Workers could get rights to double their holidays

“As with all leave it should be properly recorded, and it should be clear to the worker how this would impact any future leave and super contributions.”

While the Fair Work Act contemplates allowing workers to take annual leave at half pay, few awards actually permit it.

During the pandemic, the Commission introduced temporary rights for employees to take leave at half pay as a way to avoid them taking unpaid leave while sick, but the entitlements have since expired.

Unions and employers are understood to have agreed that the right to request should rest with the employee rather than the employer.

However, Australian Industry Group chief executive Innes Willox said it was critical such arrangements were by agreement given bosses could struggle to accommodate longer staff absences.

“Awards should allow this kind of flexible leave arrangement to be implemented, but it is essential that it is only able to be used if an individual employer and employee agree to it,” he said.

“Managing staff absences due to existing leave entitlements is already very challenging for many employers. Additional periods of leave won’t be able to be accommodated in all circumstances.”

Australian Chamber of Commerce and Industry workplace relations director Jess Tinsley said the amendment was “commonsense change”.

“We know that employers who can provide flexibility for employees with caring responsibilities do, but this is a good example of where employers who try to help their employees by offering flexibility are stopped from doing so by our unnecessarily rigid workplace relations system,” she said.

However, she warned that giving workers a unilateral right to double their leave whenever they like “could have enormous ramifications on an employer, especially during a busy period or where they are short staffed”.

The entitlement to take leave at half pay is different from policies on purchasing more leave, where employers allow workers to spread any pay reduction across the year in return for extra time off.

The Fair Work Commission is considering award changes to better suit work and care responsibilities, including a right to request to work from home and expanding ordinary hours beyond 9-5 for remote workers.

Mr Willox said leave at half pay was one of a raft of “sensible amendments” the employer group was backing to make “our notoriously complex system of awards” more practical and remove barriers to flexible work.

“Our workplace laws need to make it easier for employers to accommodate employee preferences over their employment while still ensuring employers retain the ability to manage their operations. This proposal is a modest step in the right direction.”

Award changes are expected to be finalised by the commission mid-year.