Q. We have an employee who will be taking two weeks’ pre-approved annual leave over the Christmas and New Year period. The employee has subsequently given four weeks’ notice of termination of their employment with the final date of employment being 3rd  January next year. This means the period of notice includes two weeks’ annual leave. It is our understanding an employee must work out any period of notice. We have two questions about this situation. Firstly, can the company cancel the two weeks’ annual leave and direct the employee to work out the notice period or, secondly, if the employee takes the annual leave, is the period of the notice extended by two weeks to accommodate the four-week notice period? 

 

A. The employer cannot cancel a period of annual leave that has already been approved. Once annual leave is approved by the employer it can be withdrawn only with the consent of the employee. As annual leave has been authorised by the employer it counts as part of the period of notice and the original termination date would still apply. 

 

Absence during notice period 

While an employee who has given notice to the employer is required to work out the notice, this would not include any day the employee is absent on authorised leave, such as annual leave, personal/carer’s leave or a public holiday. An employee who is absent from work without reasonable cause during the notice period may have wages docked for the period of the absence however the length of the notice period is not extended by the unauthorised absence. 

 

Applying for annual leave during notice 

If the employee had applied for annual leave after tendering their notice the employer could reasonably refuse the request if based on objective grounds, such as the operational requirements of the business as the basis for any period of notice is to allow the employer sufficient time to fill the position. 

 

Bottom line 

Once annual leave has been approved by the employer it cannot be cancelled except with the consent of the employee.