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Five rules of annual leave.

Leave entitlementsSeptember 5, 2017

(Last Updated On: September 6, 2017)


When looking at annual leave, there is a lot for employers to understand and comply with. The infographic outlines some of the areas employers often overlook in managing annual leave entitlements for their employees. Download the pdf here.

National Employment Standards (NES).

Annual leave is one of the ten National Employment Standards (NES). Every employee, excluding casuals, are entitled to four weeks paid leave away from work each year.

Accrual of annual leave.

Despite every permanent employee being entitled to four weeks of annual leave a year, this is not available from the first day of the job. Annual leave accrues on an ongoing basis, with accrual starting on the first day the employee works.

Excess annual leave.

Where an employee has excessive leave, employers may have the option to direct employees to take annual leave if reasonable, or if a mutual agreement cannot be reached. The process depends on the industry and award or agreement.

Annual leave loading.

Under some Modern Awards, an employee may be entitled to additional leave loading when on annual leave, usually up to17.5% extra on top of their normal pay. As the loading varies across industries, it is vital employers check what their relevant Award or agreement states, as well as their employment contracts.

Annual leave and termination.

Upon termination, annual leave must be paid out to employees as if they had taken the leave. This includes any entitlement to annual leave loading outlined in the Award or agreement.

For Advice on annual leave entitlements specific to their workplace employers should contact Employsure on 1300 651 415.


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