Too Much Annual Leave Is My Problem!

love2buy on 01/06/2017 - 07:04
Last edited 01/06/2017 - 08:51 by 1 other user

Hi guys, love the OB community. I've been working as a contracted delivery driver for about 8 years before I decided to change and move into part time job. What a night and day difference! Working by yourself sure was lonely and stressful. The part time job seemed like a holiday compared to what i did previously. (6 days vs 3 with no stress to take home).
Anyway I never felt a need to take the leave as I never had any before it. It seems so elusive and foreign to me that i never cared much about it until now. The manager points out I've got about 6 months of leave and its too much and should use it.

Several question comes to mind.

  1. Why does the manager want me to use the leave? It doesn't affect him nor the business i would think.

  2. Is accumulating too much leave and not spending it a good thing or a bad thing?

  3. If you were made to use it when and what is a smart time to use it. Any times to avoid?

  4. How did you use your annual leave if you don't mind sharing as nothing comes to mind.

Appreciate your comments.

Education & Work

Comments

  • Nugs on 01/06/2017 - 07:15
    +9

    1. from when I have asked the same at my work; it's a liability to the business having it hanging over them. a bit like an unpaid loan. Yes, they should have the money placed aside ready to use, but depending on the health of the business some may not have done so.

    2. yes&no. yes if business goes belly up and they do a runner (no entitlements for you), no if you like the idea of a decent payout if made redundant or like to have the flexibility to use later.

    3. school holidays (unless you have children that you want to take somewhere)

    4. I'm a saver too. normally short trips or time at home, I have a long 'to-do' list.

    • ihbh on 01/06/2017 - 07:51
      +8

      it's a liability to the business having it hanging over them

      It's a growing liability. The change in it hits the bottom line.

      Leaving aside you add days each year by not taking annual leave, over time as your pay increases, the liability increases with your pay. Say your pay doubles in 10 years after your first year, with the same number of annual leave days, the liability doubles for the company, because when you take annual leave, leave the company or are made redundant, they have to pay you out at your current pay.

      Also, a lot of fraud is detected when people go on annual leave.

      1. I used a big chunk when my baby was born to top up the parental leave.
    • goodcopbadcop on 02/06/2017 - 15:09

      It's a liability to the company because they have to hold the money aside that is owed to you in trust if you like. However, each year your pay rate increases - and this would mean that instead of paying it out to you back then at $X per hour - when you do take it after say 8 years of pay rises they will have to pay it out at $X + $Y rate per hour. Where do they come up with that additional $'s for all of the 6 months amount? The answer is - Out of their profits - so it comes 'off the bottom line' meaning it is costing them more for you not to take you annual leave when it falls due and eats into money that would have been for them.

      An employer can request and expect you to take it - it is within all Awards. Some companies won't let you keep anymore than one year's worth up your sleeve.

      Some companies have a clause in their Enterprise Agreement where you can actually buy leave - usually 2 weeks out of the 4 weeks that you are entitled to get. That is, you get the money instead of actually taking time off for it. Usually an employer will agree to that as they have to pay the leave out anyway - So you get the $'s and will pay marginal tax rate on it - so a bit more than normal - when you continue to work and get the $'s. In your case this is what I would suggest. Unless you have somethings that you really want to do - eg travel, study, do a renovation - if you end up taking 2 weeks here and 2 weeks there - you won't feel like it is a holiday.

      • Nugs on 02/06/2017 - 15:41

        "Where do they come up with that additional $'s for all of the 6 months amount? "

        interest earnt on the lump sum?

  • mskeggs on 01/06/2017 - 07:23
    +3
    1. it is a liability for the company. They would rather you keep a modest amount so it isn't all taken in a block causing a disruption, or paid out when you leave, causing a cashflow issue. That said, it doesn't really make a difference for anything but the smallest employer, but most places have policies.
    2. I think using leave for travelling is one of the best things in life. I never have enough leave.
    3. School holidays have higher prices for things like accommodation and flights.
    4. I go camping, travel abroad and do DIY around the house.

    What is your part time job, it sounds like a good one!

