Receive the latest mybusiness news
Copyright © 2020 MOMENTUMMEDIA

Confusing catch in employee leave allowance

Adam Zuchetti
Adam Zuchetti
06 February 2018 1 minute readShare
Confusion, question

Australia’s industrial relations system continues to be a source of confusion, with an unusual catch identified in employee leave allowance rules.

My Business recently reported that employers may have inadvertently been paying out sick leave when they didn’t need to because of a little-known rule around pre-scheduled medical appointments and elective surgery.

However, it turns out that nothing is as simple as it may look on face value, as one My Business reader pointed out.

“If someone has an elective surgery, they most likely aren’t eligible for sick leave on the day of the surgery BUT it is very likely that if that causes them to have time off for the recovery, then they would be eligible for sick leave.”

In other words, the very procedure for which an employee is not covered for sick leave would actually cause them to need to take sick leave.

The Fair Work Ombudsman did not respond to a request for clarification on the matter.

Elective surgery may not sound like something many business owners would need to consider, if your definition is restricted to procedures such as facelifts and and lap band surgery. However, the government’s definition of what constitutes “elective surgery” includes an enormous array of medical procedures many people would not deem to be elective at all.

Figures from the Australian Institute of Health and Welfare (AIHW) show that around 748,000 people were admitted to public hospitals in the 2016-17 financial year, and that rate has grown by around 2 per cent every year for the last five years.

The most common procedures were general surgery on abdominal organs and breast surgery – including for lump removals and biopsies – as well as orthopaedic surgery (such as knee and hip replacements) and the removal of cataracts.


Confusing catch in employee leave allowance
mybusiness logo
Adam Zuchetti
Adam Zuchetti

Adam Zuchetti is the former editor of MyBusiness and a senior freelance media professional, specialising in the fields of business, personal finance and property. In 2020, he also embarked on his own business journey – inspired in part by the entrepreneurs and founders he had met through his journalistic work – with the launch of customised pet gifting and subscription service Paws N’ All.

Leave a Comment

Latest poll

How satisfied are you with the SME measures in the federal budget?