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Remediation program
QLeave is undertaking a program of work to enhance the operational and functional performance of our long service leave schemes.
Through this work, we have proactively identified an error relating to the annual rate of pay calculation collected through quarterly employer returns, for the community services industry scheme.
QLeave apologises for the error and appreciates that this may initially lead to some additional administration.
It is essential we correct the annual rate of pay to avoid any impact on workers’ long service leave entitlements.
Keep reading for more information about the program, which will take place over four stages.
About the program
What is the error?
Previously QLeave advised employers to calculate the annual rate of pay based on a worker’s hourly rate (including any amounts outlined under ordinary wages).
However, under legislation, the annual rate of pay must be calculated based on the rate of pay for the worker’s classification level and pay point outlined in their industrial instrument.
Please note:
Annual rate of pay is based on your workers' minimum full-time hours, not on the hours they worked, even if they're part-time or casual. This means it's:
- different to gross ordinary wages and not based on your worker's actual earnings AND
- used to calculate the value of reimbursement claims and doesn't impact the quarterly levy.
The gross ordinary wages and the annual rate of pay provide a complete picture of the worker's moderated wages, reflecting both the minimum wage for their award and their actual gross earnings.
You can find more information about the new annual rate of pay calculation here.
How are we fixing it?
From 5 August 2024, you will need to calculate the correct annual rate of pay for reimbursement claims.
If you have previously claimed reimbursement from QLeave, we will be contacting you to obtain corrected historical information.
For the return due 14 October, you will need to provide the annual rate of pay for all workers based on the new guidance.
Where are we up to?
What have we completed?
- On 5 August we commenced stage 1, which informed all community services employers about the error and the new guidance for calculating annual rate of pay.
- Stage 2 was about ensuring we processed all new claims correctly. We collected current and historical annual rate of pay data from employers. To do this, we engaged Deloitte and used the ClaimsView portal to collect the corrected information and process claims.
- In Stage 3 on 9 September, we started emailing employers who had submitted a claim before 5 August 2024 to register with ClaimsView and provide the annual rate of pay and industrial instrument information for each worker they had made a claim for.
- Stage 4 occurred at the time of the July-September returns, which were due on 14 October 2024. All employers provided the annual rate of pay using the new guidance when they submitted their return. This ensured the data is correct from that point forward.
What is next?
We're coming to the end of this program of work. You may receive an email from ClaimsView to finalise your remediation work or to provide correct annual rate of pay and industrial instrument information for your workers, so your future reimbursement claims are calculated correctly.
We understand that this may initially lead to additional administration for employers and we sincerely apologise to industry for this error. It is essential we correct the annual rate of pay to avoid any impact on workers’ long service leave entitlements.