Human Capital forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Unlimited annual leave arrives in Australia

Notify me of new replies via email
HC Online | 24 Aug 2016, 10:15 AM Agree 0
The firm's founder talks about how this policy works both within the company and in Australia’s employment law framework
  • MG | 24 Aug 2016, 01:24 PM Agree 0
    How are they getting away with cashing out the 4 weeks at the end of the year? Under the NES it accrues from year to year.
    • Trent | 25 Aug 2016, 12:01 PM Agree 0
      Valid point MG.

      Subject to the firm being a Constitutional Corporation and/or domiciled in a state that referred IR powers to the Commonwealth hence covered by the Fair Work Act.

      Regardless of whether an Enterprise Agreement or Modern Award covers the employees and provides for cashing out, pursuant to Part 2-2, Division 6, sections 93 and 94 of the Fair Work Act, not less than 4 weeks Annual Leave need to remain subsequent to 'agreed' cashing out which on each occasion requires separate agreement with the employee.

      Subject to any lawful transitional provisions in any relevant Enterprise Agreement or Modern Award a policy term that departs from the statutory minimum essentially will have no effect.
  • David | 25 Aug 2016, 09:39 AM Agree 0
    This is a truly insidious and deceitful practice that come from the US where they have scrapped annual leave entitlements. In place of this process, where busy employees are unlikely to use their traditional entitlement let alone gain permission to take ‘unlimited leave’. The employee loses the ability to accrue leave and the company can release their leave liability each year without having staff take leave. This is not a good practice, it is cynical.
  • Estelle | 25 Aug 2016, 11:36 AM Agree 0
    This practice brings something else to my attention, such as how many hours are the employees working in order to be entitled to unlimited annual leave? If our maximum hours of work per week are 38 plus “reasonable additional hours” I would not consider working a 50 or 60 hour week being made up of 12 or 22 “reasonable additional hours’’. I believe the health and safety of the employee is being undermined, put at risk as well as the quality of work.
  • Helena | 18 Sep 2016, 03:35 PM Agree 0
    I don't think we should accept that it is ok for companies to expect their teams to work very hard and for very long hours, and then in effect ask or 'allow' them to take unpaid leave to recover. Companies need to estimate and resouce the work better. If the theory is that this unlimited leave can be taken for pleasure, and not recovery, great. That's not how it read.
Post a reply