I would say principled rather than paranoid.
The answer to your question would require consideration of the specific contract terms and whether these give them a reason to know this information.
If it is simply that the work will be done and covered by someone else when you are not available then annual leave is irrelevant.
If it provides that you will cover the work, but someone else when you are on leave, then they are entitled to know that the periods of cover are leave periods.
In essence does the agreement give them a basis for establishing need to know? If not stick to your principles !
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