Australian workers could soon be entitled to double their annual leave at half pay under a new proposal backed by unions and major business bodies.
The Australian Council of Trade Unions (ACTU) has unveiled a plan that would introduce the right to greater licensing flexibility into industry concessions.
While the Australian Chamber of Commerce and Industry (ACCI) and the Australian Industrial Group support the plan in theory, finer details need to be ironed out before it is introduced.
The ACCI said employers should also reserve the right to deny an employee’s request to double their leave as it could have “huge ramifications”.
The Australian Industry Group agreed, adding that the new rule should only be granted if both the employer and employee agree.
A new proposal backed by unions and major business bodies could allow Australian workers to take twice as much annual leave if they receive half pay.
ACTU secretary Sally McManus said the new rule “will allow workers more flexibility to take longer leaves without any penalty to the employer”.
“We hope that this request is motivated by the needs of the worker and receives due consideration by the employer,” Ms. McManus told the Australian Financial Review.
“As with all leave, it must be properly recorded and the worker must be clear about how this would affect any future leave and extraordinary contributions.”
Australian Industry Group chief executive Innes Willox said half-paid furlough was a “modest step in the right direction” but warned employers needed to be taken into account.
“It is essential that it can only be used if an employer and employee agree to it,” he said.
Willox added that doubling furloughs could compound employers’ difficulties in striking a balance between filling out a roster and granting furloughs.
ACCI labor relations director Jess Tinsley said the proposal could also create more stress for employers during peak seasons or when they are short-staffed.
Business groups support the push for more flexible leave arrangements on the condition that employers reserve the right to deny double leave.
Ms McManus agreed that half-paid leave should be an agreement between employer and employee, but should only be denied for “reasonable commercial reasons”.
“Of course, we would say that’s fair,” he said, according to Nine. “But not just because it doesn’t bother you.”
The Fair Work Commission (FWC) already referred to the proposal during an April 3 hearing on the upcoming Modern Awards Review.
FWC vice-president Bernadette O’Neill said she had “identified that there may be some consensus on… annual leave to be taken at half pay”.
However, the issue was not discussed as it was delayed until it can receive its own hearing at a later date.
Furloughed interested parties with the half-pay issue and myriad others being monitored in the commission’s review have until April 26 to submit their opinions.
The FWC will present its final report around June 28.