We all understand the value of taking time to rest and recharge. As business owners, there are many benefits of your employees taking annual leave, however managing leave requests can sometimes be a source of frustration!

It will help if your business has a leave policy in place so that employees understand expectations and the limitations around taking leave. Having a clear and simple documented procedure for requesting leave is also a good idea, and will guide both managers and employees, saving time and removing uncertainty around the process.

A leave policy will cover important information around employee leave entitlements, including:

  • the various types of leave available and when it is appropriate to take them,
  • how far in advance employees need to make annual leave requests,
  • any business shutdown periods where leave may need to be used, and
  • any periodic peak periods where leave is unlikely to be approved.

Its important to be aware of the award and any special leave provisions that may apply to your employees, ensuring these are included where appropriate.

In our upcoming articles, we will be covering some of the common questions that come up around leave, and the ways employers can effectively manage these situations. Today we are looking at:

What happens when multiple employees want to take leave at the same time?

It is inevitable, even in small to medium sized businesses, that you will have more than one employee wanting to take leave at the same time, particularly around certain times of the year, such as Christmas or during school holidays.

If there are periods throughout the year when you can predict the business is busy, and you know you won’t be able to meet the higher demands of the business without a full team, it may be a good idea to make it clear to your employees that leave requests won’t be accepted during these times. This can be communicated in the policy and when employees are hired, during the interview and employment offer. If this strict blanket approach doesn’t suit your business, you may want to simply state that leave requests are unlikely to be approved during peak business periods.

For any size business it can be challenging trying to cover the workload when you have multiple people away. Depending on the roles and how many people are skilled in performing the duties of different roles will affect the impact of employees taking leave concurrently. Businesses do need to consider their operational needs, and employers can reasonably decline leave requests from employees on this basis.

How do you decide which leave request to approve?

How managers determine which employee’s leave requests to approve or decline can be done in several ways, and to reduce any potential backlash or conflict, it is beneficial to communicate to employees the situation, and your approach in making the decision.

Some ways you may determine which leave requests to approve are:

  • First in, first served – this is the easiest approach and if documented in your policy, will encourage employees to give sufficient notice and help you with planning. Of course, you’ll need to advise how early you can accept leave requests as, it may not make sense to receive requests 6 or 12 months in advance!
  • The most important reason – you may determine that one person’s request for leave to attend their sister’s wedding is more important than another who wants to see a concert, or go on holiday. Opening up discussion and determining flexibility of dates can reduce the potential disappointment or backlash here.
  • Amount of leave each person has accrued – some employees take leave less frequently and if weighing up multiple requests you may prioritise approving requests from those employees who have more leave accrued and therefore carry a greater leave liability.
  • Number of recent leave requests – if some employees are taking annual leave more often than others, it may seem fair and appropriate to approve leave for those who haven’t taken a break in a while.

Other factors will come into play, such as the importance of the person’s role in maintaining essential business operations, however it is critical to note that taking annual leave is a workplace right so employers can not unreasonably refuse an employee taking leave. If you have one role that is critical to the business and the skills and knowledge are held by only one person, this is not likely to be considered reasonable grounds for refusing their leave request.

If you need help managing leave, or developing strategies to ensure your team is less impacted by employees taking leave, get in touch with our team today.