Payment for annual leave

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.

Building and Construction Award

Based on what you've told us, it looks like you're covered by the Building and Construction General On–site Award [MA000020].

When they go on annual leave an employee has to be paid the amount they would have been paid for working ordinary hours if they hadn't been on leave. This amount includes any allowances that apply. 

Find out what allowances apply by using our Pay and Conditions Tool.

Annual leave has to be paid:

  • before the employee goes on leave, or
  • in the usual pay cycle, if the employee is paid by electronic funds transfer (EFT).

Annual leave loading

An employee who gets annual leave gets paid the amount they would have been paid for working ordinary hours plus the higher of:

  • a 17.5% loading or
  • the shift loadings the employee normally gets.

To find out more about who this award applies to, go to the Building and Construction Award summary.

Source reference: Building and Construction General On-site Award [MA000020] clause 31.2 external-icon.png

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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 external-icon.png

Think a mistake might have been made?

Mistakes can happen. The best way to fix them usually starts with talking.

Check out our Fixing a workplace problem 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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