Most full-time and part-time workers in NSW are entitled to a minimum of four weeks paid leave per year for each 12 month period of employment. This leave entitlement is provided under the Annual Holidays Act 1944.

Exceptions

Some workers are not covered by the Act and may have different leave entitlements.

If you are:

• covered by a federal award or agreement which provides for an annual leave entitlement
• covered by a NSW award, agreement or contract of employment which provides more favourable leave entitlements than those in the Act
• a federal and state public servant with your own specific statutory leave entitlements you will not necessarily have four weeks paid leave per year.

When can I take my annual leave?

Annual leave becomes available on your one-year anniversary of starting work for an organisation. You must take your annual leave no later than six months after this date.

If you and your employer agree, annual leave can be taken before the one-year working anniversary.

Can leave be delayed?

If your employer wants to delay your annual holiday beyond that six month period, they need to get the written consent of the Industrial Registrar.

How can annual leave be taken?

You are usually required to take your annual leave in one or two consecutive periods – one period of not less than one week and the other period of not less than three weeks. However leave may also be taken in two, three or four separate periods if this is agreed to by you and your employer.

What happens when a business temporarily closes?

Some employers temporarily close their business as part of a scheduled ‘annual close down’ – often over the Christmas period. Workers must be given one month’s notice before the close down starts and there can only be one close down per calendar year.

If you don’t have enough leave entitlements to cover the close down period you will have to take the balance of that period as leave without pay.

The Act allows for pro rata payments for those who have worked less than 12 months.

What should I be paid when taking annual leave?

If you are taking annual leave, you should be paid your gross wage (not including overtime), plus any shift allowances and weekend penalties for the ordinary hours you would have worked if you were not on annual leave.

Full annual leave entitlements should be paid before you take your holidays.

If your annual leave includes a public holiday, you must be given an extra day’s leave if you would normally be paid for working on that public holiday.

What if I’m a casual worker?

Most casual workers are paid an extra amount on top of their hourly rate in place of annual leave entitlements. This extra payment is usually 1/12th of their hourly rate. Some awards and agreements vary the calculation for this payment.

What annual leave entitlements do I get when I leave my job?

If you have been employed for more than one year you must be paid any annual leave entitlement not yet taken. You should also be paid a pro-rata payment for the period from your last anniversary date to your last day of work.

If you have been employed for a period of less than one year, you must be paid a pro-rata payment calculated from the day you started work.

How is a pro-rata payment calculated?

The payment is calculated by multiplying the number of weeks you are employed by your ordinary gross weekly wage (not including overtime), plus the average of any commissions earned and then dividing that amount by 12.

Can I take a lump sum payment instead of taking annual leave?

Not under the state industrial relations system – unless you are leaving your job.