How is long service leave calculated if there is no ordinary time rate of pay?
An employee’s long service leave entitlement is based on his or her ordinary time rate of pay at the time the leave is taken or is to be paid out. However, in some cases (where this is permitted by the relevant Award or agreement) an employee may not have a fixed ordinary time rate of pay. For example, the employee may be paid per piece of work, per delivery, or on commission and retainer or base rate. Non-discretionary commissions and regular bonuses (for example, those based on sales targets) may be counted as part of ordinary pay if they are included in the employee’s oral or written contract of employment. Where an employee’s rate of pay varies from week to week, the employee’s rate of pay for calculating long service leave will be averaged over the preceding 12 months or five years, whichever average rate is the greater.
