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If you manage a team or run a small business in Australia, understanding the rules around annual leave notice periods is essential for smooth operations and legal compliance. Whether you’re planning workloads, dealing with last-minute staff requests, or looking ahead at your peak busy seasons, annual leave notice periods play a critical role in striking the right balance between business needs and employee rights.
Getting annual leave right is also a key part of compliance with the Fair Work Act 2009 and the modern award system, which set out specific entitlements and requirements you need to follow. The process isn’t always as straightforward as it seems – especially when you factor in leave requests during notice periods, sick leave overlaps, or how much notice needs to be given for annual leave in Australia.
In this article, we’ll walk you through:
- What the annual leave notice period is, and why it matters
- How much notice employees need to give for annual leave
- How to handle annual leave during a notice period
- The difference between annual leave and sick leave during the notice period
- Practical steps for employers to maintain legal compliance
Let’s break it down so you can navigate annual leave with confidence – and safeguard your business from potential disputes or breaches.
What Is the Annual Leave Notice Period?
The annual leave notice period refers to the amount of advance notice an employee must give their employer before taking annual leave. This ensures your business can plan for staffing gaps and maintain operational continuity.
Under the National Employment Standards (NES), which form part of the Fair Work Act, all full-time and part-time Australian employees (except for some casuals) are entitled to paid annual leave. However, the NES does not prescribe a set minimum for how much notice employees must give when requesting leave.
Instead, the notice period for annual leave is usually determined by:
- The applicable Modern Award or Enterprise Agreement
- The company’s policies and employment contracts
- A mutual agreement between the employer and employee
If neither the award nor the contract specifies a notice period, the Fair Work Ombudsman recommends employees give “reasonable notice.” What’s considered reasonable will depend on the circumstances, but in practice this is often between 2 to 4 weeks.
How Much Notice for Annual Leave in Australia?
How much notice do you need to give for annual leave? The answer often depends on the following:
1. Modern Awards and Enterprise Agreements
Many modern awards or registered enterprise agreements explicitly set out notice requirements for annual leave. Check the relevant award or agreement applying to your industry or business. For example, some awards require a minimum of two weeks’ written notice or even more before the leave is taken.
- Modern Award example: The Hospitality Industry (General) Award requires at least 4 weeks’ notice for annual leave.
- Enterprise Agreements may set different rules, so always check your enterprise agreement if you have one.
2. Employment Contracts and Workplace Policies
Employers can set out a notice period for annual leave in their employment contracts or leave policies, as long as these are consistent with the applicable award or enterprise agreement and the NES.
- For example, you might require employees to request leave at least four weeks in advance if possible.
- Policies should be transparent and accessible, and employees should receive clear communication about notice requirements on commencement.
3. What Is “Reasonable Notice” if Not Otherwise Specified?
Where there’s no set rule in your award, agreement, contract, or policy, best practice is to ask employees to give as much notice as possible. “Reasonable notice” will depend on:
- The amount of leave requested (one day vs two weeks, for example)
- Your business’s operational needs and how hard it is to arrange cover
- Whether the leave request falls during a busy season or at a critical time
If you’re unsure, you can often find a good rule of thumb detailed by the Fair Work Ombudsman or seek legal advice to clarify your obligations.
How Do Employees Apply for Annual Leave?
Employees are generally required to submit a formal notice of annual leave to their employer. This might be done through an online HR system, email, or by submitting a written form. Employers may then approve or decline the request based on legitimate business needs.
- Remember: Employers can only refuse annual leave requests if they have a valid business reason for doing so.
- It’s good practice to respond to leave requests as quickly as possible.
For tips on implementing effective workplace policies, see our article on workplace policies and staff handbooks.
Can You Use Annual Leave During a Notice Period?
One of the most common questions we hear at Sprintlaw is whether employees can take annual leave during their notice period.
The short answer: Yes, in most circumstances, employees may take annual leave during their notice period, if the employer agrees.
- If an employee resigns or their employment is terminated, the notice period is the timeframe between giving/receiving notice and the last day of employment (e.g., two weeks).
- Employees can ask to take accrued annual leave during this time, but you as the employer do not have to approve it unless an award, agreement, or contract says otherwise.
- If annual leave is not taken during the notice period, any accrued but unused annual leave must be paid out in full when employment ends, as required by the NES.
For more details, check out our resources on ending employment contracts and terminating employees.
Do Employees Need to Give Notice to Take Annual Leave While Serving Notice?
Yes – the ordinary rules apply. Employees are still required to submit a request for annual leave during their notice period, giving the required amount of advance notice (as per contract, policy, or reasonable practice).
