Backpay associated with recent Court Decision to include Bonuses in Average Leave rate calcs

Q: If we pay an Anniversary Bonus in the current pay cycle, does this Bonus payment form part of the employees OWE as well as in the employee’s AWE?

i.e. Does this bonus get included in the 4 week average AND the 12 month average and we pay whichever average is higher?      When we do include the bonus in the employee’s OWE and leave is taken within or just outside of this 4 week period, the employee’s Annual Average Leave rate sky rockets i.e significantly increased gross earnings in that 4 week period, divided by 4 weeks, versus being averaged across the 12 months.

A: To be part of OWP it is about the payment being a regular part of the week. You have stated this is an annual bonus so it would be part of AWE but not OWP.

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