If an employee has an excessive leave accrual (over 8 weeks of leave), and has had this excessive balance for at least 6 months, then the employee and employer can come to an agreement to take some leave. If an agreement cannot be reached then the employer can direct the employee to take leave subject to the following conditions:
- the remaining balance of accrued annual leave must be no less than 6 weeks, then the maximum the employer can direct the employee to take is 2 weeks. If the employee has 10 weeks of accrued annual leave then they can be directed to take 4 weeks.
- the employer cannot direct the employee to take less than a week.
- the employee must be given 8 – 52 weeks’ notice of when the leave is to be taken.
These new reforms help business better manage annual leave. For assistance with drawing up cashing out agreements, please contact Idana Katz.