Following the 4 yearly review of the Modern Awards by the Fair Work Commission, a number of changes have been introduced to ensure consistency around annual leave provisions. The affected awards include:
- General Retail Industry Award 2010
- Fast Food Industry Award 2010
- Restaurant Industry Award 2010
- Clerks Private Sector Award 2010
- Hair and Beauty Industry Award 2010
Under the General Retail Industry Award 2010, the new provisions include:
- Paid Annual Leave in Advance: An employee and employer may agree in writing to the employee taking a period of paid annual leave in advance. This agreement must follow the conditions prescribed by the Award. On the employee’s termination, the employer may deduct an amount paid to the employee to which an entitlement has not been accrued – cl 26.7;
- Close-down: An employer may require an employee to take annual leave as part of a close-down of its operations, by giving at least four weeks’ notice. This entitlement has not changed – cl 32.5;
- Excessive Leave Accrual: An employee has an excessive leave accrual if the employee has accrued more than 8 weeks’ paid annual leave (10 weeks for a shift worker). In these circumstances, an employer and employee may seek to confer with the other and genuinely try to reach agreement on how to reduce or eliminate the excessive leave accrual – cl 32.6;
- Where an agreement is not reached, an employer may direct an employee to take a period of paid annual leave in accordance with cl 32.7;
- Alternatively, an employee may give a written notice to the employer requesting to take a period of paid annual leave in accordance with cl 32.8.
- Cashing Out Annual Leave: An employee and employer may agree in writing to cash out paid annual leave. This agreement must follow the conditions prescribed by the Award. An employer must not cash out more than 2 weeks of paid annual leave in any period of 12 months – cl 32.9.
Under the Fast Food Industry Award 2010, the new provisions include:
- Paid Annual Leave in Advance: An employee and employer may agree in writing to the employee taking a period of paid annual leave in advance. This agreement must follow the conditions prescribed by the Award. On the employee’s termination, the employer may deduct an amount paid to the employee to which an entitlement has not been accrued – cl 28.4;
- Cashing Out Annual Leave: An employee and employer may agree in writing to cash out paid annual leave. This agreement must follow the conditions prescribed by the Award. An employer must not cash out more than 2 weeks of paid annual leave in any period of 12 months – cl 28.5;
- Excessive Leave Accrual: An employee has an excessive leave accrual if the employee has accrued more than 8 weeks’ paid annual leave (10 weeks for a shift worker). In these circumstances, an employer and employee may seek to confer with the other and genuinely try to reach agreement on how to reduce or eliminate the excessive leave accrual – cl 28.6;
- Where an agreement is not reached, an employer may direct an employee to take a period of paid annual leave in accordance with cl 28.7;
- Alternatively, an employee may give a written notice to the employer requesting to take a period of paid annual leave in accordance with cl 28.8.
Under the Restaurants Industry Award 2010, the new provisions include:
- Close-down: An employer may require an employee to take annual leave as part of a close-down of its operations, by giving at least four weeks’ notice – cl 35.3;
- Excessive Leave Accrual: An employee has an excessive leave accrual if the employee has accrued more than 8 weeks’ paid annual leave (10 weeks for a shift worker). In these circumstances, an employer and employee may seek to confer with the other and genuinely try to reach agreement on how to reduce or eliminate the excessive leave accrual – cl 35.4;
- Where an agreement is not reached, an employer may direct an employee to take a period of paid annual leave in accordance with cl 35.5;
- Alternatively, an employee may give a written notice to the employer requesting to take a period of paid annual leave in accordance with cl 35.6.
- Paid Annual Leave in Advance: An employee and employer may agree in writing to the employee taking a period of paid annual leave in advance. This agreement must follow the conditions prescribed by the Award. On the employee’s termination, the employer may deduct an amount paid to the employee to which an entitlement has not been accrued – cl 35.7;
- Cashing Out Annual Leave: An employee and employer may agree in writing to cash out paid annual leave. This agreement must follow the conditions prescribed by the Award. An employer must not cash out more than 2 weeks of paid annual leave in any period of 12 months – cl 35.8.
Under the Clerks Private Sector Award 2010, the new provisions include:
- Paid Annual Leave in Advance: An employee and employer may agree in writing to the employee taking a period of paid annual leave in advance. This agreement must follow the conditions prescribed by the Award. On the employee’s termination, the employer may deduct an amount paid to the employee to which an entitlement has not been accrued – cl 29.4;
- Close-down: An employer may require an employee to take annual leave as part of a close-down of its operations, by giving at least four weeks’ notice – cl 29.5;
- Excessive Leave Accrual: An employee has an excessive leave accrual if the employee has accrued more than 8 weeks’ paid annual leave (10 weeks for a shift worker). In these circumstances, an employer and employee may seek to confer with the other and genuinely try to reach agreement on how to reduce or eliminate the excessive leave accrual – cl 29.6;
- Where an agreement is not reached, an employer may direct an employee to take a period of paid annual leave in accordance with cl 29.7;
- Alternatively, an employee may give a written notice to the employer requesting to take a period of paid annual leave in accordance with cl 29.8.
- Cashing Out Annual Leave: An employee and employer may agree in writing to cash out paid annual leave. This agreement must follow the conditions prescribed by the Award. An employer must not cash out more than 2 weeks of paid annual leave in any period of 12 months – cl 29.9.
Under the Hair and Beauty Industry Award 2010, the new provisions include:
- Paid Annual Leave in Advance: An employee and employer may agree in writing to the employee taking a period of paid annual leave in advance. This agreement must follow the conditions prescribed by the Award. On the employee’s termination, the employer may deduct an amount paid to the employee to which an entitlement has not been accrued – cl 33.4;
- Close-down: An employer may require an employee to take annual leave as part of a close-down of its operations, by giving at least four weeks’ notice. This entitlement has not changed – cl 33.5;
- Cashing Out Annual Leave: An employee and employer may agree in writing to cash out paid annual leave. This agreement must follow the conditions prescribed by the Award. An employer must not cash out more than 2 weeks of paid annual leave in any period of 12 months – cl 33.6;
- Excessive Leave Accrual: An employee has an excessive leave accrual if the employee has accrued more than 8 weeks’ paid annual leave (10 weeks for a shift worker). In these circumstances, an employer and employee may seek to confer with the other and genuinely try to reach agreement on how to reduce or eliminate the excessive leave accrual – cl 33.7;
- Where an agreement is not reached, an employer may direct an employee to take a period of paid annual leave in accordance with cl 33.8;
- Alternatively, an employee may give a written notice to the employer requesting to take a period of paid annual leave in accordance with cl 33.9.
If you would like to find out more information about these changes and what they mean for your business, call the National Retail Association Hotline today on 1800 RETAIL (738 245).