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In Australia’s national workplace relations system, an employer must not unreasonably refuse an employee’s request to take annual leave. You should request leave before it starts and follow the procedure in your award, registered agreement, workplace policy or contract. The employer and employee normally agree on the dates and length of leave. There is no single notice period or universal list of acceptable refusal reasons for every workplace, so the applicable instrument and the facts matter.
This guide explains how annual leave accrues, when an employer may direct leave during a shutdown or because of a large balance, how pay and public holidays work, and what to do when a request is refused. It is general information based on Fair Work Ombudsman guidance current on 13 October 2026, not individual legal advice.
The basic rule when you ask for annual leave
The Fair Work Ombudsman’s central rule is: “The employer must not unreasonably refuse an employee’s request to take annual leave.” That does not mean every requested date must be approved. An employer can consider operational needs and other relevant circumstances, but a refusal must be reasonable in the circumstances.
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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsMake the request before the leave begins. The exact process may be set by an award, registered enterprise agreement, workplace policy or employment contract. One workplace may require an online form; another may require written notice to a manager. The official guidance does not establish one notice period that applies to every employee.
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Check which legal instrument covers your job before relying on a general statement. The answer can differ for an employee covered by a modern award, an enterprise agreement, or neither. Classification, shift arrangements and the wording of the current instrument can also affect the result.
How annual leave accrues and when you can use it
Four weeks for most non-casual employees
Under the National Employment Standards (NES), employees other than casual employees accrue four weeks of paid annual leave for each year of service. Accrual is continuous and based on ordinary hours. For a full-time employee working ordinary hours consistently, that is generally four weeks per year; part-time employees accrue the equivalent based on their ordinary hours.
Leave can be taken once it has accrued. It does not have to be used in the same year it is earned, so an unused balance carries forward while employment continues. A policy saying leave expires at the end of each calendar year cannot override the NES where the NES applies.
Annual leave is different from a shutdown or stand down
A business may close temporarily, such as over Christmas and New Year. A shutdown direction is an instruction to take annual leave under the rules applying to the employee. It is not the same as a stand down. A stand down is a separate workplace-relations mechanism with different legal conditions; an employer should not describe a shutdown as a stand down simply because the workplace is closed.
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What to check before submitting a request
- Confirm coverage. Identify whether your role is covered by a modern award, registered agreement, or neither. The Fair Work Ombudsman’s award and agreement resources can help you locate the current instrument.
- Read the leave clauses. Look for the request process, notice wording, approval rules, shutdown provisions and any clauses about excessive accruals.
- Check your balance. Confirm how much leave has accrued and whether any public holidays fall within the proposed period.
- Follow the workplace process. Use the required system or written form and provide the requested dates and length of leave.
- Keep a record. Save the request, the response and any later changes. Asking for a refusal reason and alternative dates in writing is sensible record-keeping, although the sources do not make those steps universal legal requirements.
Plan around the procedure that actually applies to you. A contract or policy may set an internal deadline, while an award or agreement may contain a different process. If they appear inconsistent, obtain advice before assuming one document controls.
If your employer refuses your request
Start with the reason and the timing
Ask what operational or other reason is being relied on and whether different dates would work. Compare the explanation with the leave clause in your award or agreement and with the workplace’s normal process. The legal question is whether the refusal is unreasonable, not whether the employer used a particular phrase or gave a particular number of days’ notice.
Look for workable alternatives
A refusal of one period is not necessarily a refusal of annual leave altogether. You can propose different dates, a shorter period, or separate blocks if that addresses the stated issue. Keep the discussion in writing so there is a clear record of what was requested, why it was declined and what alternatives were offered.
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Until leave is approved or otherwise authorised under the applicable instrument, do not assume that submitting a request gives you permission to be absent. Taking time off without approval can create a separate attendance or disciplinary issue even when the original refusal was questionable.
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When an employer can direct annual leave
An employer’s power to direct leave is a separate issue from the rule against unreasonably refusing your request. The direction must come from the source of authority that covers your employment.
| Coverage | When a direction may be made | What to verify |
|---|---|---|
| Employee covered by a modern award | Only if the award permits the direction and its conditions are met. | The current award clause, reason, written notice and any limits or procedures. |
| Employee covered by a registered enterprise agreement | Only if the agreement permits the direction and its conditions are met. | The agreement’s shutdown and excessive-accrual clauses and notice requirements. |
| Employee covered by neither an award nor an agreement | The employer may require annual leave when the requirement is reasonable. | Whether the direction is reasonable in the circumstances and consistent with the employment arrangement. |
Do not assume that a manager can direct leave merely because the business prefers everyone to be away at the same time. First identify the instrument and the clause that is said to authorise the direction.