Employers are not obliged to approve such leave if it would disrupt the business – for example, if the employee’s presence is required during handover or critical final tasks.
If you do approve annual leave during the notice period, that leave counts as part of the employee’s notice (meaning their last day is not pushed out).
Does Annual Leave Affect the Length of the Notice Period?
No, taking annual leave during the notice period does not extend the notice period. For example, if an employee is serving two weeks’ notice and takes three days of annual leave during that period (with your agreement), their termination date remains the same.
Employers cannot make employees take leave (or deduct annual leave) without consent, except where allowed by the award, agreement, or as a payout upon termination.
What About Sick Leave During the Notice Period?
Sick leave (personal leave) during the notice period works differently. If an employee is genuinely ill or injured, they can use their accrued sick leave, provided they notify you as soon as possible and meet any evidence requirements (such as a medical certificate).
- If the employee uses sick leave during the notice period, this normally counts towards their notice period, so the last day doesn’t shift unless the employment contract or award says otherwise.
- If the employee has no accrued sick leave left, any further absence would be unpaid leave – unless you and the employee agree to deduct this from their annual leave instead.
For an in-depth look at sick leave and other entitlements, see our article on sick pay and leave obligations.
Managing Annual Leave Requests: Compliance Best Practices
Complying with annual leave notice requirements keeps your business fair, productive, and low-risk for Fair Work claims or disputes. Here are the key steps for staying compliant as an employer:
- Check the Award/Agreement: Determine if a modern award or enterprise agreement applies to your workplace, and review its rules regarding annual leave notice.
- Establish Clear Policies: Develop an annual leave policy or include leave provisions in your employment agreements, specifying how much notice is needed, how requests are made, and how approvals are granted.
- Be Consistent: Apply your notice period and approval process consistently across your team, unless there’s a valid operational or personal reason to do otherwise.
- Communicate Early: Let your team know well in advance if there are times of the year when leave is more difficult to approve (for example, busy periods), and encourage early leave planning.
- Document Everything: Keep written records of all annual leave requests, approvals, and reasons for any refusals.
- Follow the Rules on Annual Leave at Termination: Always pay out any unused annual leave entitlements in full when an employee leaves.
If you’re looking for templates and expert help with leave policies, explore our package for employment agreements.
What Legal Documents Will Help Manage Leave Notice?
Having the right legal documents and policies in place makes annual leave management smoother for everyone – and helps you avoid potential legal headaches:
- Employment Contract: Clarifies employees’ leave entitlements, notice requirements, and your expectations.
- Workplace Leave Policy: Covers how to request annual leave, what notice is required, how approval works, and any blackout dates.
- Employment Separation Letter: Used when an employee resigns or is terminated, confirming outstanding leave payout entitlements.
- Employee Handbook: Details all workplace rights and policies, including annual leave and other types of leave.
Need help putting together tailored documents? See our full suite for employee termination and leave management.
Frequently Asked Questions About Annual Leave Notice Periods
How Much Notice Is Required to Take Annual Leave?
If your modern award, enterprise agreement, or company policy sets a period (such as 2 or 4 weeks), follow that. If there’s no set rule, “reasonable notice” usually means as much advance warning as possible based on the leave requested and your business needs (often at least 2 weeks’ notice for longer leave).
Can an Employer Refuse Annual Leave?
Yes, but only if there is a valid business reason (for example, if approving leave would impact critical business operations or if too many employees are away at once). Refusal should never be arbitrary or discriminatory.
Can I Require Staff to Take Annual Leave?
In some circumstances, yes – such as during business shutdowns, provided the award, agreement, or contract allows it. You can also direct staff to take leave if they have excessive balances, provided the rules in the NES and the applicable award or agreement are followed. Read more here on directing staff to take leave.
What Happens to Accrued Annual Leave When Employment Ends?
All unused accrued annual leave must be paid out to the employee in their final pay, including leave loading if it applies. This is a legal requirement under the NES.
Key Takeaways
- The annual leave notice period is usually set by modern awards, enterprise agreements, or your employment contract and leave policy – check these first.
- If you’re unsure, “reasonable notice” is generally 2 to 4 weeks, but should be decided based on your business needs and workload planning.
- Employees may request to use annual leave during their notice period, but this requires your approval as the employer.
- Sick leave requests during the notice period are treated separately but must be supported by evidence if you request it.
- Setting clear policies, following the applicable award or agreement, and documenting all requests helps protect your business and your staff.
- Paying out unused annual leave is legally mandatory at the end of employment.
- Strong legal documents and consistent workplace policies are your best defence against disputes.
If you would like a consultation on managing annual leave notice periods and leave entitlements for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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