House of Assembly Fifty-First Parliament, Third Session (51-3) 51 3 Parliament of South Australia House of Assembly published Bills Long Service Leave (Unpaid Leave) Amendment Bill LONG SERVICE LEAVE (UNPAID LEAVE) AMENDMENT BILL Second Reading Second Reading Adjourned debate on second reading. (Continued from 24 September 2008. Page 247.) Dr McFETRIDGE House of Assembly Morphett Dr McFETRIDGE (Morphett) (12:00): As the member for Fisher quite rightly points out, members of parliament do not get this, but we will not go down that path right now. This is a relatively simple bill, and the opposition will be supporting it. I will not keep the house long. The bill was introduced into the house on 24 September by minister Caica. The history of long service legislation, going back to 1957, was outlined in the minister's second reading explanation. This bill seeks to remove the ambiguity within the current act to ensure a consistent approach to the treatment of paid and unpaid leave when calculating long service leave entitlements. It seeks to clarify the calculation of long service leave entitlements. The bill has gone through a consultation process, and stakeholders have been consulted, and they have given in-principle support and have proposed some technical amendments, which have been included in the final bill. The consultation has occurred with the Industrial Relations Advisory Committee (IRAC), a statutory committee established under the Fair Work Act 1994. In addition to the Minister for Industrial Relations, it consists of senior representatives from SafeWork SA; SA Unions; Business SA; the South Australian Wine Industry Association; the Engineering Employers Association; the Master Builders Association; Motor Trade Association; the SA Farmers Federation; the Shop and Distributive Allied Employees Association; the AWU; the ASU; the PSA; the Liquor, Hospitality and Miscellaneous Union; the Transport Workers Union; the Public Sector Workforce Division (Department of the Premier and Cabinet); the Crown Solicitor's Office; employer and employee associations not represented on IRAC; the Construction Industry Long Service Leave Board; and the Registered Agents industrial relations organisation. All of those consultants have supported the objectives of the bill, and most are supportive of the proposed amendment. The key changes proposed in the bill are: unpaid leave is disregarded from the averaging provisions; the averaging period would now be taken to be the previous 12 months or three years of actual service (whichever the case may be), after any unpaid leave is disregarded; the inclusion of weeks when a worker was on paid leave, when averaging weekly hours for workers for whom the three-year averaging period applies; and clarification that only whole weeks of unpaid leave are to be disregarded from the averaging calculations. With those few words, I indicate that the opposition supports the bill. Mr GRIFFITHS House of Assembly Goyder Mr GRIFFITHS (Goyder) (12:03): I am not sure what the work history is for other people in this chamber, but I used to do payroll for a while, so I thought I might comment on this. The Hon. P. Caica interjecting: Mr GRIFFITHS House of Assembly Mr GRIFFITHS: Hopefully, everyone got the right amount. While it might seem a relatively minor issue, it is important that you get payroll calculations right. Given that there is an increasing trend now for people to take unpaid leave for a variety of reasons, be it for overseas travel, holidays or maternity leave (if they work for employers who do not pay for that privilege), it is important that we get the legislation right to ensure that, when people are paid out on termination, we are confident that the calculations are correct and truly reflect the period these people have actually worked. I have had some issues in the past, where I have sat down diligently and someone has come to me and said that they have decided to leave that workplace, but there have been gaps in their continuous employment. You try to take those into account, but then you need to ensure that the records you have kept are very accurate and reflect the times when they have taken leave without pay to ensure that you get it right. Payroll, as with most administrative responsibilities, relies upon the accuracy of the records and, if you get that right, it makes everything easier in the long run. I am quite pleased that the government has chosen to introduce this bill, and I am especially pleased that it has consulted very widely on it and, no doubt, each of those industries and associations that have been asked for their opinion has indicated its support. It is a step forward. It ensures that the rights of the employer and the employee are protected and that payment calculations are going to be correct and that there will be reason for debate. Quite often, when a person leaves their employment, they have a perception of what their final payment might be. Then, when it comes to a point when there is a dispute about how it is calculated, it can very quickly sour a good and positive relationship that might have existed for many years. If the final payment calculation is incorrect, or perceived to be incorrect, it does take a lot to talk through it and resolve the issue. So, any regulation or legislation that actually ensures that everybody can understand the process—so that everybody understands that when they have had time off work that will not be included in their final payment—is a step forward. I certainly concur with the shadow minister's comments on this matter. I know that he presented a very detailed briefing paper to Liberal Party members. I am not sure if any other members propose to speak on this measure, but it was clear to us that this legislation is a step forward, and I am pleased to confirm my personal support also. The Hon. P. CAICA House of Assembly Colton Minister for Industrial Relations Minister for Employment, Training and Further Education Minister for Science and Information Economy Minister for Youth Minister for Volunteers The Hon. P. CAICA (Colton—Minister for Industrial Relations, Minister for Employment, Training and Further Education, Minister for Science and Information Economy, Minister for Youth, Minister for Volunteers) (12:05): I would like to thank members of the opposition for their contributions on this bill. I am grateful for their support, and I am also grateful that their contributions were brief! I would also like to acknowledge the variety of organisations that were mentioned by the member for Morphett as being involved in the consultation process and, of course, all those members who are included in that group from the Industrial Relations Advisory Committee as mentioned by both speakers and in my second reading explanation. This measure is about bringing much-needed clarity to the calculation of long service leave entitlements. I do not intend to go through that again: it was well covered by both the members for Morphett and Goyder in their contributions. I thank the opposition for working very much hand in glove with the government in relation to the passage of this bill. Bill read a second time. Third Reading Third Reading The Hon. P. CAICA House of Assembly Colton Minister for Industrial Relations Minister for Employment, Training and Further Education Minister for Science and Information Economy Minister for Youth Minister for Volunteers The Hon. P. CAICA (Colton—Minister for Industrial Relations, Minister for Employment, Training and Further Education, Minister for Science and Information Economy, Minister for Youth, Minister for Volunteers) (12:07): I move: That this bill be now read a third time. Mr Venning interjecting: The Hon. P. CAICA House of Assembly The Hon. P. CAICA: I acknowledge and thank the member for Schubert for his contribution in this matter as well. He does care for workers and their entitlements, and that is a reflection indeed on the honourable member. Bill read a third time and passed.