Excessive Annual Leave Accrual - Direction to Take Leave Letter (Modern Award Coverage)

Many modern awards include provisions on dealing with the accrual of excessive annual leave. In the relevant awards an employee is defined as having an “excessive leave accrual” if the employee has accrued more than 8 weeks’ paid annual leave or 10 weeks’ paid annual leave for certain shift workers.

The employer may direct the employee in writing to take one or more periods of paid annual leave, provided that:

• a direction by the employer is of no effect if it would result at any time that the employee’s remaining accrued entitlement being less than 6 weeks when any other paid annual leave arrangements are considered;
• the employer must not require the employee to take any period of paid annual leave of less than one week;
• the employer must not require the employee to take a period of paid annual leave beginning less than 8 weeks, or more than 12 months, after the direction is given;
• a direction by the employer must not be inconsistent with any leave arrangement agreed by the employer and employee; and
• an employee to whom a direction has been given may request to take a period of paid annual leave as if the direction had not been given.

This template letter is specific to employees covered by a modern award that contains provisions dealing with excessive leave. It is only to be used if the employer has genuinely tried to reach agreement with an employee to take annual leave but agreement is not reached.