What is Annual Leave?
Annual leave is an accrued employment entitlement that allows all full-time and part-time employees to take certain amounts of paid leave each year. Employees (except for casual employees) are entitled to the following amount of paid annual leave each year:
- 4 weeks of paid annual leave; or
- 5 weeks of paid annual leave if an employee is classified as a "shiftworker".
Part-time employees are entitled to the above periods of paid annual leave on a pro-rata basis.
Annual leave entitlements accrue throughout the year of service, and accumulate from year to year. If the employment ends for any reason, the employer must pay out the annual leave that the employee has accrued up to that date.
Some Modern Awards also require an employer to pay annual leave loading, which is an additional amount paid to employees whilst they are on annual leave. Although the relevant Modern Award will indicate the specific rate of loading in relation to an employee, annual leave loading is usually 17.5% in addition to an employee's normal wages.
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