The Australian Hotels Association (AHA) is seeking to formalise the use of the huge stockpile of leave that is currently sitting on the balance sheets of Australian businesses.
At present, there are around 121 million days of accrued annual leave, which accounts for about $31 billion dollars worth of liabilities on business balance sheets.
“Recent efforts to reduce Australia’s stockpile of annual leave haven’t gone far enough, so the AHA is proposing a strategy that, if successful, would provide a much-needed boost to the tourism industry, which is feeling the effects of the global financial crisis, and save jobs,” said the AHA’s National chief executive officer, Bill Healey.
“The Association is proposing that for an initial three-year period, employees in Australian businesses would be able to carry a maximum of 300 hours of annual leave forward from one year to the next.
“Excess annual leave above this figure must be used by June of 2010 or it would be forfeited, but ideally, it shouldn’t get to that point because any leave entitlements above 300 hours would be used up. This would build on an independent trend of businesses that are already forcing staff to take leave.
“A properly planned strategy would see workers using up the excess leave to visit Australia’s many exciting holiday destinations.”
Under the proposal, exemptions would apply for an exigency of a particular business, sickness or administrative error. Employers would be required to provide an annual leave schedule to employees quarterly and a Leave Ombudsman should be appointed to provide advice and resolve disputes.
“Indications are that labour shortages will emerge soon after the economy recovers, therefore it is important for businesses to try to retain existing employees,” Healey said. “About 70 per cent of tourism expenditure comes from domestic visitors, so more people travelling within Australia will help maintain employment in the tourism sector and in other businesses through the multiplier effect.”
The AHA is promoting public debate on the plan and is keen to have further discussions with the trade union movement, other business leaders and tourism stakeholders about it.
“The AHA’s strategy would help to stimulate the economy at an opportune time and increase job security for workers at the same time,” Healey said.