Annual Leave Policy
An Annual Leave Policy outlines the annual leave entitlements and obligations in place for your employees.
5.0 (1 reviews)
Last updated December 19, 2024
Under 5 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This Annual Leave Policy clarifies that annual leave requests are subject to approval and the company’s operational requirements. It can help protect your company by minimising the risk of claims or disputes over any unauthorised annual leave or related expenses.
It also helps your employees feel more confident in submitting an annual leave request by providing them with a clear process to follow. This Policy clarifies the process for an annual leave application, as well as the process for directing employees to take annual leave when they have excessive leave or during an annual shut down such as the Christmas period.
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:
The Legal Risk Score of a Annual Leave Policy Template
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.
Annual Leave Policy Checklist
Complete your free Annual Leave Policy with our checklist
Submit Leave Application in Writing
Ensure that your application for annual leave is submitted to your manager in writing well in advance of the intended leave dates.
Consult with Manager
Before finalising any travel plans or commitments, consult with your manager to discuss the likelihood of leave approval based on operational demands.
Monitor Approval Status
Keep track of the approval process and confirm receipt and acceptance of your leave application to avoid any misunderstandings or delays.
Prepare for Possible Directed Leave
Stay informed about the company's policies on directed leave, such as during an annual shutdown or if you have accrued excessive leave, and plan accordingly.
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