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Leave and the Law: Key Questions for Employers in Perth

Maintaining a healthy work-life balance is a priority for employees, and annual leave is a crucial entitlement they value. As an employer, you may have questions regarding whether all employees are entitled to it, when it is appropriate to reject leave requests, and if you can direct employees to take leave at specific times.

In Australia, annual leave entitlements are regulated by the National Employment Standards (NES), along with individual employment contracts and enterprise agreements. It is vital for employers to be clear on their obligations and rights when handling annual leave requests to ensure compliance and fairness.

Who is Entitled to Annual Leave and How is It Calculated?

Under the NES, full-time employees in Australia are entitled to 4 weeks (20 days) of paid annual leave per year. Part-time employees also accrue 4 weeks of annual leave, but this is calculated on a pro-rata basis according to the hours they work. Casual employees, however, are not entitled to accrue annual leave.

Can Employers Reject an Annual Leave Request?

According to Andrew Jewell, Principal at Jewell Hancock Employment Lawyers, employees can apply for annual leave as long as they have accrued it. Employers can only reject a leave request on reasonable grounds, such as high seasonal demand or essential staffing needs. However, Jewell warns that refusing leave can harm employee morale, so it is important to approach these decisions carefully.

There is no general legal requirement for employees to provide a specific amount of notice when requesting leave, but this can be outlined in an award, enterprise agreement, or company policy. The amount of notice an employee provides can influence whether an employer’s refusal is considered reasonable.

Can Employers Require Employees to Take Annual Leave?

Employees may choose to accumulate their annual leave for future use, but excessive untaken leave can become a liability for employers. In certain situations, such as during a Christmas shutdown or when an employee has accrued excessive leave, employers may direct staff to take time off. However, employers must ensure compliance with any applicable awards or agreements when making such requests.

What Happens to Untaken Annual Leave?

If an employee leaves the organisation, whether voluntarily or due to redundancy or dismissal, employers are obligated to pay out any unused annual leave. "Regardless of the reason for termination, untaken leave must be paid out," Jewell explains.

Can Employers Dismiss an Employee While They Are on Annual Leave?

While it is not illegal to dismiss an employee during their annual leave, it is unlawful to dismiss them because they are on leave. Furthermore, such a dismissal could be considered procedurally unfair, according to Jewell.

Employers need to understand their legal responsibilities around annual leave to ensure a compliant and fair work environment. Full-time and part-time employees are entitled to annual leave, and leave requests can only be refused on reasonable grounds. Additionally, any accrued leave must be paid out when an employee leaves.

Professional HR Support

Navigating the complexities of leave entitlements and employer obligations can be challenging. For expert guidance on annual leave management or broader HR concerns, it is advisable to seek professional HR advice.