Annual leave (also known as holiday pay) allows an employee to be paid while having time off from work.
The entitlement to annual leave comes from the National Employment Standards (NES).
Awards or registered agreements can't offer less than the NES but they can give more annual leave.
Who is entitled to annual leave?
All employees (except for casual employees) get paid annual leave.
How much annual leave does an employee get?
Full-time and part-time employees get 4 weeks of annual leave, based on their ordinary hours of work.
Example: annual leave for part-time employees
Jane is a part-time employee who works 20 hours per week for a year.
At the end of the year, she is entitled to 80 hours of annual leave (the equivalent of 4 weeks work for her).
Shiftworkers may get up to 5 weeks of annual leave per year.
Find information about annual leave for shiftworkers in your award by selecting from the list below.
How does annual leave accumulate?
Annual leave accumulates from the first day of employment, even if an employee is in a probation period.
The leave accumulates gradually during the year and any unused annual leave will roll over from year to year.
Annual leave accumulates even when an employee is on paid leave including paid annual leave and personal leave.
Annual leave does not accumulate when the employee is on:
- unpaid annual leave
- unpaid sick/carer's leave
- unpaid parental leave.
The Australian Government's Paid Parental Leave Scheme is not considered to be paid leave. An employee does not accumulate annual leave while being paid by the Paid Parental Leave Scheme.
Source reference: Fair Work Act 2009 (Cth) section 87
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