Annual Leave Policy

Purpose

This policy outlines the University’s expectations regarding the taking and management of Annual Leave. Its primary objectives are to:

• ensure compliance with the Holidays Act 2003 and the University's employment agreements
• guide accurate recording and reporting of annual leave
• minimise the accumulation and financial liability of unused leave carried forward
• assist the University to meet its obligations as a good employer
• encourage all staff to maintain a positive work life balance by taking their full annual leave entitlement in the year it falls due.

Organisational scope

All eligible employees of the University of Otago.

Definitions

Actual Balance

An employee’s leave balance as of 1 December, less any leave taken or future leave bookings made since that date.

Annual Leave Entitlement

The annual allocation of leave that becomes available to an employee on 1 December each year, to be used within the following 12 months. Annual leave entitlements are outlined in each employee's employment agreement.

Approving Manager

The manager who has delegated authority to provide final approval on leave-related matters.

Carry Forward (Excess) Leave

Any previous leave entitlement not used by 30 November is “carry forward (excess) leave” e.g. any portion of the leave entitlement allocated on 1 December 2024 that has not been taken by 1 December 2025 (excluding the new entitlement allocated 1 December 2025).

Delegated Authority

The authority granted to positions within the University to make decisions on behalf of the University within a defined scope of responsibility.

Line Manager

The direct supervisor who is responsible for day-to-day management of the employee making a request for annual leave.

Pro-rata Balance

The amount of leave an employee has accumulated since the last 1 December anniversary date, or their start date, whichever is the most recent.

Total Balance

The amount of leave an employee is currently able to apply for. This is the actual and pro-rata balances added together.

Content

1. Responsibilities

   1. The amount of annual leave each employee is allowed is in accordance with their Employee Agreement and the Holidays Act 2003.

2. Taking Annual Leave

   1. Employees are responsible for managing and taking their annual leave entitlement each year.
   2. Employees may anticipate annual leave, i.e., take their pro-rata balance before it becomes an entitlement. This is subject to the Approving Manager’s approval.
   3. Special arrangements may be made where relationships with external agencies such as Health New Zealand | Te Whatu Ora affect standard leave processes.

3. Recording Annual Leave

   1. The Staff Web Kiosk is the primary system for leave recording, except in approved exceptional cases with alternative arrangements.

4. Managing Annual Leave

   1. Heads of Department and Managers are responsible for ensuring that employees are given reasonable opportunities to use their annual leave.
   2. Leave must be managed to avoid excessive accumulation, which can affect employee wellbeing and institutional financial performance.

5. Carrying forward excess Annual Leave

   1. Employees can carry forward an excess annual leave balance up to 10 days.
   2. Employees with annual leave balances greater than 10 days are required to be reduced below 10 days by taking leave from the first normal working day following 1 January in the following year, for a period sufficient to reduce the excess leave balance to under 10 days.
   3. For employees with clinical responsibilities the leave will be taken at the first available opportunity following the New Year, taking into account any rostered clinical duties.
   4. If agreement is not able to be reached regarding the taking of annual leave, Divisional or Faculty managers may require employees to take annual leave.
   5. In exceptional circumstances, employees may be approved to carry forward excess annual leave.
      1. Final approval is provided at the discretion of the Approving Manager.
      2. If approval is declined, then the requirements of this section apply.

6. Close down

   1. Where a close down period is observed between Christmas and New Year, or during some other time during the year, it is expected that employees take annual leave at that time.
   2. Employees who do not have enough accrued leave at the time of the close down period will either use their annual leave entitlement in advance or, if they wish, leave without pay will be granted.
   3. In relation to employees with clinical duties with Health New Zealand | Te Whatu Ora, the close down period does not apply. In this circumstance, employees are not expected to be on annual leave from the University and will be paid in the usual way.
   4. Payroll Services must be advised when any employee, including those with clinical duties, works during a close-down period.

7. Sickness or bereavement occurring while on Annual Leave

   1. Where an employee or a person dependent on them becomes sick when an employee is on annual leave or long service leave, then the University will permit the period of sickness to be debited against their sick leave entitlement, provided a medical certificate is produced for the sick leave.
   2. Where bereavement occurs, including pregnancy loss, the University will permit the period of bereavement leave to be debited against their bereavement leave entitlement. If paid special bereavement leave is not appropriate, then annual leave or leave without pay should be grated, but as a last resort.

8. Family violence occurring while on Annual Leave

   1. Where an employee or a person dependent on them suffers family violence when an employee is on annual leave or long service leave, then the employer will permit the period of leave to be debited against their family violence leave entitlement, in accordance with the terms and conditions of the Domestic Violence Policy.

9. Cashing out of Annual Leave

   1. In accordance with the University’s position on encouraging a positive work-life balance for employees and in accordance with the provisions in the Holidays Act 2003, the University does not allow annual leave to be cashed out.

10. Additional Leave

    1. Subject to prior approval, additional leave may be purchased by eligible employees in accordance with the terms of conditions of the Additional Leave Policy.

Related policies, procedures and forms

• Additional Leave Policy
• Annual Leave Guidelines
• Domestic Violence Policy
• Employment Agreements and Conditions
• Good Employer Policy
• Holidays Act 2003
• Leave Delegations
• Request to carry forward excess Annual Leave – Approval request form

Contact for further information

For advice and support regarding this policy please contact your Division’s designated Human Resources Manager.

If you have any queries regarding the content of this policy or need further clarification, contact:

HR Manager, Promotions and Remuneration
Email rem.admin@otago.ac.nz