Annual Leave and Holiday Pay

During the first year of employment, employees have no annual leave. Most employers still allow employees to take annual leave during this period, but the leave is basically taken in advance. If employees quit before being hired for a year, they get paid Holiday Pay as the final wage (usually 8% of earnings). The value of the any leave they have taken in advance will be deducted from the final wage. When the employee reaches their next anniversary, holiday pay is reversed and annual leave updated to a minimum of four weeks, less any leave already taken in advance.

  • Annual Leave: Annual leave is the leave entitlement permanent employees accrue in hours. An employee becomes entitled to annual leave after each anniversary (12-month period) of continuous employment for an employer.
  • Holiday Pay: Holiday pay is the leave entitlement an employee accrues at a minimum of 8% of their gross earnings.
    • Casual employees receive holiday pay as an extra payment each pay, or at the end of each engagement.
    • Permanent employees accrue holiday pay during 12-month period from their start or leave anniversary date.
  • If the employee reaches their employment anniversary:
    • The Annual Leave Accrued balance becomes Annual Leave Due
    • The Annual Leave Taken during the year get deducted from the Annual Leave Due.
    • The Holiday pay Annual Leave Accrued and Annual Leave Taken balances are set to zero.