Can we direct a retrenched employee to take annual leave?

Q: An employee’s position has been made redundant and they have a 3-month notice period under their employment agreement.

During that 3-month period, can the employer direct the employee to take annual leave to reduce their leave accrual and the amount payable to them upon cessation of their employment?

A: Generally, an employer is unable to direct an employee to take annual leave during their notice period to reduce their entitlements on termination of employment. However, you may like to review the employee’s employment contract, relevant award or enterprise agreement to determine when you may require an employee to take annual leave.

Please note: The answer is correct at the time of publishing. Be aware that laws may change over time. Refer to Redundancy and retrenchment for current advice.

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