, leading to discrepancies when sick leave was measured in days. Those working longer shifts were at a disadvantage since a sick day would cost them 12 hours instead of 7.6. The court ruling initially favored calculating sick leave in days, but this was overruled. Now, sick leave is calculated on a pro-rata basis, considering the actual hours worked. The key takeaway is that the information shared by Chester during the session was accurate and reflects the current legal standing. The paragraph concludes with a brief mention that the speaker will address the topic of reimbursements and cents per kilometer later, emphasizing the importance of becoming familiar with these concepts.

Mindmap

Keywords

💡Sick leave

Sick leave refers to the time off from work that employees are allowed to take when they are ill. In the script, it discusses how sick leave is accrued and the implications of a high court ruling that affected how sick leave is measured for employees working varying hours.

💡Accrued

Accrued means accumulated or gathered over time. In the context of the script, it relates to how sick leave is accumulated based on the hours worked by employees, which was affected by a legal ruling.

💡High court ruling

A high court ruling is a decision made by a higher judicial authority which can set legal precedents. The script mentions a high court ruling that changed the way sick leave is calculated for employees working different hours, leading to a fairer system.

💡Pro rata

Pro rata means proportionate allocation. The script explains that sick leave is now calculated on a pro rata basis, meaning it is based on the actual hours worked rather than a fixed amount, ensuring fairness for all employees regardless of their shift lengths.

💡Shifts

Shifts refer to the set periods of work time. In the script, there is mention of a company where employees typically worked three 12-hour shifts, which led to discrepancies in how their sick leave was calculated compared to the standard 7.6-hour workday.

💡Variable

Variable means not fixed and subject to change. The script indicates that sick leave calculation is now variable, depending on the hours worked, to address the issues raised by the high court ruling.

💡Reimbursements

Reimbursements are repayments for expenses incurred by employees. The script briefly mentions reimbursements in the context of the discussion, implying that understanding such concepts is important for the employees.

💡Cents per kilometer

Cents per kilometer is a method of calculating travel expenses based on the distance traveled. The script mentions this concept in passing, indicating it as another important aspect of employee compensation.

💡7.6 hours

7.6 hours refers to the standard workday duration in some workplaces. The script uses this as a baseline for explaining how sick leave was traditionally calculated, which was found to be disadvantageous for employees working longer shifts.

💡38 hours

38 hours represents the standard workweek, calculated from five 7.6-hour workdays. The script uses this figure to discuss how sick leave was traditionally allocated and how the high court ruling necessitated a change.

Highlights

Chester provided the correct answer regarding sick leave accrual.

A high court ruling influenced the calculation of sick leave.

Standard work hours are typically 7.6 hours per day, totaling 38 hours per week.

Employees are usually entitled to 10 days of sick leave.

A company with employees working three 12-hour shifts faced an issue with sick leave calculation.

Workers on 12-hour shifts were disadvantaged when sick leave was measured in 7.6-hour days.

The case led to a reconsideration of how sick leave is calculated.

The high court ruling was eventually overruled.

Sick leave is now calculated on a pro-rata basis based on hours worked.

The new system adjusts sick leave entitlement according to actual hours worked.

Details of the pro-rata sick leave calculation will be covered in future sessions.

The update is necessary to comply with the new ruling.

Reimbursements and cents per kilometer were also discussed.

Familiarity with these concepts is essential for future understanding.

The session aimed to clarify recent changes and ensure compliance.