New South Wales Bills Explanatory Notes

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ANNUAL HOLIDAYS AMENDMENT BILL 1997

[Act 1997 No 26]
New South Wales
Annual Holidays Amendment Bill

1997

Explanatory note

This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

Part 8 of Chapter 2 of the Industrial Relations Act 1996 protects workers'
entitlements when a business is transferred from one employer to a new
employer by providing that the continuity of a worker's contract of
employment is taken not to have been broken by the transfer of business.

Currently that Part does not apply to entitlements to annual leave under the
Annual Holidays Act 1944, with the result that, under section 4 of that Act, a
worker's employment with the former employer is, for the purposes of
determining the worker's annual leave entitlement, to be treated as terminated
on transfer of the business to the new employer and the worker's existing
annual holiday entitlements are required to be paid out instead of being
preserved.

The object of this Bill is to amend the Annual Holidays Act 1944 (and to
amend consequentially the Industrial Relations Act 1996) so that the
provisions of Part 8 of Chapter 2 of the Industrial Relations Act 1996 will
apply for the purposes of determining annual leave entitlements and a
worker's entitlement will be preserved on the transfer of business.

Annual Holidays Amendment Bill 1997 [Act 1997 No 26]
Explanatory note

Outline of provisions

Clause l sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on a day to
be proclaimed.

Clause 3 is a formal provision giving effect to the amendment to the Annual
Holidays Act 1944 set out in Schedule 1.1.

Clause 4 is a formal provision giving effect to the amendment to the
Industrial Relations Act 1996 set out in Schedule 1.2.

Schedule 1

Amendments

Schedule 1.1 inserts proposed section 4B in the Annual Holidays Act I944 so
that Part 8 of Chapter 2 of the Industrial Relations Act 1996 will apply for the
purposes of determining a worker's annual leave entitlements on the transfer
of business.

Schedule 1.2 makes a consequential amendment to the Industrial Relations
Act 1996.

Explanatory note page 2

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