How to manage annual leave requests
A complete guide to approving or reasonably refusing annual leave requests under Australian workplace law. Learn your obligations and make fair, consistent decisions.
Written by
Georgia Morgan
General information only – not legal advice
This guide provides general information about managing annual leave requests in Australia. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
The key Fair Work rule
An employer must not unreasonably refuse an employee's request to take annual leave.
This means you can refuse annual leave, but only if you have genuine, reasonable business grounds. You must also respond promptly to requests – leaving employees waiting creates uncertainty and may itself be unreasonable.
What you need to know
Annual leave is a fundamental entitlement under the National Employment Standards (NES). Full-time employees are entitled to 4 weeks paid leave per year, and part-time employees receive pro-rata entitlements.
While employees have the right to take their accrued leave, employers can manage when leave is taken by agreeing timeframes with employees. The key is that both parties should agree – and any refusal must be for reasonable operational reasons.
6 steps to annual leave requests management
Follow this process to make fair, consistent decisions on annual leave requests.
Establish a clear leave request process
Create a documented procedure for how employees submit and managers approve leave requests.
Tips:
- Define the required notice period for leave requests (e.g., 4 weeks)
- Specify the method for requesting leave (online system, form, email)
- Set response timeframes for managers (e.g., within 5 business days)
- Include the process in your employee handbook and onboarding
Review the request against business needs
Assess whether approving the leave would impact operations or create coverage issues.
Tips:
- Check the roster for that period - who else is working?
- Review any existing approved leave that overlaps
- Consider peak periods, events, or projects that may be affected
- Think about whether the role can be covered by others
Check the employee's leave balance
Verify the employee has sufficient accrued leave to cover the requested period.
Tips:
- Full-time employees accrue 4 weeks (20 days) per year
- Part-time employees accrue leave pro-rata based on hours
- Leave accrues progressively throughout the year
- Check if leave in advance is permitted under your policy
Apply fair and consistent criteria
Use objective criteria when deciding whether to approve or refuse leave.
Tips:
- First-in-first-served is generally the fairest approach for competing requests
- Consider rotating access to popular leave periods (Christmas, school holidays)
- Document your decision-making criteria in your leave policy
- Avoid discrimination based on personal circumstances
Respond to the request in writing
Provide a clear written response approving or reasonably refusing the request.
Tips:
- Respond within your stated timeframe (and promptly)
- If refusing, clearly explain the reasonable business grounds
- Offer alternatives if possible (different dates, shorter period)
- Keep a copy of the request and response for records
Update rosters and records
Once approved, update all relevant systems and notify affected team members.
Tips:
- Update the roster to show the leave period
- Adjust the employee's leave balance
- Notify team members who may need to cover shifts
- Set reminders if handover or coverage planning is needed
Simplify leave management
RosterElf lets staff request leave through the app, with automatic balance checks and manager approvals. Built for Australian small businesses.
When can you refuse leave?
Examples of reasonable and unreasonable grounds for refusing annual leave requests.
Peak business period
ReasonableExample: A retail store during Christmas shopping season
Refusing leave during documented busy periods is generally reasonable if communicated in advance.
Too many staff already on leave
ReasonableExample: Three team members already approved for the same week
Maintaining minimum staffing levels is a valid business reason.
Critical project deadline
ReasonableExample: Employee is key to a project launching that week
Must be a genuine deadline, not ongoing workload.
Insufficient notice
ReasonableExample: Leave requested for next week without prior agreement
Must be consistent with your documented policy.
Manager dislikes the employee
UnreasonableExample: Personal preference or relationship issues
Personal bias is never a reasonable ground for refusal.
No specific reason given
UnreasonableExample: "It doesn't suit us right now"
Employers must have genuine operational reasons.
Important: When refusing leave, always provide the specific reason in writing. Generic refusals or delays without explanation may be considered unreasonable and could lead to disputes.
Tips for effective leave management
Follow these practices to handle leave requests smoothly and avoid disputes.
Document your policy
Have a written leave policy that explains the request and approval process, notice requirements, and criteria for decisions.
Use leave management software
Digital systems track balances, prevent double-booking, and create audit trails automatically.
Respond promptly
Don't leave employees waiting. Set and meet response timeframes - this shows respect and allows planning.
Communicate blackout periods
If certain periods are restricted, communicate this upfront so employees can plan around them.
Track leave trends
Monitor leave patterns to identify issues like excess accruals or coverage problems before they escalate.
Train your managers
Ensure managers understand Fair Work requirements and your policy for consistent decision-making.
Related guides
More resources for managing leave and HR processes.
Frequently asked questions
- Yes, but only if the refusal is reasonable. Valid business reasons include operational requirements, peak periods, or insufficient staffing coverage. You cannot refuse leave for discriminatory reasons or without genuine grounds. Always document your reasons for refusal.
- Reasonable grounds include: documented peak periods, too many staff already on leave, critical project deadlines, or insufficient notice. Unreasonable grounds include: personal dislike, vague reasons, or inconsistent application of rules. The Fair Work Commission considers each case on its facts.
- There's no fixed legal requirement for notice periods. Most businesses require 2-4 weeks notice for regular leave and longer for extended periods. Check your award or enterprise agreement for any specific requirements. Your policy should be reasonable and consistently applied.
- Apply consistent, fair criteria. First-in-first-served is commonly used. You could also rotate access to popular periods (like Christmas). Whatever approach you use, document it in your policy and apply it consistently to avoid discrimination claims.
Regulatory sources
This guide is aligned with official Australian workplace regulations.
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