Take your leave and spend it, workers told

[The Old Dark Navy's]

It's the accrued stuff you can buy out.

So if you have accrued 8 weeks, you can get 8 weeks pay as a trade off. Most employers would say yes, and you'd have 8 weeks more disposable income.

Whether you chose to spend it on an overseas holiday, paid off some debt etc, which doesn't help the economy, or spend it on Aussie booze, tim tams etc, which boosts the economy, is a matter of choice.

If it were me, I'd let it accrue.

Well that would be better but this:

Tourism Minister Martin Ferguson said Tourism Australia would convene a round-table meeting with peak employer groups during the week to launch a campaign to "encourage people to organise their lives at work and at home to actually have a break, and to have a break here in Australia'',

This made me think they want us to take the leave not just get paid out for the leave.

I would sacrifice the odd week or so for a cash pay out. I really don't think they mean this as they wouldn't budget for paying you 56 weeks wages in one year, unless of course they had to bring someone in to replace you while you were on leave. In situations where they simply get others to cover for you, they would want you to go away and get 4 weeks leave for a total of 52 weeks pay per year.

Plenty of people would just let their leave accrue, stay at work and take the extra month's pay per year for free if you could simply get a payout. Most workplaces won't let you accrue too many weeks anyway so letting it build for a massive payout at the end isn't feasible in most cases.

 

[Frodo]

Well that would be better but this:



This made me think they want us to take the leave not just get paid out for the leave.

I would sacrifice the odd week or so for a cash pay out. I really don't think they mean this as they wouldn't budget for paying you 56 weeks wages in one year, unless of course they had to bring someone in to replace you while you were on leave. In situations where they simply get others to cover for you, they would want you to go away and get 4 weeks leave for a total of 52 weeks pay per year.

Plenty of people would just let their leave accrue, stay at work and take the extra month's pay per year for free if you could simply get a payout. Most workplaces won't let you accrue too many weeks anyway so letting it build for a massive payout at the end isn't feasible in most cases.

We can't gereralise. Each business is individual.

My businesses have tanked since August. Christmas break is 19 Dec to 12 Jan. Normally a week earlier.

Now that takes an extra week out of 2009 leave, at a flat time.

It's your choice on pay outs.

 

[Frodo]

I don't understand how, in times of low credit availability, paying off personal debt would be seen as having no benefit for the economy. It increases your disposable income and makes more money available to lend to business at cheaper rates.

You are so correct.

But unemployment is the target, it MUST be protected, or the economy fails.

It's like building houses, you have to protect the foundation first.

 

[Monkey Worshipper]

If it were me, I'd let it accrue.

On the odd occassion I needed some extra money so I 'cashed 2 weeks out'. Was great, but in a better financial climate. I can't imagine too many companies doing it today.

Your comment above, let it Acrrue.

Take to the extreme: Worker at a small business doesn't take a days A/L for 10 years. Accrues 40 weeks, he's saving it for a rainy day. Business goes under... worker loses his whole 40 weeks and doesn't get a cent. In the pecking order of who gets what, ATO No#1, Banks are up there, there's creditors, the worker is last.

 

[Aquamarinejewel]

I have always accrued my leave and then take it all in one hit every two years or so and take off on an overseas holiday. My last job there was never any pressure to use up leave so it used to mount up into a tidy sum very quickly, I remember when I resigned from that position I had some 34 weeks owing after having been there 21 years.

In my current job it is the same, I have been there 2 years and have 8 weeks up my sleeve. No pressure from the employer for me to take holidays to reduce the leave.

 

[Giants FC]

Why do they think that if you take your leave, you are going to spend the money in Australia and boost the economy? Most people get the same amount of wages plus 17% leave loading. If you are public servant you just get your leave loading at xmas regardless of when you took your leave. You still have to pay rent, buy food, pay the electricity etc. It's not bloody free money while all your bills go on holiday too.

Interesting that the public service pays leave loading even if leave isn't taken. While most enterprise bargaining agreements and AWAs leave out leave loading altogether - under my EBA, I don't get leave loading.
Leave loading is meant to exist as an incentive for people to take their leave - a recognition not only of allowances etc that aren't being earned while on leave, but also of the cost of taking holidays. Without leave loading, annual leave is certainly more likely to accumulate as there is a financial disincentive to take leave.

As I mentioned in another thread on another board in BigFooty a couple of weeks ago, a person involved in the payroll process either as a line manager or doing the payroll entry and who never takes leave on a pay day is to be thoroughly scrutinised by any competent auditor - are there phantom employees that they are signing for?

 

[Frodo]

Leave loading was put in place to enable those who worked regular overtime to collect a similar mount when on leave.

It is ridiculous that those who are in jobs where overtime does not exist, still get leave loading.