Taking annual leave under the national system

Once accrued, annual leave may be taken at a time and for a period agreed between the employee and employer. An employer must not unreasonably refuse an employee’s request to take leave.

An employer may reasonably require or direct an employee to take a period of annual leave at a designated time or in certain circumstances. Many awards and enterprise agreements expressly provide that an employer may direct an employee to take annual leave if they have accrued an excessive balance. However that is usually subject to the employer having first tried to reach agreement with the employee on how to reduce the excessive leave. An employer may direct an award and agreement-free employee to take any excessive annual leave provided the request is reasonable and the employee retains a minimum balance.

Many modern awards provide for the employee to take leave in advance of accrual, with the agreement of the employer. The employer may be able to recover annual leave paid in advance from an employee’s termination payments if the employment ends before the employee accrues an equivalent amount of leave.

See Taking annual leave under the national system.