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Procedure: Purchased Annual Leave

General Information
Purpose To set out the University's procedures for staff members to purchase additional annual leave.
Relevant To Prospective Staff, Staff, Staff-Academic, Staff-Academic-Research, Staff-General
Related Topics Remuneration & Benefits (Staff), Leave & Absences (Staff), Staff
 
Authorisations
Responsible Officer Director Human Resources
Contact Area HR Help Desk
Relevant Dates
Effective Date 24 September, 2009
Date Approved 24 September, 2009
Next Review 24 September, 2012
   
Related Documents
Related Policies Staff Leave and Work, Study and Family Responsibilities
Related Forms Purchase Additional Annual Leave- Request to
 
Procedure
  1. The University aims to assist staff to balance work and personal commitments by allowing staff to:
  • Purchase additional leave of up to 24 weeks over two years; and/or
  • Substitute an additional 3 days' leave (pro rata) in lieu of their annual leave loading.
  1. Purchased Leave spreads the cost of the additional leave across a period of up to 24 months (52 pays).  Use the online calculator for an estimate of the impact the additional purchased leave will have on your fortnightly salary.
  2. The staff member is able to maintain their superannuation benefit by continuing their normal employee and employer superannuation contribution for the period of the purchased leave.

Eligibility

  1. Continuing, Continuing (contingent funded) and fixed-term (longer than 24 months) staff are eligible to apply for Purchased Leave.
  2. Staff who have excess annual leave (>20 days) or long service leave (> 65 days) are unable to apply for Purchased Leave unless they have approved arrangements to clear their excess leave, eg as part of a planned long-term break.

Conditions

  1. A staff member may purchase additional leave of at least one (1) week, in blocks of one week up to a maximum of 24 weeks.
  2. Approval is for 24 months and a new application must be made every two years.
  3. Deductions from salary will commence in the first available pay period after approval. Any permanent salary increases or decreases (e.g. EB increase, increment, promotion, reclassification, allowances, transfer) will affect the deduction amount and will be adjusted as soon as possible after the staff member's salary changes.
  4. Purchased Leave cannot be rolled over from one two-year period to the next.
  5. The cost of the additional leave including maintenance of normal superannuation contributions will be by fortnightly pre-tax deduction.
  6. Where staff with approved Purchased Leave move jobs within ANU, arrangements for the current 24 month periodwill be honoured. Business Mangers may wish to negotiate funds transfer.
  7. Purchased Leave can be taken in conjunction with all leave provisions. Where a public holiday falls within a period of Purchased Leave, the public holiday is not counted as a days leave.
  8. Purchased Leave can not be accessed at half pay.

Approval process - initial application

  1. The supervisor should assess applications for Purchased Leave in a positive way while taking into consideration operational requirements as well as the applicant's needs. The Request to Purchase Additional Annual Leave form, once approved, must be submitted to Remuneration and Benefits Branch.
  2. If the delegate does not approve the application, the supervisor will notify the applicant of the reasons.

Accruing purchased leave

  1. Once the purchasing of additional leave has been approved, the accruals will be added to the staff member's leave balance and will show as a separate accrual leave type on HORUS.
  2. When applying for annual leave, the purchased annual leave accruals will be deducted from the staff member's Purchased Leave accrual first and then any other annual leave accruals will be deducted.
  3. A staff member maywithdraw from an approved Purchased Leave arrangement, by writing to their supervisor. If the withdrawal isagreed, the supervisor will notify the Remuneration and Benefits Branch who will conduct a reconciliation and make appropriate salary adjustments.
  4. If a staff member resigns from ANUor takes long-term leavewhile an approved Purchased Leave arrangement is in place, reconciliation will be undertaken and appropriate salary adjustments made.
  5. At the end of the purchased leave period, Remuneration and Benefits Branch will carry out a reconciliation of the staff member's purchased leave and the leave actually taken. Where there is a discrepancy the staff member will be advised of the debit or credit. If a salary adjustment is necessary, it will be made in the next available pay period.

Taking purchased leave

  1. Where practicable, all staff are required to submit an online annual leave application (HORUS) in advance of the leave being taken. The granting of this leave is subject to the supervisor's agreement and the proposed dates may need to be negotiated in light of operational requirements.

Purchasing additional leave with leave loading

  1. Staff may choose to purchase 3 days' additional annual leave instead of receiving the annual leave loading. Staff should submit a Request to Purchase Additional Annual Leave form, by the end of November each year. The additional 3 days' leave will be credited to the leave balance in the second pay of the following calendar year.
  2. Staff with less than the full 12 months leave loading credit may convert their annual leave loading and receive proportional leave in lieu.
  3. Part-time staff may convert their pro-rate annual leave loading and receive proportional leave in lieu.
  4. Staff should note that if they elect to purchase 3 days' additional annual leave instead of receiving the annual leave loading, they will not receive the benefit of the concessional tax treatment currently afforded to leave loading payments.
 
 
Attached Files:
Purchased_Leave_Estimator_21_Sept_09.xls (30 KB)
 
Modification History

Procedure updated to extend purchased leave arrangements in accordance with the provisions of EB.