How to Calculate Pro-Rata & Legality Regarding Payout of Pro-Rata

Empharand on 09/05/2018 - 22:20
Last edited 09/05/2018 - 22:21

Hi all,

To keep it brief, I'm looking at leaving my current job of 7.5 years full-time employment. I believe after 6 years you start accumulating pro-rata which is paid out once you finish working for said employer.

I have had a look online but I can't find a solid way to calculate pro-rata (there are a few UK based sites, and a few other sites which I have tried but the end result isn't correct)

Also, what are the legalities regarding employers paying out pro-rata? Reason I ask is because almost everyone that leaves the company I work for either gets fired or leaves on really bad terms eg. major argument with the powers, in one particular case, my ex-colleague who had worked there for approx 8 years (give or take) had an anxiety attack before leaving the company due to 'medical reasons' - I was a very good friend of said person and she never had anxiety issues.
I don't need the expertise of a lawyer I just need opinions and/or thoughts.

Thank you.

Education & Work

Comments

  • bobbified on 09/05/2018 - 22:43

    I believe after 6 years you start accumulating pro-rata which is paid out once you finish working for said employer.

    You might need to clarify your post a little more.

    Are you working in Australia or UK?

    What in the world is "pro-rata"? Never heard of it here in Australia, but what you're describing sounds a bit like Long Service Leave, although Long Service Leave is leave that gets paid out if you've accrued and haven't taken it.

  • nocure on 09/05/2018 - 22:55
    +2

    Long service starts at 7 years (only paid out if you leave) and can be taken a paid leave once you reach 10 years. CMIIW YMMV

    • Almost Banned on 09/05/2018 - 23:32
      +2

      Yeah - I assume they are talking LSL.
      Seems to be based in Melbourne.
      If you are on a Federal award or agreement - that will apply. Otherwise the state act provides for LSL
      It starts accruing at 7 years and can be taken at 10 IIRC.
      There's an online calculator you can use here: http://www.business.vic.gov.au/calculatelongserviceleave

  • SmiTTy on 10/05/2018 - 01:12

    Assuming by pro rata OP means LSL

    I thought u can't take out lsl until you hit 10 years. If you quit you can't take it with you unless your past 10 years. Only exception is if you're made redundant, you can get it paid out prorata

    • bobbified on 10/05/2018 - 06:35
      +2

      The LSL rules vary state to state. What you've said sounds like NSW's rules, where it starts accruing at 5 years.

      • SmiTTy on 10/05/2018 - 09:18

        Ah learnt something new today
        (and yes NSW)

        • aragornelessar on 10/05/2018 - 16:15

          That piqued my interest so I looked into it a bit more - seems other option is illness

          Under some circumstances a worker who has completed five years (but less than ten years) of service may be entitled to a long service pro-rata payment if he or she:

          - resigns as a result of illness, incapacity, domestic or other pressing necessity; or *
          *- is dismissed for any reason except serious and wilful misconduct; or
          - dies.

          Or die. The first two probably more appealing though.

          http://www.industrialrelations.nsw.gov.au/oirwww/FAQs.page

  • boostpak on 10/05/2018 - 09:04

    Using the Vic long service leave calculator the rules are as follows:

    "Please note that this calculator is provided as part of a service by Small Business Victoria. The calculations provide a guide and should be verified by an independent party (e.g. your payroll office, your union or your legal advisor).

    All calculations are based on:

    13 weeks leave for 15 years of continuous employment
    Eight and two thirds at 10 years
    Four and one-third weeks leave for five years."

    Anywhere in-between, it is calculated accordingly.

    I'm not sure where everyone is getting "7 years" from.

  • boostpak on 10/05/2018 - 09:14

    you'll get about 5.9 weeks of pay if you leave basically to answer your question

  • [Deactivated] on 12/06/2018 - 10:42

    It depends on the state you're in. Bad news, in NSW and QLD, it's damn near impossible to get any LSL paid out unless you have been with the employer 10 years.

    Other states are more generous. SA is the place to be employed when you quit…

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