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Annual Leave Loading.

Views: 2004Posted 14-09-2017

This animation answers the question: What is Annual Leave Loading? It aims to help employers understand if they need to pay leave loading to their employees. With one of the most complex workplace relations systems in the world it can be a challenge for owners and managers of SMEs in Australia to ensure they are compliant, and that’s where Employsure can help. Employsure protects employers from risks by providing advice, legally compliant documents, insurance and representation. Employsure is a team of workplace relations specialists dedicated to helping small businesses succeed by creating fair and safe workplaces.

Annual leave loading is an additional payment that some employees are entitled to when they take annual leave. This is designed to cover employees for bonuses or overtime they might miss while on holiday. How do you know if you should be paying leave loading? Many employees in Australia are covered by either a modern award or an enterprise agreement, which dictates the minimum amount they can be paid and also their leave loading entitlements. For example, workers covered by the Building and Construction General Onsite Award are entitled to 17.5% leave loading or their shift loadings and employee usually gets. Whichever is higher.
It’s important to remember that if your business pays above award raise and does not intend to pay leave loading, this must be clearly stated in your employment contract and the employee’s salary must be high enough to cover the difference. Employee underpayment can have serious penalties. For peace of mind about your obligations, speak with Employsure today.

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