My employer denied my annual leave
When your employer can refuse annual leave, excessive leave rules, shutdown periods, and what to do about it.
Can your employer refuse annual leave?
Yes, in some circumstances. Under the Fair Work Act, an employer can refuse a request for annual leave if the refusal is 'reasonable.' Reasonable grounds might include: the requested dates fall during your employer's busiest period, too many other employees are already on leave at the same time, or there isn't enough staff to cover your absence. However, the refusal must be genuine — your employer can't just refuse all leave requests indefinitely.
Your basic annual leave entitlement
Full-time employees get 4 weeks (152 hours) of paid annual leave per year. Part-time employees get 4 weeks pro-rata based on their ordinary hours. Shift workers may get 5 weeks under some awards. Annual leave accrues progressively throughout the year — you don't have to wait until you've completed a year to take it. Unused leave carries over from year to year. Casual employees don't get paid annual leave (it's compensated through casual loading).
Can your employer force you to take leave?
In some cases, yes. If you've accumulated 'excessive' annual leave — generally 8 weeks or more (10 weeks for shift workers) — your employer can direct you to take leave after consultation. They must give you at least 8 weeks' notice and can't direct you to reduce your balance below 6 weeks. Some awards and agreements also allow employers to direct leave during a shutdown period (like Christmas/New Year).
Shutdown periods
Some businesses close for a period (commonly over Christmas) and require employees to take annual leave. This is called a shutdown period. Your employer must give you reasonable notice — check your award, but it's typically at least 28 days. If you don't have enough accrued leave to cover the shutdown, you can take unpaid leave or, by agreement, go into negative leave. Your employer can't force you to go into negative leave without your agreement.
Leave loading
Many awards include annual leave loading — an extra 17.5% on top of your base rate while you're on annual leave. Check your award or agreement to see if you're entitled. Leave loading must also be paid when unused leave is cashed out or paid on termination (unless your award says otherwise). Some agreements allow employers to pay a higher base rate that absorbs leave loading — check your contract.
What to do if leave is unreasonably refused
1. Ask your employer for the specific reason they're refusing your leave in writing. 2. Propose alternative dates if possible. 3. Check your award or agreement for any specific leave request processes you need to follow. 4. If you believe the refusal is unreasonable, contact the Fair Work Infoline on 13 13 94 for advice. 5. You can apply to the Fair Work Commission to deal with a dispute about annual leave. 6. Don't take the leave without approval — this could be treated as unauthorised absence.
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FairWork Mate is an independent commercial service. We are not affiliated with, endorsed by, or associated with the Fair Work Ombudsman, the Fair Work Commission, or any Australian Government agency. Content is general information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
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