Annual Leave Policy
An Annual Leave Policy outlines the annual leave entitlements and obligations in place for your employees.
Last updated January 13, 2025
Suitable for Australia
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Frequently asked questions
Use the Annual Leave Policy if:
- You want to provide clarity on who is entitled to annual leave, and the process for making a request;
- You need to ensure that all employees are aware that any annual leave requests are subject to notice requirements and may be declined where appropriate;
- You want to clarify how payroll is processed for employees during annual leave to minimise the risk of related disputes; and
- You want to protect your Company by ensuring that employees are aware of your right to direct them to take annual leave under certain circumstances.
What does this Annual Leave Policy cover?
- Eligibility requirements for annual leave;
- Procedure for any annual leave requests;
- Company liability for any unauthorised leave taken by employees;
- Company directions to take annual leave during an annual shut down, or where an employee has accrued excessive leave; and
- Payroll procedures where employees have taken annual leave.
Further information:
- Can an employer refuse annual leave?
- What is leave loading?
- Can employees be forced to take annual leave?
- Employee Handbook
- Can employees be made to take leave in the Christmas period?
- Annual Leave Application Form
- When Can Employees Cash Out Their Annual Leave?
- Do Casual Employees Get Annual Leave?
- Can an Employer Refuse Annual Leave? (2022 Update)
- Is Annual Leave Loading Payable on Termination of Employment
- What to Do if Employees Have Too Much Leave
View Sample Annual Leave Policy
The Legal Risk Score of a Annual Leave Policy Template is Low
Our legal team have marked this document as low risk considering:
- There is a risk associated with making travel or other commitments before obtaining leave approval, as the company explicitly states it is not responsible for any costs incurred if leave is not approved.
- Employees may be directed to take annual leave during company shutdowns or if their accrued leave is considered excessive, which could disrupt personal plans or preferences.
- The document lacks clarity on how much notice the company will provide before directing an employee to take leave, which could lead to uncertainty and short-notice disruptions for employees.
Articles about Annual Leave Policy
Can Employees Be Forced to Take Christmas Leave?
The Christmas period means employers must ensure they direct their employees to take annual leave on a reasonable basis. Find out more here.
Can an Employer Refuse Annual Leave? (2025 Update)
Permanent employees in Australia are entitled to paid annual leave. Find out in what circumstances your employer can refuse annual leave here.
Annual Leave Obligations for Employers (With Calculator)
Everything you need to know about annual leave in Australia, from accrual rates to legal requirements and calculations
Do Casual Employees Get Annual Leave?
Determining whether casual employees get annual leave entitlements has been a long debated issue. Read about the new and settled law here.
Can Employees Be Forced to Take Annual Leave?
There are certain circumstances where your employer can direct you to take annual leave. Learn more about your rights and responsibilities here.
Is Annual Leave Loading Payable on Termination?
Many employers are unsure of whether employees should be paid annual leave loading when employment ends. Find out the rules here.
A Shifted Focus to Well-being in the Workplace
2015 was a year that saw change in the mentality of Australians in the workplace, representing a shift in attitudes towards workplace flexibility.
What is Leave Loading?
Do you have any questions about your annual leave entitlements? Find more information about annual leave loading and check if you are eligible
What to Do if Employees Have Too Much Leave
Unsure of what to do when your employees have too much leave? Read here about what steps you can take to mitigate the situation.