Sick Leave & Termination of Employment – Q & A
Q:
Can you terminate the employment of an employee while that employee is on sick leave?
A:
No, it is unlawful to terminate an employee’s employment while they are on sick leave of up to 3 months. You will be in breach of the Fair Work Act and Anti-Discrimination Legislation.
Q:
Is the employer required to pay a terminating employee their personal/carers (sick) leave accrued to date?
A:
No, personal/carers (sick) leave does not get paid out on termination of employment.
Q:
What happens to personal/carers leave on transmission of business?
A:
The purchaser of the business must take over the leave balances for all personal/carers leave of each employee going over with the business.
The purchaser should ensure that the sale contract contains a reduction for taking on the personal/carers balances.
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