Taking Annual Leave in Advance

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Posted November 6, 2023

Where an employer intends to shut down over the festive season and employees do not have enough annual leave to cover the entire period, an option may be for the employee to take annual leave in advance.

Hair and Beauty Industry Award 2020

The Hair and Beauty Industry Award 2020 contains provisions which allow an employer and an employee to agree in writing to the employee taking a period of paid annual leave before they have accrued the entitlement.

This arrangement is commonly referred to as “annual leave in advance” and is found in clause 24.4 of the award.

What is required to take annual leave in advance?

Agreement can be reached between the employer and the employee for the employee to take annual leave in advance. The agreement must be in writing and include the following:

1. it must state the amount of leave to be taken in advance and the date on which the leave will commence; and
2. it must be signed by the employer and the employee, and if the employee is under the age of 18, by their parent or guardian.

The employer must keep a copy of this written agreement.

Is there a template that an employer and employee can use for annual leave in advance?

A template is available on the HABA website. Please see Attachment A below.

What if an employee takes annual leave in advance and then they resign or their employment ends?

If an employee takes annual leave in advance and their employment ends before they have accrued that period, the Hair and Beauty Industry Award 2020 allows the employer to deduct the amount still owing from their final pay.

More information

HABA members can call the HABA Advice Line on 02 9221 9911 to discuss this topic and other workplace relations issues.

ATTACHMENT A