    • love2buy on 01/06/2017 - 08:09
      +1

      Yeah. Coles online delivery driver. Going places, delivering groceries and eating out. Get to see some very nice homes as well as the other side of the neighborhood. People very appreciative when you rock up and fairly forgiving if you happen to fall behind. Can get quite physical with amount of stairs you have to climb but overall fun job.

      • iamw0man on 01/06/2017 - 09:32
        +2

        I love the Coles drivers! Always good attitudes and helpful, great customer service. Kudos to you :)

  • sparkles on 01/06/2017 - 07:31
    +1

    You can either try to take the leave in one lump, take a month off every six months, or negotiate to be paid out the leave if your employer is open to that. You could do a combination off all three ie. take two months off now, take one month at Christmas, and get paid out 3 months worth.

    For the employer it's a liability on their books. If you resign they will have no choice but to pay this out in full so it's reasonable they would want you to use it up. It's possible that taking no breaks contributed to the stress you felt because you seemingly did a very long stint/s without any break.

  • CyberMurning on 01/06/2017 - 07:49
    +1

    What is your current job, looks very amazing one I would like to try too.

    • love2buy on 01/06/2017 - 08:24
      +2

      I like it as mentioned above but the pay won't impress. There will be days on end where the weather will be unforgiving. My tune might have been different if i had to do it full time tho.

  • slow on 01/06/2017 - 08:45

    Businesses also like people to take a block of leave on a regular basis, as it is good opportunity to see how you do your job.

    A lot of dodginess gets uncovered when people are away, and someone else is filling in

    • John Kimble on 01/06/2017 - 08:55

      That may be true, but do you really think it's a main goal? I would have thought it was primarily for financial reasons (as people have already stated) and maybe secondarily to try to reduce employee burnout?

      • CyberMurning on 01/06/2017 - 09:26

        both. to minimise risks, and debt at the same time. basically good for employers

        • John Kimble on 01/06/2017 - 10:13

          I'm referring to this comment https://www.ozbargain.com.au/comment/4738212/redir

          Ask people to taking leave to uncover deficiencies or fraudulent staff behaviour.

          I know it is a thing for some industries (financial/legal). But I wouldn't think it applies or is the primary focus for most requests to force leave.

  • dizzle on 01/06/2017 - 09:06

    Not taking leave can increase the amount they pay in a couple of ways

    AL is normally forecasted into your wages, so if you don't take leave, you still get paid for 52 weeks of the year with 4 weeks (for a standard job) of AL still owing. As discussed above if you then leave the business, they have to pay that out anyway.

    Some jobs have to pay you Leave Loading, so for any leave in the bank they are "taxed" for not having you take your leave.

    Many jobs will replace a 35 hour a week part time position with a 15-30 hour (just example hours) casual during the leave period so while your away, the replacement does not get paid as much (compared to the first example above)

    It is easier for a business to replace a worker for four months each year rather than for eight weeks every two years (especially if it's in all together).

    There is also the point of Annual leave being for your own health. Research has shown that people that don't take their annual leave are less productive and can affect the business.

    So therefore many businesses will "suggest" you take leave if you have more than 4 weeks owing, and make you take leave if more than 6 weeks.

  • Halo375 on 01/06/2017 - 09:07
    +1
    1. Why does the manager want me to use the leave? It doesn't affect him nor the business i would think.

    Probably because his HR manager is telling him that the financial liability is growing and they're sick of explaining why its so high.

    1. Is accumulating too much leave and not spending it a good thing or a bad thing?

    I think it's more of an opportunity. You have paid leave available to you, might be a good idea if you can to just take a month off. You've earned it.

    1. If you were made to use it when and what is a smart time to use it. Any times to avoid?

    Avoid school holidays at all costs. Figure out if you want to travel overseas, travel within Australia or just have a stay-cation. You might want to take time off to head back to school and do a course in something you're interested in. Or just spend the whole time enjoying a hobby you forgot.

    1. How did you use your annual leave if you don't mind sharing as nothing comes to mind.

    Travel mostly or using leaving to study for uni. I use leave to de-stress and learn to forget work for a few weeks.

