Employer’s annual leave obligations

Employer’s annual leave obligations


Annual leave or holiday pay, allows an employee to be paid while they have time off from work. The law confers obligations on employers to provide rights to their employees depending on the status of that employee. All of your employees are entitled to annual leave, aside from those who work casually.

Keep compliant by following this basic checklist.

Minimum entitlements
Employees working full time accumulate four weeks of paid annual leave each year of service. This leave will accrue based on the number of ordinary hours that they work. Annual leave will continue to accumulate during paid leave but not unpaid leave.

Shift workers
If you are using shift workers, they are entitled to five weeks of paid leave. The award or registered agreement must apply to the employee.

When can annual leave be taken?
Annual leave can be taken as soon as it is accumulates. You cannot compel your employees to take the leave each year. However, an employee cannot unreasonably refuse your request to take annual leave, if they have accumulated it over a long period, such as ten years.

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If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.


Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.


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