BlandsLaw - Blog posts from Annual Leave
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Changes to modern award provisions for annual leave

As part of their their four- yearly review of modern awards, the Fair Work Commission (FWC) has made changes to a number of awards for annual leave entitlements and the way that annual leave is to be taken. The changes are designed to provide employers with flexibility in managing leave arrangements and prevent cash flow issues with excessive accumulated annual leave. The changes specifically deal with managing excessive accrual of annual leave, payment of annual leave, cashing out annual leave and taking annual leave in advance. Most of the changes took effect as of 29 July 2016.

Excessive Annual Leave

Excessive Annual leave is defined as more than 8 weeks' paid annual leave (10 weeks for shift workers). The new provisions will allow employers to direct their employees with excessive annual leave to take leave, provided that:

  • Employers must request a meeting with employees beforehand and try to reach an agreement on reduce or eliminate excessive accrual of annual leave.
  • The remaining annual leave entitlement is not less than 6
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While there is no general entitlement to unpaid leave under the Fair Work Act 2009, there are some provisions that deal with the question of when unpaid leave can be taken. In other cases it is a matter for agreement between the employer and employee.

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Getting It Right - Employee Leave Entitlements on entry, exit and during the course of employment

Welcome to our ‘Getting It Right’ series. This is the first of our series of articles addressing employee leave and their entitlements upon commencing employment, during employment, resignation and termination.

This week we are looking at annual leave and further in the series, we will be covering personal leave, parental leave, long service leave, leave without pay and other special leave.

“Getting It Right” means being aware of an employee’s leave entitlements, knowing how and when such leave can be taken and what is payable when leave is taken or the employment relationship comes to an end. This paper aims to clarify and consolidate your thoughts on annual leave.

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