Annual Leave: Essential Insights for Work-Life Balance

Entitlement and Calculation:

Are all workers entitled to it? Annual leave entitlements are governed by specific regulations that depend on factors like employment contracts, enterprise agreements, and employment law.

As outlined in the National Employment Standards, annual leave entitlements differ depending on the nature of employment. Full-time employees in Australia accrue 4 weeks of annual leave per year, equivalent to 20 days. Part-time employees are also entitled to 4 weeks of annual leave per year, accrued at their pro-rata rate, while casual employees don’t accrue any annual leave.

Requesting Annual Leave:

If an employee has accrued annual leave, they’re entitled to apply for it, even if they haven’t built up more than 4 weeks. You can only reject the request on reasonable grounds. Employers should be cautious in refusing annual leave, as it can negatively impact staff morale. Some notice requirements may be outlined in an award, enterprise agreement, or employer policy, although there are no general requirements for employees to give notice for annual leave.

Forcing Employees to Take Annual Leave:

Annual leave accrues indefinitely and doesn’t expire. There are two situations where you can direct employees to take leave – during a Christmas shutdown period or where an employee has accrued excessive leave. If employees are covered by an enterprise award or agreement, check the provisions about directing them to take excess annual leave.

Untaken Annual Leave:

Whether an employee leaves your organisation voluntarily or due to dismissal, you have an obligation to pay their unused annual leave. Accrued and untaken annual leave must be paid to the employee upon the cessation of their employment, regardless of the reason for the cessation.

Dismissal During Annual Leave:

While it’s not strictly illegal to dismiss an employee while they’re on annual leave, it is unlawful to dismiss them because they take annual leave. If an employee is on annual leave, a dismissal would likely be procedurally unfair. Annual leave is vital for work-life balance and a key driver for employees, so understanding your legal obligations is crucial. Full-time and part-time workers can only have leave requests rejected on limited reasonable grounds. If an employee leaves your company for any reason, you must pay them for the leave they’ve earned.

For more information, contact a Human Resources Consultant in the Explore Potential Team