Annual leave does not accrue during employer lock out
15 May 2018 - Lexis Nexis

A Full Bench of the Fair Work Commission has affirmed that during an employer lockout employees do not accrue annual leave pursuant to s 87 of the Fair Work Act 2009 (Cth) (FW Act).

The Full Bench arrived at this conclusion on the basis that a lockout period is an ‘unpaid authorised absence’ and therefore does not count as service within the meaning of s 22 of the FW Act.

The Full Bench said that this interpretation of s 22 of the FW Act is consistent with s 416 of the FW Act, which provides employers with the discretion to refuse to pay their employees for periods of employer response action (ie lockout).

Read the full text of the Commission’s decision here: CEPU; CFMEU v Carter Holt Harvey Woodproducts Australia Pty Limited [2018] FWCFB 2731.

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