M2012-07 Reduction of accrued recreation leave balances

Annual recreation leave is an entitlement provided for permanent and temporary employees to enable a period of rest and recreation away from the work environment every year. Taking regular annual leave enables employees to maintain their physical and mental health and has a positive impact on well being.

While legislation and industrial instruments aim to prevent a gradual increase in leave accruals, 12 per cent of employees have leave balances exceeding 40 days1.

Accumulated leave balances also increase the financial liability of the state to the value of $2.2 billion for General Government2.

To ensure that employees take sufficient rest time and to support continuing expense management, all Directors General and Chief Executives are to manage reductions to accumulated leave balances in their cluster agencies to ensure that employees reduce recreation leave accrual balances to 30 days or less by 30 June 2015.

In meeting this requirement Directors General and Chief Executives should make all reasonable attempts to stage reductions in employee leave accruals to a maximum of 40 days by 30 June 2013 and 35 days by 30 June 2014.

In managing these reductions Directors General and Chief Executives must take into account obligations in relevant industrial instruments and legislation and should make use of provisions which provide for directions to take leave, permit the cashing out of additional leave and place restrictions on access to flex leave.

Barry O'Farrell MP
Premier

This Memoranda has not superseded any other Memoranda

1 NSW Commission of Audit (2012) Interim Report: Public Sector Management, p.74

2 NSW Report on the State Finances 2010-11, Note 23 Employee Provisions, p.5-63