Frequently Asked Questions

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Leave laws

Excessive annual leave occurs when an employee on an award has accumulated at least 8 weeks (10 weeks for shift workers) of leave. After first trying a verbal negotiation, employers can now make an employee take annual leave if: 1. A written request with at least 8 weeks’ notice (and not more than 12 months) of when the leave will start is provided. 2. The direction doesn’t result in the employee retaining less than 6 weeks paid annual leave. 3. The employee is not directed to take any period of leave of less than one week. 4. The direction is not inconsistent with any leave arrangements already in place, such as agreed leave, policy or contractual provisions in the workplace.

Yes. Employees may now cash out annual leave, but they must meet the following criteria: 1. Their award/registered agreement allows it. 4 weeks of leave must remain after the cashing out 3. Cashing out is limited to a maximum of two weeks every 12 months. 4. Employers must create a separate agreement for each cash-out

Only if the employer agrees and the employee and employer sign a written agreement that specifies: 1. How much annual leave is being taken in advance 1. The day the leave will start If an employee takes leave in advance and subsequently their employment is terminated, before they’ve accrued back the leave, the employer may now deduct the amount owing from the employee’s final pay – but only if the above conditions have been met.

Yes, if an employee is paid by electronic funds transfer (EFT), they can continue to be paid as per their usual pay cycle during periods of leave. For example an employee, Steve, is on one of the 112 awards and is taking three weeks annual leave. Steve’s employer is not obligated to pay her upfront/ in-advance, before his leave begins – as long as he normally receives his pay via EFT and will continue to do so while on leave.

This must be managed in accordance with the award relevant to the employee and industry in question, for example: Many awards states that employer needs to provide at least 4 weeks notice and if an employee doesn’t have enough leave to cover the shutdown, they can agree with the employer to take one of these options: 1. Annual leave in advance 2. Unpaid leave If an employee doesn’t agree to either, they must be paid at the ordinary rate for the period – they can’t be forced to take unpaid leave.