Summer Picnic


Unlimited Annual Leave – does this work?


11 May 2023

Introducing an unlimited annual leave policy to employees should be done in a clear and transparent manner taking into consideration the minimum requirements of the relevant award. This is a significant change and requires careful consideration and planning for any employer.

If implemented correctly, this is a great benefit to retain the current team and attract new people as well as demonstrating the trust you have for your employees.

Here are some steps for employers to consider:

  • Evaluate the current annual leave policy, employee employment contracts and the terms and conditions set in the relevant award. This review is aimed at identifying any potential challenges or problems that may arise. For example, has the employer considered:
  • How to correctly record the annual leave in the Payroll or HRIS system to ensure accurate leave pay out when an employee leaves the business
  • Is the employer understaffed – could this policy add extra pressure to the team?
  • Communicate clearly to the team the benefits of unlimited annual leave. This includes highlighting the increased flexibility and work life balance it provides, as well as the trust and autonomy it demonstrates to the team.
  • Establish clear and transparent guidelines to ensure that unlimited annual leave is used responsibly and doesn’t negatively impact the business. Employers should establish clear guidelines for requesting and approving leave. This could include a minimum notice period to ensure coverage.
  • Monitor the policy regularly to ensure it continues to benefit both parties. This includes tracking the use of unlimited annual leave and ensuring you have systems in place so you can measure the impact to productivity.

We are here to help and support you with the introduction of unlimited annual leave to ensure it is implemented successfully. Call us on 1300 474 672, or send us an email if you need help.


More News? Sign Up for our e-Newsletter?

Join us

Be part of the Impact HR Insights Community

Want to know what's happening in the world of HR? Join our Insights Community and get the latest HR news and best practice updates from the Impact HR team.

You have Successfully Subscribed!