Frequently Asked Question : 

"As an employer, can we direct an employee not to work for another employer whilst they are absent on a period of annual leave?"

No.

The terms and conditions relating to annual leave are regulated by the Fair Work Act 2009.
 
As the Fair Work Act 2009 does not provide any such restrictions on this matter, an employer is unable to control the activities of an employee while they are absent on a period of approved annual leave. 

Given this, an employee would be able to perform work for another employer provided that the work performed was not in conflict in any way to the work that they perform in their usual employment with you. 

Information in HR Advice Online guides and blog posts is meant purely for educational discussion of human resources issues. It contains only general information about human resources matters and due to factors such as government legislation changes, may not be up-to-date at the time of reading. It is not legal advice and should not be treated as such.