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Paid Family and Domestic Violence Leave
The Fair Work Ombudsman and the ATO have announced late changes relating to the payslip and Single Touch Payroll (STP) reporting requirements for Paid Family and Domestic Violence Leave (PFDVL) that take effect as of 04/02/2023. This page has been updated in line with the revised requirements.
A transition period has been granted until 04/06/2023 for employers who have already put in place processes to cater for reporting PFDVL as Paid Leave - Other on payslips and in Single Touch Payroll (STP) reporting and require time to change to the new requirements.
Paid Family and Domestic Violence Leave (PFDVL) has now been legislated as part of the Fair Work Amendment (Paid Family and Domestic Violence Leave) Bill 2022 bill. It allows employees to take ten days of paid leave if they are experiencing family and domestic violence.
The following are the key details of PFDVL:
it becomes effective on 1 February 2023 for businesses with 15 or more employees and 1 August 2023 for businesses with fewer than 15 employees
it applies to full-time, part-time and casual employees
the entitlement is for ten days, up-front paid leave per service year (not pro-rated for part-time and casual employees)
the unused balance of entitlement does not carry over from one service year to the next
when taken, it is paid at the same rate that the employee would have been paid had they worked on that day (or part day if part day leave is taken)
if an employee experience an episode of family or domestic violence while on personal/carer’s leave or while on annual leave, PFDVL will take precedence over the other form of paid leave
the balance of unused entitlement cannot be paid out during service or on termination of employment
a payee’s payslip must not show the balance of the leave and must not show any indication that a payment corresponds to PFDVL (for more information, see Payslip & Reporting Requirements below).
Payslip & Reporting Requirements
Payslips must not show the outstanding balance of PFDVL or can they identify that a payment corresponded to PFDVL having been taken.
New requirements that take effect as of 04/02/2023 require payslips to resemble, as closely as possible, what a payee’s payslip would have shown had the payee not been absent from work. For example, if a payee was absent for the duration of a shift where the payee was scheduled to work 8 hours ordinary time and 2 hours of overtime, the payslip should show that the payee was paid 8 hours ordinary time and 2 hours overtime at the rates that would have normally applied respectively.
An employer can show PFDVL as another type of paid leave on the payslip (for example: Paid Leave - Other) if a payee requests it. However, this is not practical since it would require the leave to be managed differently for individual payees.
In STP reporting, payments for PFDVL taken must likewise be reported as if the payee had worked. Therefore, using the example above, the payment would be required to be reported in STP as 8 hours gross and 2 hours overtime.
FastTrack Recommendations for Managing PFDVL
FastTrack recommend that the process that should be followed when a payee takes PFDVL is:
The payee’s timesheet for each day or part day of leave taken should be keyed as if the payee had worked the time that was taken as a paid absence. Therefore, when the timesheet is paid, as per the legislated requirements the following will apply:
the payee will be paid as if they had worked
the payee’s payslip will give the appearance that the payee worked the entire duration of the paid absence
STP reporting will reflect the payments actually processed through payroll, which will be as if the payee had worked, and therefore the payee’s income statement will not show any indication that the payee took a paid absence.
If a payee does take PFDVL, the number of days or part days taken should be manually recorded to ensure that the payee does not exceed the 10 paid days in a single service year.
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Given that timesheets may require approval by one or more client contacts, it is important to consider a process whereby you will manage instances where a payee is absent on PFDVL but their timesheet indicates otherwise, noting the discretion is required regarding the reason for the payee’s absence.
Further Information
You can find more information about PFDVL by following the links below:
New paid family and domestic violence leave - Fair Work Ombudsman
Fair Work Amendment (Paid Family and Domestic Violence Leave) Bill 2022
Fair Work Amendment (Paid Family and Domestic Violence Leave) Bill 2022 - Explanatory Memorandum
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