In Short
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Employees can use accrued annual leave for study purposes, but employers can refuse if business needs require it.
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Paid study leave is not a legal entitlement under the National Employment Standards.
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Employers must have reasonable business grounds to refuse study leave and should be able to justify their decision.
Tips for Businesses
Ensure your leave policies are clear and consistent, balancing employee rights with business needs. Always review applicable awards and contracts for specific study leave provisions. When refusing a leave request, document the legitimate reasons for doing so and explore alternative arrangements that work for both the business and the employee.
When employees approach you requesting time off for educational purposes, the question of whether you must provide paid study leave arises. The answer is not straightforward, and understanding your legal obligations is essential for making informed decisions that protect both your business interests and your employees’ rights. This article considers when your employees may request study leave and the considerations when approving it.
What Is Study Leave?
Study leave may arise in circumstances where an employee takes time off work to pursue education, training, or professional development while typically maintaining their employment status. Study leave may include ongoing education relevant to their employment or a short course to build on existing skill sets.
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Employees’ Directive to Take Study Leave
Where an employee has elected to undergo further studies that are not a directive of the employer, it is typically expected that the employee will not be reimbursed for the study leave. Instead, the employee would take the time off as annual leave.
Additional considerations may arise when the employee is covered under a modern award that includes provisions for study leave. In such circumstances, you would need to comply with your obligations under the award. Further, the employee’s contract may include provisions around study leave that should be reviewed.
Continue reading this article below the formWhat Are My Obligations to Approve Leave?
While the NES does not provide for study leave, an employee may still take leave for their studies. The employee may seek to use their accrued annual leave for study purposes. As an employer, you cannot refuse to provide an employee’s annual leave for study purposes if they have sufficient leave accumulated and it is reasonable for them to take the leave.
Approving study leave is similar to approving annual leave in that you would consider the reasonableness of the leave. Here, you would review the business needs and determine if you can accommodate the request. You can only reasonably refuse the employee’s request for leave.
What Constitutes Reasonable Business Grounds?
You retain the right to refuse leave requests when you have reasonable business grounds. For instance, if the requested leave falls on the busiest day of the year for your retail operation and you need all staff present to manage customer demand, this would likely constitute a reasonable business justification for refusing the request.
Other scenarios that might justify refusal include:
- critical project deadlines requiring full team participation;
- periods of already reduced staffing due to other approved leave;
- essential business operations that would be compromised by the employee’s absence;
- insufficient notice has been provided and you cannot make alternate arrangements; or
- peak service periods where customer commitments cannot be met with reduced staff.
While you cannot unreasonably refuse annual leave for study purposes, you may negotiate when an employee can take leave, depending on your business needs.
You may consider:
- proposing alternative dates that better suit business operations;
- working with employees to find mutually acceptable timing;
- staggering leave across team members to maintain adequate coverage; and
- planning around busy periods or critical business activities.
Refusals of annual leave must be reasonable as employees have a legal right to access their accrued annual leave, and the purpose for which they use this leave is generally their choice.
Understanding “Unreasonable Refusal”
You must not unreasonably refuse an employee’s request for study leave.
When Study Leave Becomes Mandatory
While the NES does not provide provisions surrounding study leave, it is crucial to review the employee’s contract, and where they are covered by a modern award, your obligations within that award. Some awards may specify study leave provisions. In such cases, you would need to comply with your obligations under the award.
Practical Tips for Compliance
- Review Your Industrial Arrangements: Examine your applicable Award and individual contracts to identify any study leave obligations beyond the NES.
- Develop Consistent Policies: Create clear, fair procedures for handling leave requests that balance business needs with employee rights.
- Document Your Decisions: When refusing leave requests, ensure you can demonstrate reasonable business grounds for your decision.
- Consider the Broader Employment Relationship: Remember that professional development often benefits both employee and employer through improved skills and job satisfaction.
Key Takeaways
While you are not automatically required to provide paid study leave under Australian employment law, you cannot unreasonably prevent employees from using their accrued annual leave for educational purposes. The key is understanding the balance between legitimate business needs and employee entitlements, while remaining aware that your specific modern awards may create additional obligations beyond the minimum standards.
If you are an employer considering leave entitlements, our experienced employment lawyers can assist as part of our LegalVision membership. You will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 1800 532 904 or visit our membership page.
Frequently Asked Questions
While paid study leave is not required by law, you can choose to provide it as a benefit or in line with specific employment contracts or modern awards.
Part-time employees are entitled to request study leave just like full-time employees. However, the leave granted should be proportionate to their work schedule and accrued leave.
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