Calculating annual leave

Under the NES, an employee’s entitlement to annual leave accrues progressively during a year of service and accumulates from year to year.

Leave is based on the number of hours worked and  continues to accumulate while employees are taking paid annual leave and paid personal leave.

You can use the Leave Calculator to calculate annual and personal leave entitlements under the NES.

As long as an employer can find out an employee’s entitlement when requested, it’s generally enough to accrue leave on any regular basis, unless an applicable award or agreement specifies otherwise. It is best practice for an employer to record the accrual of leave at least one a month (or more often if required by the applicable award or agreement).

Find out more about record-keeping requirements, including leave records, on the Time & wages records page.

Example

Yandy runs a small business and employs Kirsty on a full-time basis. Yandy records Kirsty’s accrued leave entitlements at the end of every month.

In the middle of July, Kirsty asks about her current leave entitlements as she wants to take a holiday. Yandy must calculate Kirsty’s current leave based on all the hours she has worked including any hours she’s worked in July.

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Page last updated: 17 Sep 2010