The government will seek to overturn a landmark court decision which has changed the way personal leave is calculated.

Industrial Relations Minister Christian Porter says the government will seek an appeal in the High Court because the ruling had caused confusion when calculating sick leave.

The ruling against manufacturer Mondelez found the Fair Work Act’s minimum 10 days’ paid personal leave should be calculated at the ordinary hours that a person works per day rather than just a set 7.6 hours.

Head of National Workplace Relations Policy at Australian Industry Group Stephen Smith tells John Stanley it could cost businesses more than $2 billion a year.

“On this interpretation, a part-time employee that only works one day a week would be entitled to ten days of sick leave.

“What is the meaning of ten days? That is the key issue.”

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