Australian Annual Leave Guide 2025: Entitlements & How to Use It
Everything you need to know about your holiday leave rights in Australia
IntuitiveCalc Team
Financial Content Specialist
Time Off Is Essential: Annual leave isn't just a nice perk - it's a legal entitlement for permanent employees in Australia. Understanding how it works helps you plan holidays, manage your finances, and ensure you get what you're entitled to.
Annual Leave Basics
Your Entitlement:
- Amount: 4 weeks (20 days) per year for full-time employees
- Shift workers: May get 5 weeks under some awards
- Part-time: Pro-rata based on hours worked
- Casuals: No paid annual leave (25% loading compensates)
- Accrual: Starts from your first day of work
- Accumulates: Unused leave rolls over each year
- Paid out: Unused leave is paid when you leave
How Annual Leave Accrues
| Employment Type | Hours Per Week | Annual Leave (Days) | Annual Leave (Hours) |
|---|---|---|---|
| Full-time | 38 | 20 days | 152 hours |
| Part-time | 30 | 15.8 days | 120 hours |
| Part-time | 20 | 10.5 days | 80 hours |
| Casual | Any | 0 | 0 |
How Accrual Works:
Annual leave accrues progressively throughout the year. A full-time employee accrues approximately 2.92 hours per week or 0.0769 hours per ordinary hour worked. After 3 months, you'll have about 38 hours (1 week) accrued.
Leave Loading Explained
Leave loading is an extra payment on top of your normal pay when you take annual leave. Not everyone gets it.
What It Is:
- Usually 17.5% on top of base pay
- Designed to compensate for lost overtime/penalties
- Paid when you take leave
- May also be paid when leave is cashed out
Who Gets It:
- Check your award or enterprise agreement
- Not part of NES minimum entitlements
- Common in many industries
- May be included in annual salary packages
Example: If your weekly pay is $1,500 and you take one week of annual leave with 17.5% loading, you'd receive $1,762.50 ($1,500 + $262.50 loading).
Taking Annual Leave
Requesting Leave
The Process:
- 1. Submit request: Through your workplace system or form
- 2. Give reasonable notice: More notice for longer leave
- 3. Await approval: Employer must not unreasonably refuse
- 4. Plan handover: For extended leave periods
Can Your Employer Refuse?
Reasonable Refusal:
- Peak business period
- Insufficient notice given
- Too many staff already on leave
- Critical project deadlines
Unreasonable Refusal:
- Refusing all leave requests indefinitely
- No valid business reason
- Discriminatory reasons
- Punishment for exercising rights
Employer-Directed Leave
In some situations, your employer can require you to take annual leave:
When This Is Allowed:
- Shutdown periods: When the business closes (e.g., Christmas/New Year)
- Excessive leave: If you've accumulated 8+ weeks of leave
- With notice: Reasonable advance notice must be given
- Award/agreement terms: May have specific provisions
Shutdown Notice: For Christmas shutdowns, employers must give at least 4 weeks notice of the shutdown period, or as specified in your award.
Cashing Out Annual Leave
Under certain conditions, you may be able to "cash out" annual leave and receive payment instead of taking time off.
Cashing Out Rules:
- Must be allowed by your award or agreement
- Must be in writing
- Must be a genuine agreement (not coerced)
- You must have at least 4 weeks leave remaining after cashing out
- Maximum 2 weeks can be cashed out in any 12-month period
- Payment must be at least what you'd be paid for taking leave
Warning: Cashing out leave means less rest and recovery time. It's generally better to take your leave for work-life balance and wellbeing.
Public Holidays During Leave
The Good News:
If a public holiday falls during your annual leave, it doesn't count as a day of leave. You're entitled to the public holiday as a separate entitlement. For example, if you take 2 weeks off over Easter and there are 2 public holidays, you only use 8 days of annual leave, not 10.
When Employment Ends
| Situation | What Happens |
|---|---|
| Resignation | All accrued annual leave paid out in final pay |
| Termination (not misconduct) | All accrued annual leave paid out in final pay |
| Redundancy | All accrued annual leave paid out (plus redundancy pay) |
| Serious misconduct | Still entitled to accrued annual leave payout |
| Death | Paid to the estate |
Leave Loading on Termination:
Check your award or agreement - some require leave loading to be paid on termination, others don't. The NES doesn't require leave loading payment on termination.
Sick During Annual Leave
Re-crediting Leave:
If you get sick during annual leave, you may be able to use personal/carer's leave instead. You'll need to:
- 1. Provide evidence (medical certificate)
- 2. Notify your employer as soon as practicable
- 3. Have personal leave available to use
The annual leave is then re-credited and personal leave is deducted instead.
Annual Leave Strategies
Maximising Your Leave:
- Bridge public holidays: Take leave around long weekends for extended breaks
- Plan early: Popular periods book up fast
- Check shutdown dates: Know when your workplace closes
- Don't hoard leave: Excessive leave can be directed
- Consider tax: Large leave payouts on termination are taxed normally
- Take regular breaks: Better for wellbeing than one long holiday
Common Questions
Can annual leave be negative?
Some employers allow taking leave "in advance" of accrual. If you resign before accruing, you may need to repay the advance.
Does annual leave accrue during parental leave?
Annual leave doesn't accrue during unpaid parental leave, but it does accrue during any paid parental leave period.
Can my employer cancel approved leave?
Generally only with agreement. If cancellation causes you financial loss, the employer may be liable.
Is there a cap on accrued leave?
No legal cap under NES, but if you accrue 8+ weeks, your employer may direct you to take some leave.
Related Resources
Sick Leave Guide
Personal and carer's leave entitlements
Workplace Rights
All National Employment Standards
Casual to Permanent
How to get annual leave as a casual
Salary Calculator
Calculate your leave payout
Key Takeaways
- Full-time employees get 4 weeks (20 days) annual leave per year
- Leave accrues from day one and accumulates year to year
- Leave loading (17.5%) may apply - check your award
- Employers can't unreasonably refuse leave requests
- Public holidays during leave don't count as leave days
- All accrued leave is paid out when you leave your job
- If sick during leave, you may use personal leave instead
Last updated: January 2025. Check your specific award or enterprise agreement as entitlements may vary.