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How should leave accruals be handled when a staff member has given notice?

  1. If the employee will work through the notice period, leave must accrue as normal to the last day of work. Leave does NOT accrue on the leave hours paid out on the final pay
  2. If an employee gives notice, and it is decided to pay them out, (In Lieu Of Notice – ILON), leave accrual stops on the last day of actual work.
  3. If an employee is put on “gardening leave”, instead on ILON, leave does not accrue.
  4. It is not legal in Australia to force an employee to use their Annual Leave to reduce the ILON. Both ILON and Annual Leave must be paid if an employee is not allowed to work out their notice period.