Unions want workers to be able to double their annual leave by taking it at half pay. 

Negotiations between trade unions and employer groups under the oversight of the workplace umpire are moving ahead. 

The Australian Council of Trade Unions (ACTU) is pushing the change, and while consensus on the extended half-pay deal is near, there is a divide over the conditions under which employers can deny such requests. 

Employers seek the authority to have full discretion in these matters, while unions want for a system where refusals must be based on reasonable grounds.

ACTU secretary Sally McManus says the new arrangement could give workers “more time and flexibility to manage their caring responsibilities and balance work and care”.

“We would expect this request to be driven by the needs of the worker and given proper consideration by the employer,” she has told reporters.

Despite provisions in the Fair Work Act for such arrangements, very few industry awards currently allow annual leave at half pay. 

During the COVID-19 pandemic, the Commission granted employees the right to take leave at half pay to prevent unpaid leave during illness. However, these entitlements have lapsed post-pandemic.

Australian Industry Group Chief Executive Innes Willox has voiced concerns from the employer's perspective, noting the challenges that extended staff absences could pose. 

“Awards should allow this kind of flexible leave arrangement to be implemented, but it is essential that it is only able to be used if an individual employer and employee agree to it,” Willox stated.

Jess Tinsley, the workplace relations director at the Australian Chamber of Commerce and Industry, has described the amendment as a "commonsense change" but cautioned about its potential impact during critical business periods.

The Fair Work Commission is considering a range of changes, which also include potential rights to request work from home and the expansion of ordinary hours for remote workers.

There is a rough plan to finalise new award changes by mid-year.