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Should employees be trusted with unlimited annual leave?

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HC Online | 07 Nov 2016, 10:53 AM Agree 0
We talk to three experts about whether the time is ripe to offer unlimited annual leave
  • Dave | 07 Nov 2016, 03:19 PM Agree 0
    Where this policy has been adopted in the USA, the previous accrual of leave has been 'quarantined' and no further accruals are made. Staff who have been in their organization for long periods of time will therefore no longer accrue leave. Leave is only granted where staff can be relieved, in busy offices it is hard to believe that those busy staff will be allowed to take time off, so they will not benefit.

    In Australia, staff will still be entitled to accrue 4 weeks leave per year, therefore any 'unlimited' leave will be accessible above this. Is it intended that staff will use up their accrued leave first before being entitled to the 'unlimited' leave.
    Perhaps the adoption of a leave purchase scheme is more applicable in an Australian context as this enables both the company and the individual to control their leave.
  • Peter | 07 Nov 2016, 04:59 PM Agree 0
    Dave is right in his comment above. In the US unlimited leave is more workable because for the organisation offering it, their people no longer accrue leave. This means the organisation does not have unused leave sitting as a liability on their books and it also means there is no leave payout when a person finishes employment. Likewise in much of the US there are no sick leave entitlements. I'm not sure the Fair Work Act would allow organisations to bargain those items away to make a similar situation work here.
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