Target Australia Pty Ltd v Shop, Distributive and Allied Employees' Association [2023] FCAFC 66

Target Australia Pty Ltd v Shop, Distributive and Allied Employees' Association [2023] FCAFC 66

The phrase 'ordinary time earnings' in cl 7.2.10 of the Target Australia Retail Agreement 2012, for the purpose of calculating annual leave pay, means the total earnings the employee would have received for rostered ordinary hours if not on leave, including any applicable penalty rates for working those hours outside the ordinary workplace span, but not overtime rates, allowances, or over-award payments unless the agreement expressly or contextually so provides. There is no basis to include over-award payments sourced solely from individual contracts.

Parties
Appellant / Cross Respondent: Target Australia Pty Ltd; Respondent / Cross Appellant: Shop, Distributive and Allied Employees' Association
Jurisdiction
Australia
Judgment Date
10 May 2023
Procedural Posture
Appeal and Cross Appeal From the Federal Court (industrial / Employment Context) / Appellate Judgment (full Court of the Federal Court of Australia)
Outcome
Both the appeal and cross-appeal dismissed
Legal Topics
Enterprise Agreements—construction, Annual Leave Entitlements, Meaning of 'ordinary Time Earnings', Paid Leave Provisions, Penalty Rates and Loadings, Over Award Payments
Industrial Law Employment Law Enterprise Agreements—construction Annual Leave Entitlements Meaning of 'ordinary Time Earnings' Paid Leave Provisions Penalty Rates and Loadings Over Award Payments

Case Brief

Summary, issues, holding and outcome

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Parties

Target Australia Pty Ltd

Appellant / Cross Respondent

Shop, Distributive and Allied Employees' Association

Respondent / Cross Appellant

Procedural Posture

Appeal and Cross Appeal From the Federal Court (industrial / Employment Context) / Appellate Judgment (full Court of the Federal Court of Australia)

Legal Issues

  1. 1 What is the meaning of 'ordinary time earnings' in cl 7.2.10 of the Target Australia Retail Agreement 2012 for annual leave pay?
  2. 2 Does 'ordinary time earnings' include penalties and loadings for ordinary hours worked outside the regular span?
  3. 3 Should over-award payments (contractual payments above the agreement) be included in 'ordinary time earnings' for annual leave calculations?

Ratio Decidendi

The phrase 'ordinary time earnings' in cl 7.2.10 of the Target Australia Retail Agreement 2012, for the purpose of calculating annual leave pay, means the total earnings the employee would have received for rostered ordinary hours if not on leave, including any applicable penalty rates for working those hours outside the ordinary workplace span, but not overtime rates, allowances, or over-award payments unless the agreement expressly or contextually so provides. There is no basis to include over-award payments sourced solely from individual contracts.

Court Disposition

Both the appeal and cross-appeal dismissed

Orders

  • The appeal is dismissed.
  • The cross-appeal is dismissed.