Who can use this policy?
This policy can be used by all employers.
Commentary
This Policy allows permanent employees to apply for additional purchased leave in addition their standard annual leave entitlements under the Fair Work Act 2009 (Cth) and the NES.
Employees must have completed a minimum period of service and meet any additional leave balance requirements. Casual and fixed-term employees are not eligible.
In order to be eligible for purchased leave, employees must submit a written request to their manager in advance. Approval is at the employer’s discretion, considering operational needs and the employee’s personal circumstances.
Employees can purchase additional leave (up to a specified amount), which must be taken within 12 months in agreed blocks. Unused leave will be paid out at the end of the period.
The cost of purchased leave is deducted from the employee’s salary over 12 months. The deduction is proportional to the amount of leave purchased (e.g., one week = 1/52 salary reduction).
Purchased leave does not affect annual leave or personal leave accrual. Public holidays during purchased leave are not counted as leave. Superannuation contributions may be based on the employee’s adjusted salary, depending on the option selected.
Either party may terminate the purchased leave agreement with notice (subject to certain circumstances). If an employee leaves the company, any unused purchased leave will be paid out.
Important note to subscribers
The commentaries and documents in Workplace are updated as necessary, to keep them relevant. You should familiarise yourself with the relevant commentary each time you create a document.
This document has been drafted to suit a wide variety of businesses, with a number of options available to enable you to customise the document to better suit your business. Nevertheless, you may need to make other changes to the document so that it suits the specific needs of your business. If you make additional changes, we cannot guarantee that the changes and modifications you make to the document will be legally compliant or enforceable.
This commentary and any additional information provided to assist you in creating this document, does not constitute legal advice.
If you are unsure about any aspect of this document (including the changes or amendments you make to it), you should seek appropriate advice from a lawyer, skilled in these issues. You may also wish to consider contacting Australian Business Lawyers & Advisors for targeted advice on your business’ specific needs.
You should consult with your financial advisor in relation to any relevant taxation or financial issues concerning the document you create.
After creating this document, you should read through it carefully to make sure it meets your business needs and is consistent with other industrial instruments, policies and procedures which operate in your workplace. This commentary is not designed to be provided to employees or other workplace participants.
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