Resignation and Annual Leave

[Tonyt4]

I have given notice under a personal contract. Unfortunately this was 3 months. This was accepted with no conditions however 5 days later I was handed a letter (with no discussion) saying that I was required to take remaining annual leave before I left the company and so would be required to take leave at x date and use my annual leave up to my noted end date. Only about 3 weeks and in itself not an issue as I am happy to leave.

However is the company able to insist on this?
It seems a case of "penny pinching" from their side and if not against any "rule" at least poor form.

There has been no animosity however having changed jobs a few times I have found companies usually like to have keep a trained worker (with no issues) for a better hand over and frankly a few weeks pay on leaving is always a helping hand if timing of a new start is not perfect. I will now leave earlier than expected and have no intention of coming back for a last day if requested.

Any views would be welcome.

[Tiger]

The taking of annual leave should be based on consultation although where there are Xmas shuts etc, it is obligatory but there'd generally be policies around that and well communicated.

I have seen a fair bit of your example and where is mostly occurs is in businesses which are smaller or owned/managed remotely by Asians. Our leave is generous and many overseas HOs have a problem with that and so try to force the taking of A/L in the notice period. If asked I advise they can't force that.

What they don't realise is that the employer is still up for the employee's oncosts because they are still an employee until the end of the A/L period. Plus as long as you are on the A/L you are still accruing all leave types.

In my corporate life I had a rule and it was no leave of any kind to be substituted for notice because you want to get the most from what little handover time there is.

Given they've given you three months' notice, I'd say the work has dried up, they don't have anything more for you and have acted accordingly. They would have been far better off talking to you about this and coming to an agreement with you to leave earlier and pay out the notice. I suspect you are right, they are penny pinching but whether you want to fight it is the question.

Importantly, the actual contract you are working under and the exact wording of the notice/termination clause is key. But they can't force you to take the A/L and if you feel strongly about this, you could contact the Fair Work Ombudsman and get advice and then go back to the employer and re-negotiate your exit. You've nothing to lose with this action, you are leaving anyhow. Perhaps your decision will be based on how much out of pocket you are going to be by going the way they want you to go - no one wants to be diddled.

Good Luck
Tiger

[Tonyt4]

Many thanks for your well considered follow up.

The contract is silent on this under notice/termination. The work hasn't dried up however with new UK origin Management they do not understand the full extent of my "duties" nor the extent of handover required.

I don't want to rock the boat even though I will be out of pocket however at the right time will let them know, perhaps in a more polite way that some would.

Regards.

[bullswool]

G'Day,

How will you be out off pocket, Tonyt4? And the penny-pinching?... sorry, maybe I have misread something... i don't know....

If you are paid out A/L at termination you are taxed more than if you take it from week to week. And, as mentioned, you'll be accuring leave while on leave. It's probably better for you to take the leave than not.

[Tonyt4]

Bullswool thank you for your reply. Out of pocket as using leave before leaving the company means no cash handover at end of employment. Working to final day gives a cash entitlement on leaving.My thoughts have been confirmed by Fair Trade. But as I said I probably wont rock the boat.