Annual leave: Big bank to give staff more holidays in return for loyalty

Could this become the new normal? One of Australia’s biggest companies is giving staff an extra week every year of paid annual leave — called “loyalty leave” — but with a catch.

One of Australia’s biggest employers is giving most of its staff an extra week of paid annual leave every year.

ANZ will now give its staff five weeks of paid annual leave every year, with the bonus week to be called “loyalty leave”.

TERRY MCCRANN: CASH RATE WILL BE CUT NEXT MONTH

CONFIDENCE IS KEY, SAYS ANZ CHIEF SHAYNE ELLIOTT

The extra week will be available to staff who have had more than three years of consecutive service at the end of the group’s financial year, on September 30.

It will be offered to employees in more than 20 countries across the bank’s operations. But there is a catch.

ANZ has about 40,000 employees. Picture: Hollie Adams.

To qualify, employees in Australia and various other “major locations” must ensure their annual leave balances every September 30 are no higher than the amount of leave they receive each year.

That is, an employee who receives 20 days of standard annual leave each year can have no more than that amount “in the bank” on September 30 in order to be eligible for loyalty leave.

The bank has discussed the initiative with the Finance Sector Union, which is believed to be comfortable with the policy.

In a statement, ANZ said the extra leave was in part designed to help the bank attract and keep talented staff.

It put the group “in a market-leading position compared to other major Australian companies”, the bank said.

It has about 40,000 employees, and two in every three of them are expected to qualify for the bonus week.

ANZ human resources chief Kathryn van der Merwe said many employees “have told us that they want more flexibility to focus on what’s important outside work, and one way we’re giving them that is to provide more paid time off”.

ANZ is led by chief executive Shayne Elliott.

“Regular annual leave is essential as it allows our people to spend time doing what’s important to them personally, as well as to rest and recharge,” Ms van der Merwe said.

“While we considered a number of potential enhancements to various employee benefits, annual leave is a ‘core’ benefit that is relevant to all permanent employees, regardless of seniority, gender, or status as a parent.”

ANZ, which is led by chief executive Shayne Elliott, said it was following an international trend of offering more flexibility in the workplace.

About two thirds of employees already worked “flexibly through part-time work, lifestyle leave, job sharing, flexible hours and a compressed work week”, the bank said.