Skene v WorkPac Pty Ltd (No.2)

Skene v WorkPac Pty Ltd (No.2) concerned a dispute between Ms Skene and WorkPac Pty Ltd regarding the assessment of compensation for unpaid annual leave entitlements upon the termination of Ms Skene's employment. The matter was heard by Judge Jarrett in the Federal Court of Australia.

The primary legal issues before the Court were how to assess the "base rate of pay" for the purpose of calculating accrued annual leave entitlements, and whether the "ordinary hours of work" were relevant to this calculation. The Court was also required to consider the implications of the parties' intention for the employment to be casual when assessing penalties for the failure to pay these entitlements.

Judge Jarrett determined that the "base rate of pay" for the purpose of calculating annual leave entitlements should be determined by reference to the employee's actual earnings, rather than a hypothetical rate that might apply to a permanent employee. The Court reasoned that the purpose of annual leave is to provide a paid break from work, and therefore the calculation should reflect the employee's actual remuneration. The Court also found that the concept of "ordinary hours of work" was not applicable to casual employees for the purpose of calculating accrued annual leave, as casual employees do not accrue such leave in the same way as permanent employees.

The Court ordered WorkPac Pty Ltd to pay Ms Skene compensation for her accrued annual leave entitlements, calculated on the basis of her actual earnings.