UniSA is committed to ensuring the appropriateness and transparency of its operations and continually reviews business processes to ensure that they are accurate, compliant and effective and deliver on our commitments. When there is a change that directly impacts staff members we will communicate openly and in as timely a manner as possible.
If you recently received correspondence from the University regarding an additional payment for outstanding recreation leave entitlements on termination of employment, the following frequently asked questions may provide further assistance and information.
You are receiving an additional payment for outstanding recreation leave entitlements to ensure you receive the correct recreation leave entitlement due to you when you ceased employment with the University.
A detailed review was initiated by the University that identified your recreation leave was calculated up to your last completed month of service, rather than to your last day of employment. The University has recalculated your recreation leave up to your last day of employment to ensure that you receive the correct entitlement payment.
The detailed review by the University considered the period 7 February 2014 to 7 February 2020, as payments after this date were made in line with National Employment Standards (NES) requirements to calculate recreation leave up to the last day of employment.
The additional payment you receive includes a payment in recognition of income forgone as a result of you not receiving the correct payment for outstanding recreation leave entitlements when you ceased employment with UniSA. The payment is based on a compound interest rate of 6% per annum and has been calculated on an annual basis since you left the University.
As interest has been calculated annually, you will not have an interest payment included in recognition of forgone income if the period between the date when the additional recreation leave payment is made (i.e.. 26 November 2020 or 10 December 2020) and your last day of employment with UniSA is less than one (1) year . This is because an annual interest rate has been adopted and the time period to calculate interest (i.e. annually) is consistent with this approach.
Staff who are currently employed by the University will receive their additional payment for income forgone (as applicable) in their normal fortnightly salary scheduled to be paid on Thursday 26 November 2020.
Former staff, including those who continue to have a non-employment affiliation with the University, will receive their additional payment for income forgone (as applicable) in their nominated bank account on Thursday 10 December 2020. Non employment affiliations with UniSA include Adjuncts, Emeritus Professors, Visiting Academics, contractors and volunteers.
Former staff will also receive a payslip for the additional recreation leave entitlements payment which will be sent to the address provided to the University during your employment.
The University will apply the appropriate tax rate in accordance with Schedule 7 – Tax table for unused leave payments on termination of employment (Schedule 7). This is a withholding tax schedule made by the Commissioner of Taxation in accordance with the Taxation Administration Act 1953, which applies to unused annual (recreation) leave or long service leave payments included in an individual’s assessable income.
Schedule 7 also advises that Tax File Declaration numbers provided by staff will only be effective for the period that they work for the University or 12 months after the date that University make the last payment i.e. final payment on cessation of employment.
For staff who are currently employed by the University, the additional payment will be made in your fortnightly pay on Thursday 26 November 2020 and normal pay as you go income tax will be deducted from the gross amount. The additional payment will be shown on your payslip advice which is available through the myHR web portal.
For former staff, including those who continue to have a non-employment affiliation with the University, we will deduct a pay as you go (PAYG) income tax amount of 32% if their employment ceased within 12 months of the payment being made, or 47% if employment ceased more than 12 months after this date. The appropriate PAYG amount will be remitted to the Australian Taxation Office (ATO) as required, with the balance being paid to you directly.
Former staff will also receive a pay slip for this payment which will be sent to the address provided to the University during their employment. This will also be advised to the ATO and details will be available to you on ATO online services via myGov.
The additional payment for outstanding recreation leave entitlements will be paid to the nominated bank account that the University has on its records as at the date when you ceased employment. You will also receive a payslip for the additional payment which will be sent to the personal/residential address you provided to the University during your employment.
You can update your bank account or address details if they have changed since you ceased employment with the University, by contacting the University’s Payroll team on +61 8 8302 2911 or by email at payrollservices@unisa.edu.au.
If you believe that you should have received a communication about additional recreation leave related payments, but have not received a letter from the University, please contact our Payroll team on +61 8 8302 2911 or by email at payrollservices@unisa.edu.au.
If you believe there may be implications for your personal situation as a result of this additional payment, you are encouraged to seek your own financial advice. The University does not provide, or resource, this service as this is a matter for each individual.
You can find an accountant or financial adviser through professional associations including:
Alternatively, you may wish to speak to your superannuation fund provider. MoneySmart.gov.au provides some helpful information about choosing a financial adviser.
The University identified the error in the calculation and corrected it immediately. Payments made after to 7 February 2020 were made in line with National Employment Standards (NES) requirements to calculate recreation leave up to the last day of employment.
Yes, we have taken the opportunity to inform our unions (NTEU and CPSU) and the Fair Work Ombudsman of the proactive steps we have taken to resolve this matter. We have also notified the Tertiary Education and Quality Standards Agency about the review of recreation leave on cessation of employment.
If you’d like to find out more about your additional payment for outstanding recreation leave entitlements, please contact the University’s Payroll team on +61 8 8302 2911 or by email at payrollservices@unisa.edu.au.
We will endeavour to respond to your query within 2 business days.