Bosses welcome Fair Work Commission decision on forcing employees to take leave

Updated

Workers could be asked to take enforced holiday leave if they accrue more than eight weeks under a ruling by the Fair Work Commission.

The commission has changed working conditions across almost 120 awards and will allow employees to also cash out up to two weeks of holiday pay a year if both parties agree.

Workers can also be granted holidays before they have accrued them under the new system.

The Australian Industry Group (AIG) welcomed the ruling, describing it as a sensible decision to give them more flexibility.

"Employers will have enhanced rights to direct employees to take annual leave when an excessive amount has been accrued," said AIG chief executive Innes Willox.

"The lack of existing rights in this area has been a major headache for employers," Mr Willox said.

The commission heard that workers hoarding holiday leave had presented major cash flow problems for small business when workers resigned.

Fair Work Commission rulings Employers can force their employees to use some leave if they have accrued more than eight weeks. Employers will also be allowed to cash out up to two weeks of holiday pay a year if parties agree. In certain circumstances employees will be able to take leave before accruing it. Holiday pay will be permitted via regular electronic transfer, instead of any obligation to pay upfront.

The Australian Council of Trade Unions (ACTU) voiced concern about workers cashing out their holidays.

The ACTU submission stated: "We strongly agree that employees should be taking leave for their rest and recreation and also for occupational health and safety reasons."

A survey presented to the commission found that 41 per cent of employees accrued leave to save the time for a future holiday, 13 per cent could not get time off work that suited them, 30 per cent were too busy at work to get leave, 9 per cent preferred to work than be on holidays, while around 7 per cent preferred to take the money than the holiday.

John Buchanan, director of Workplace Research Centre at the University of Sydney, described the ruling as being about "new rights for business, not for workers".

"[This is a] a piecemeal change ... that undermines the standards for workers who get leave directly," he said.

Professor Buchanan said half of Australia's workers, both self-employed and casuals, earned no holidays at all.

"What are we doing about getting people to spend more time with friends and family?" Professor Buchanan said.

"What are we doing about leave entitlements for everyone?"

Topics: work, business-economics-and-finance, nsw

First posted