What is annual leave?
Annual leave is 4 weeks of paid leave per year that accrues progressively for all permanent employees under the NES.
Annual leave (also called holiday pay) is a minimum of 4 weeks paid leave per year for full-time employees under the National Employment Standards. Part-time employees accrue annual leave on a pro-rata basis. Casual employees do not get paid annual leave — this is compensated through casual loading.
Leave accrues progressively throughout the year based on ordinary hours worked and accumulates from year to year if not taken. Some awards and agreements allow cashing out of annual leave, but strict rules apply — you must have at least 4 weeks remaining after the cash-out.
Key facts
- •Full-time employees get 4 weeks (152 hours) of paid annual leave per year
- •Shift workers under most awards get 5 weeks per year
- •Leave accrues progressively from day one and rolls over if unused
- •Cashing out is only allowed if the award or agreement permits it, and you must retain at least 4 weeks' balance
- •Annual leave is paid at the employee's base rate of pay
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Leave Entitlements CalculatorFrequently asked questions
Can my employer force me to take annual leave?
In some cases, yes. Under most awards, an employer can direct an employee to take excessive annual leave (generally more than 8 weeks accrued). Employers can also require leave during shutdown periods with proper notice.
Do I get annual leave paid out when I resign?
Yes. All accrued but untaken annual leave must be paid out on termination, regardless of the reason for leaving.
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.