Payment for annual leave
Annual leave is paid at the employee's current base pay rate for all hours of leave taken. This doesn't include extra payments such as overtime rates, penalties, allowances and bonuses.
On this page:
- Payments for annual leave and annual leave loading
- Annual leave when employment ends
- Annual leave when sick or injured
- Tools and resources
- Related information
Payments for annual leave and annual leave loading
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.
Annual leave when employment ends
When employment ends, employers have to pay their employee for any unused annual leave they've accumulated during their employment.
The annual leave payment has to be the same amount that the employee would have received if they’d taken the annual leave during their employment. For example, if an employee would have been entitled to annual leave loading or other payments when they took their annual leave, these loadings and other payments have to be included in the final payment. These payments apply even if an award, registered agreement or employment contract says that they don’t.
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