  • CyberMurning on 01/06/2017 - 09:27
    +1

    geeee every post basically explaining/answering the same thing. ozb people are nice today. feel warm already.
    good community cant ask more in this chilling sydney weather.

    • [Deactivated] on 01/06/2017 - 09:55

      ill show you something cold

  • blonky on 01/06/2017 - 10:10

    Depending on if you fall under an Award or Fair Work Act, your employer can legally direct you to take leave if reasonable, such if you accumulate an excessive amount.
    I would say 6 months is fairly excessive considering most employees accumulate 4 weeks per year.

    However, under certain Awards, you can cash out annual leave instead of taking it, provided you retain a certain amount of leave after (say, 4 weeks) - if you were to consider this option

    • John Kimble on 01/06/2017 - 10:15

      Yep, lucky here. Some countries it's use it or lose it.

  • dasher86 on 01/06/2017 - 10:19

    one thing that hasn't been mentioned is that if an employee leaves the business with an Annual Leave entitlement, it need to be paid to the employee.
    This means additional oncosts for the business (eg payroll tax, workers comp, super etc) that would otherwise not had to pay if the employee took the leave.

    • [Deactivated] on 01/06/2017 - 10:59

      Some companies allow you to 'cash in' accrued leave … maybe not all of it, but some portion.

      One company I worked at, allowed you to cash in up to 2 weeks. The cash-in portion had to be put in your superannuation. I'm guessing this was to avoid payroll tax as @dasher86 pointed out.

  • cupcake on 01/06/2017 - 11:02

    Just take a couple of weeks off here and there. Enjoy that time off and relax.

  • try2bhelpful on 01/06/2017 - 11:08

    I'm amazed they let you accrue this much leave. Most large businesses are on your back if you get 2 months in - unless it is long service leave or you are planning a trip. Even if you don't want to/can't afford to travel then take some time off and just smell the roses. Join a gym, work around the house, day/overnight trips to nice towns.

  • Stewardo on 01/06/2017 - 11:23
    +1

    Buy a ticket somewhere nice and go spend three months living in a different country. Find a backpackers hostel or similar to keep costs down then just live off holiday pay.

  • biozet on 01/06/2017 - 12:25

    take your leave and go back to your old job for a while so you appreciate the new environment again when you go back

  • onetwothreefour on 01/06/2017 - 13:09

    If we accrue more than 20 days we get asked to take leave. (asked not told).

    I rarely have any spare leave as I like to use mine. I wish I loved my job as much as the OP appears to do.

  • Euphemistic on 01/06/2017 - 14:12

    I can imagine that working 3 days a week you probably wouldn't NEED to take time off, unless you wanted an extended holiday. I'm currently on a 9 day fortnight and having a spare day a fortnight makes it easy to get stuff done around the house etc.

    Take a holiday.

  • Qkumber on 02/06/2017 - 09:53

    I saved my annual leave for years while trying to get pregnant and telling work my husband and I were planning a big trip to Europe. When our baby finally arrived I had over 500 hours of annual leave which allowed me to either have a really long time on maternity leave or to work fewer days but still get paid full time. It is really nice to have a paid day off work each week to spend with my son and I actually am being paid to clean the house!

    • Euphemistic on 02/06/2017 - 16:00

      Flip side: I had heaps of long service leave owing to me when I left my last job. Had been saving it for a rainy day, but as I was starting a new job straight away got a lump sum payout which was taxed at the maximum rate because my income went up significantly for that year. If you are considering leaving your job, you should run it down as much as practical.

  • goosegog on 02/06/2017 - 15:44

    Love my Coles & Woollies delivery guys & girls. Apart from 2 ( one foreign guy who had never heard of deodorant, the other foreign guy with a big attitude problem, don't think they're with the company anymore). With regards to annual leave - take it whilst it's available - companies are falling by the wayside, going into receivership on a daily basis.

    • Euphemistic on 02/06/2017 - 16:00

      Especially little companies like Coles?

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