Can leaders refuse to grant Annual Leave? What the law says

Annual leave is more than just a benefit. It is a legal entitlement and an essential part of wellbeing and retention for early childhood educators. Despite this, leaders navigating requests for annual leave in the context of ratios, rosters, and rising demand can prove challenging for service leaders.

In order to be compliant with the National Quality Standards and the relevant awards for the early childhood education and care (ECEC) sector, leaders need to safeguard against any potential oversights.

Employment lawyer Andrew Jewell recently prepared some general advice for readers of seek.com.au, which has been recontextualised for ECEC below:

Who is entitled to annual leave?

Under the National Employment Standards, full-time employees are entitled to four weeks of paid annual leave per year. Part-time employees receive the same entitlement on a pro rata basis. Casual employees do not accrue annual leave.

Can leaders reject an annual leave request?

Yes, but only on reasonable business grounds.

“Employees can apply for annual leave at any point, even if they have not yet reached a four-week balance,” Mr. Jewell explained, “but employers can only refuse a request if they have valid operational reasons for doing so.”

These might include peak enrolment periods or critical staffing shortages. There is no universal rule about notice periods, however, enterprise agreements or internal policies might set expectations.

“The amount of notice an employee gives is relevant,” Mr Jewell added. “It helps determine whether approving or declining the request is reasonable.”

Can leaders direct staff to take leave?

Yes, but only in specific situations.

“You can direct staff to take annual leave during a planned shutdown like over Christmas, or if they have built up an excessive balance,” Mr Jewell explained.

However, if educators are covered by an award or enterprise agreement, it is important to check what these allow when it comes to directed leave.

What happens to unused leave when someone exits?

Untaken annual leave must be paid out in full when an employee reaches the end of their employment relationship or term.

“Regardless of how or why someone leaves, their accrued annual leave must be paid,” Mr Jewell confirmed. This includes resignations, redundancies, and dismissals.

Can someone be dismissed while on leave?

Yes, but the advice is to proceed with caution.

“It is not automatically unlawful to dismiss someone on leave,” Mr Jewell added. “However, dismissing someone because they took leave is unlawful, and if the timing looks suspicious, it may also be considered unfair.”

Why it matters

Annual leave is a key part of work-life balance, and handling requests fairly is essential for maintaining trust and morale. Understanding the relevant legal obligations helps ensure that leaders are protecting both their team and their service.

This article is general and does not constitute legal advice. For questions specific to your service or situation, contact the Fair Work Ombudsman or visit their website for more information.

Access the original coverage of this story here.