| Purchased Leave |
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| Thursday, 11 December 2008 00:00 | |||||||||
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There are a number of flexible work options working carers could consider to help ease the burden of juggling work and care. On to consider is purchased leave whereby employees negotiate to take additional leave and have their salary averaged over the full year.
Purchased leave is an arrangement with an employer whereby the employee arranges to take additional leave over and above the normal leave entitlements. The leave is “paid” for by having your salary reduced and averaged out over the year allowing you to have a steady income stream. Purchased leave is often taken by working carers who care for children as it enables them to take the extra leave during school holidays. However it is also an option for working carers in general who may need extra leave to cope with medical appointments, hospitalisation or as a means of coping with the demands of work and care. It is advisable to draw up a written agreement with your employer when entering a purchased leave arrangement detailing how the scheme will work. The NSW Office of Industrial Relations recommends that the agreement covers issues such as:
The employee must authorise the employer to make the necessary salary deductions which are then paid to the employee during the additional leave period. What issues should you consider when thinking about applying for purchased leave? You should assess the effect a reduction in income will have on your finances on a weekly and annual basis. Having a budget for annual expenses will assist you to assess the consequences of this reduction. Consider the affect on your employer and their business. Remember they have a business to run and unexpected requests for leave may adversely affect the business. Present your case and be prepared to be flexible and to compromise; offer solutions to any problems that may arise e.g. how your work will be dealt with in your absence, and give your employer plenty of notice. It is also advisable to review the arrangement at the end of the agreement period and if necessary make any adjustments. The NSW Office of Industrial Relations advises that there is nothing in the NSW Industrial Relations Act 1996 (NSW) preventing pay averaging, however they advise checking that any purchased leave agreement does not breach relevant award provisions. For further information visit the Australian Government Job Wise website: What next? If you would like more information or to discuss the issues raised in this article you may like to try:
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