Payment for annual leave
Due to the impacts coronavirus is having on the community, a number of unions and employer associations are applying to the Fair Work Commission to increase award flexibility.
This may affect the entitlements on this page.
For a list of determinations and to see if your award is affected go to Temporary changes to workplace laws during coronavirus.
Annual leave is paid at the employee's current base pay rate for all hours of leave taken, not including extra payments such as:
- overtime rates
- penalties
- allowances
- bonuses.
Awards, enterprise agreements and other registered agreements can set out:
- a different method of payment for annual leave
- that annual leave loading is paid for annual leave.
Find information about payments for annual leave and annual leave loading in your award by selecting from the list below.
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Annual leave when employment ends
When employment ends, an employee has to be paid out all unused annual leave as part of their final pay.
If an employee gets annual leave loading during employment then it also has to be paid out when employment ends. Annual leave loading is paid out even when an award, registered agreement or employment contract says that it’s not.
Find out more about what’s included in an employee’s Final pay.
Annual leave when sick or injured
If an employee is sick or injured while on annual leave, the employee can use their paid sick or carer's leave entitlement instead of using their annual leave.
The employer can still request the employee provide notice and evidence when taking sick or carer's leave while on annual leave.
An employer can’t direct an employee to take annual leave while they’re taking sick or carer’s leave.
Source reference: Fair Work Act 2009 s.89 
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Check out our Help resolving workplace issues section for practical advice on:
- figuring out if a mistake has been made
- talking to your employer or employee about fixing it
- getting help from us if you can't resolve it.
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