Is Australia's 5-Week Annual Leave a Step Forward?

Australia is revisiting the idea of extending annual leave from four to five weeks. This proposal, championed by the Shop Distributive and Allied Employees Association and recent deals with companies like IKEA, aims to benefit workers' productivity and wellbeing. Comparatively, Australia sits in the middle among OECD countries regarding annual leave days.

Melbourne, Jul 2 (The Conversation) – A decade ago, Australia's Productivity Commission recommended periodic reviews of the nation's industrial relations system to consider extending the existing 20 days of paid annual leave. Fast forward to today, the push for a five-week annual leave is gaining momentum.

The Shop Distributive and Allied Employees Association is advocating for an extra week of leave for 1.3 million retail and fast food workers, highlighting a significant increase in support for the measure. Proponents argue it could enhance productivity and offer workers a fairer share of productivity gains.

While Australia is currently mid-ranked in annual leave among OECD countries, the debate over extending leave is far from settled. The potential 2% rise in labor costs is a factor, but the anticipated boost in worker morale and productivity could offset these expenses. As IKEA and other corporations offer additional leave, the conversation continues to evolve, with implications not just for permanent but also casual employees.

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