A relatively small proportion of employers are providing options on holiday leave entitlements for their employees, according to recent research from the Australian Centre for Industrial Relations Research and Training (acirrt)
A relatively small proportion of employers are providing options on holiday leave entitlements for their employees, according to recent research from the Australian Centre for Industrial Relations Research and Training (acirrt).
Its quarterly ADAM (Agreements Database and Monitor) report found that only 12 per cent of currently operating agreements provided for paid annual leave over the statutory four weeks. It also found that 4.5 per cent of agreements provide a leave loading of over 20 per cent, in contrast to the standard 17.5 per cent.
In Australia four weeks annual holiday leave has been the standard provision for full time employees with more than one years’ service since 1974. Australia’s four weeks annual leave entitlement is relatively generous compared to other English speaking countries, but less than what is common in many European industrialised economies.
The report identified a range of innovative flexible leave arrangements in current enterprise agreements. Just over 7 per cent of current agreements allow for the cashing out of annual leave, where employees receive their leave as additional pay rather than days off, while 3.8 per cent of agreements allow for leave pooling provisions, which allow employees to combine leave entitlements such as annual, sick and family leave.
“While still relatively few in number the appearance of a range of innovative leave provisions identified in enterprise agreements provides employees with greater choice on when and how and even how much holiday leave they might take,” said acirrt director Ron Callus.
“While these options may be a positive development there may also be some negative consequences for workers who, for example, prefer the additional money to taking holidays, ie cashing out.”
He said the consequences of working long hours over a sustained period without time for rest and recovery may lead to significant adverse health effects over the years.
“Similarly, there is a danger that workers who choose to pool their sick leave entitlements to take additional holidays may find themselves with no leave credit if they do become seriously ill.”
