Mondelez Decision is Bad for Business

Release Date: 13/09/2019
Mondelez Decision is Bad for Business
The TCCI today called on the recent Federal Court Mondelez to be appealed by the Federal Government or the company.

TCCI CEO Michael Bailey said the full implications of the Federal Court’s Mondelez decision are now becoming apparent.

“On August 21, the Full Federal Court ruled on a clarification relating to the personal leave entitlement of part time workers at Caburys, which is operated by Mondelez,” Mr Bailey said.

“Mondelez argued that shift workers, who worked three 12 hour shifts per week (36 hours total), should accrue 76 hours of personal leave per year, like all other full time employees. 
“The Federal Court, in a 2-1 majority, rejected the Mondelez interpretation stating that it was inconsistent with the wording of the National Employment Standards in the Fair Work Act (2009).

“The Court instead that all employees are entitled to 10 working days personal/carers leave per year, regardless of how many hours are worked in a particular day.

“Under this approach, Mondelez shift workers are entitled to 10 x 12 hours (120 hours) of personal/carers leave per year, significantly higher than full time employees, who would be entitled to 72 hours.

“This ruling has significant implications for all businesses in Tasmania and our nation, including:
  • Under this ruling every part time worker is entitled to leave based on their working day.
  • Under this ruling a one full day a week part time worker is entitled to ten full days of annual leave per year. Two part time workers working the same total hours per week can get very different personal leave.
  • And under this ruling workers may be able to claim compensation back to 2009, when the Act was enacted.
 What this will mean is:
  • reduction in part time employment and job sharing - and pressures on business to offer more jobs on a casual basis.
  • much more complexity in payroll, and added costs for employers trying to comply with the law.
  • an unfair situation where some workers get more than others, causing workplace friction
  • huge pressure on business to manage this ruling financially.

Mr Bailey met with the office of the Federal Attorney General in Canberra, along with representatives from every state chamber of commerce, headed by the Australian Chamber of Commerce and Industry.

“Two things must happen. The Federal Government or Mondelez must appeal this decision."

“The Federal Government must also amend the Fair Work Act to fix this technicality."

“Clearly no one intended for part-time workers to have the same leave conditions as full-time workers when the Fair Work Act was written.”

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