About Annual Leave in Australia
Understanding your annual leave entitlements is important for all Australian employees. Here's what you need to know about annual leave in Australia.
The National Employment Standards (NES) establish the minimum leave entitlements for all employees in Australia. Under the NES, full-time employees are entitled to 4 weeks of paid annual leave per year, while part-time employees accrue leave on a pro-rata basis.
Shift workers may be entitled to 5 weeks of annual leave per year. This typically applies to employees who regularly work shifts including Sundays and public holidays.
Annual leave accumulates from the first day of employment and rolls over from year to year if not taken. When employment ends, unused annual leave must be paid out to the employee.
Annual leave in Australia accrues progressively throughout the year based on your ordinary hours of work. For a full-time employee working 38 hours per week, this equates to approximately 2.923 hours of leave for each week worked.
Part-time employees accrue leave on a pro-rata basis. For example, if you work 19 hours per week (half of a full-time load), you'll accrue annual leave at half the rate of a full-time employee.
Casual employees generally do not receive paid annual leave, as they receive a casual loading on their hourly rate instead.
Leave Loading
Many employees in Australia are entitled to annual leave loading, which is typically set at 17.5% of their base salary for the period of leave taken. This entitlement usually comes from awards, enterprise agreements, or employment contracts.
Leave loading was originally introduced to compensate employees for lost opportunity to work overtime while on leave. It's not automatically provided under the NES but is common in many industries.
Public Holidays
If a public holiday falls during your period of annual leave, it is not counted as annual leave. Instead, you should be paid for the public holiday at your base rate of pay.
Public holidays vary between Australian states and territories, so it's important to be aware of the public holidays that apply in your location.
Cashing Out Annual Leave
In some circumstances, employees and employers can agree to "cash out" annual leave (receiving payment instead of taking time off). However, strict conditions apply:
- There must be a written agreement each time leave is cashed out
- An employee must maintain a balance of at least 4 weeks of leave after any cashing out
- The payment for cashed-out leave must be at least the same as what the employee would have received if they had taken the leave
These restrictions help ensure that employees still take adequate breaks from work for their wellbeing.
Frequently Asked Questions
How many days is 100 hours of annual leave?
100 hours of annual leave typically equates to 12.5 days for a full-time employee working 8 hours per day. This calculation may vary depending on your standard working hours.
How much annual leave do you accrue per week for 40 hours?
For a 40-hour work week, you would accrue approximately 3.08 hours of annual leave per week, which equates to 4 weeks (160 hours) of annual leave per year.
Who is entitled to annual leave?
All employees in Australia are entitled to paid annual leave, except for casual employees. Full-time employees receive 4 weeks per year, and part-time employees receive a pro-rata amount based on their hours.
Can my employer refuse my annual leave request?
Yes, employers can refuse annual leave requests, but only if the refusal is reasonable. Factors that might make a refusal reasonable include operational requirements, peak business periods, or insufficient notice. Employers and employees should work together to agree on leave timing.