Shutdowns: the rules depend on your instrument
Most awards have specific shutdown provisions
Current Fair Work Ombudsman end-of-year guidance says most awards contain shutdown rules. In many cases, a shutdown direction must be reasonable, in writing and issued within the notice period required by the award. Those conditions are not a national default; they come from the particular instrument.
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What if the instrument has no shutdown direction rule?
If an award or agreement does not authorise a shutdown direction, an employer covered by that instrument cannot direct annual leave under a shutdown rule that is not there. The parties may still agree to annual leave, including annual leave taken in advance where the applicable rules allow it, or to unpaid leave. If you do not have enough accrued leave, the available arrangements depend on the instrument and on what you and the employer agree. An employer cannot automatically force unpaid leave merely because the business is closed.
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An example, not a nationwide deadline
The Legal Services Award 2020 (MA000116) provides an example of how detailed these clauses can be. It requires 28 days’ written notice of a temporary shutdown, although a shorter period can be agreed by the majority of relevant employees. The award also contains specific limits and procedures for directions related to excessive accruals. That 28-day period applies to the award’s covered employees; it is not a universal notice period for every Australian worker.
Large annual-leave balances and “excessive” accrual
The Fair Work Ombudsman generally describes an excessive annual-leave balance as more than eight weeks, or more than ten weeks for shiftworkers. These figures are markers in the general guidance, not an automatic licence to order every employee to take leave.
Some awards and registered agreements allow an employer to direct leave in specified circumstances once a balance is excessive. Some also give an employee a right to initiate leave when the balance is high. The operative threshold, notice, minimum amount that may be directed and dispute process must be taken from the current award or agreement. Check those clauses before accepting or challenging a direction.
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These situations are often confused, but they involve different tests and evidence.
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| Issue | Employee request | Employer direction |
|---|---|---|
| Who starts the action? | The employee proposes dates and length. | The employer specifies that leave must be taken. |
| Core legal question | Whether the employer’s refusal is unreasonable. | Whether the applicable award, agreement or reasonable-requirement test authorises the direction. |
| Coverage matters | The request procedure can come from an award, agreement, policy or contract. | Award and agreement employees need an authorising clause; employees without either are subject to reasonableness. |
| Common context | Planned personal leave, travel or rest. | Temporary shutdowns or management of an excessive balance. |
| Records to keep | The request, response, reason and proposed alternatives. | The direction, legal clause, notice date, dates of leave and balance calculation. |
How annual leave is paid
For NES-covered employees, annual leave is paid at the base rate for ordinary hours. An award or registered agreement may provide a different calculation method or annual leave loading. Check the applicable instrument and your payslip rather than assuming the base-rate rule answers every payroll question.
A public holiday that falls during annual leave is not counted as annual leave. The holiday therefore does not reduce the balance for that day, provided the public holiday is one that would otherwise apply to you.
Untaken annual leave must be paid out when employment ends. Where annual leave loading would have applied during employment, the termination payment includes that loading as required by the applicable rules.
What to do when a shutdown leaves you short of leave
- Ask for the written authority. Request the award or agreement clause relied on and the notice date.
- Check your accrued balance. Confirm which days are annual leave and whether public holidays have been excluded correctly.
- Ask what happens to the remaining closure days. Possible arrangements can include agreed leave in advance or agreed unpaid leave, but the available choice depends on the instrument and your consent.
- Do not sign an alteration without understanding it. An agreement to unpaid leave or leave in advance can affect pay and future balances.
- Get advice if the direction is disputed. A union, industry association, workplace-relations professional or the Fair Work Ombudsman can explain the general rules and the next step.
Common mistakes that cause disputes
- Treating four weeks as a use-it-or-lose-it entitlement. NES annual leave generally carries forward until taken or paid out at termination.
- Assuming every employer uses the same notice period. The sources establish no universal request deadline; shutdown periods come from the relevant instrument.
- Applying the eight-week figure automatically. It is a general excessive-balance marker, while an award or agreement may set the operative rule.
- Assuming a shutdown direction is always lawful. Award and agreement coverage must be checked first; an agreement-free employee is assessed under reasonableness.
- Counting a public holiday against the balance. A public holiday during annual leave does not reduce the annual-leave balance.
- Ignoring casual status. Casual employees do not accrue annual leave under the NES entitlement described here.
- Relying on an old copy of an instrument. Notice, shutdown and excessive-accrual clauses can change, so use the current version.
Where to get help with a personal dispute
For an individual problem, gather your employment contract, recent leave records, the current award or registered agreement, the original request, the refusal or direction and any payroll information. The Fair Work Ombudsman provides general information and can be contacted through its Infoline on 13 13 94. A union, industry association or workplace-relations professional can help interpret a clause and assess your particular facts.
Coverage is the first question to resolve: confirm that your employment is in Australia’s national workplace relations system, identify your classification and locate the current instrument. Only then can you apply the relevant notice, shutdown or excessive-balance rule to the dates in dispute.
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