In the lead-up to public holidays, businesses tend to experience a wave of annual leave requests as people look to extend their time off – we’ve all seen the guides about what days to take off during the year to secure more consecutive days out of the office.
However, when too many people in a workplace take annual leave simultaneously, the result is often understaffing and stress for employers, managers, and employees.
There are several measures you can take as an employer to ensure you aren’t inundated by annual leave requests. It starts by understanding your obligations and rights as an employer, alongside your employees’ entitlements.
Implement a fair and practical request process
Employers should provide equitable access to annual leave to all employees for certain periods, including Easter or Christmas, when annual leave requests peak.
For example, it is useful to conduct an expression of interest survey ahead of public holidays so all staff can confirm when they’d like to take annual leave. This provides a clearer picture of who wants to take additional leave, giving you greater visibility and more notice of requests before and after public holidays.
Some businesses find that a first-in, first-served basis for approvals works best for them, and that is OK, too, but keep in mind that each request will still need to be individually considered.
Constantly monitoring staffing levels, as well as setting a realistic limit on the number of employees that can be on leave at once, protects your business and its workforce from the problems associated with being short-staffed.
Explore all alternatives before denying requests
Annual leave is taken when it is agreed upon between employers and employees, as outlined in the National Employment Standards – however, an employer can’t unreasonably refuse a request for leave.
An employee who feels their request was unfairly denied can appeal the decision in a court or tribunal if they can’t reach an agreement with their employer. Here, the grounds for denial will be assessed against several factors to determine if they are reasonable, including:
- The reason for the leave.
- The duration of the leave.
- The cost or impact to the employee if the leave is declined.
- The availability of other employees to fill in or alternative measures to make sure operations continue.
- The amount of notice given and any delay in the employer’s response.
- The extent to which the leave request complied with reasonable restrictions and policies set by the employer.
For example, an employer has no obligation to approve a leave request if an employee doesn’t have enough leave accrued. However, just because your policy states an employee must give four weeks’ notice, it doesn’t necessarily mean you can deny the request simply because it was made three weeks and four days before the desired leave period.
Business owners who are unsure about their obligations or rights should seek advice from an employment relations professional to ensure they remain compliant with employment relations legislation.
Ultimately, the denial of a leave request should only occur when its circumstances have been wholly reviewed, not a single element alone. This not only helps to prevent situations of contention between employers and employees but also any legal difficulties that can result from unreasonably denying an annual leave request.
Clearly communicate the outcome of requests
Any communication on the outcome of an annual leave request should be formalised electronically, or in writing, this is part of maintaining a record of leave balances, as required by law, and creates a record of the facts.
Having a record of facts is especially important in the case of denied annual leave requests because it details why the decision was made and how an employee was informed of it. If the matter is escalated to a court or tribunal, this record can serve as evidence as to why the denial was reasonable.
If an annual leave request is not viable for the continued functioning of the business, negotiate with the employee as opposed to outright refusing it. This can prevent potential conflict and promotes a fair decision-making process.
Here are some questions you can ask your employee in coming to a mutually agreeable solution:
- Can you take annual leave at a different time?
- Can your annual leave start a week earlier or finish a week later?
- Can this longer period of leave be broken into two shorter periods?
If the leave request still cannot be accommodated after a discussion, clearly outline the reasons for the decline, stating what the barriers are and why they can’t be overcome. Recommunicate alternatives previously discussed and present any new suggestions you can identify to reach a resolution.
Lead with compassion and an understanding of the employee’s situation when communicating a denial of annual leave – they will likely be upset or angry, so be sure to listen to and acknowledge their concerns when advising why their request was rejected, emphasising the operational needs of the business.
Public holiday periods can be stressful for all parties in a business when too many people take additional days off at the same time. However, this stress can be eased by having an effective annual leave request process in place that is grounded in a comprehensive understanding of both employer and employee rights.
Ryan Price is the head of content and training at Employsure.
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Annual leave refers to a term of paid vacation or time off, often accruing after four weeks of work per year (pro rata for part-time employees). Only full- and part-time employees typically accumulate annual leave.
Jack Campbell
Jack is the editor at HR Leader.