Annual leave, also known as holiday pay, is one of the most valued entitlements in the Australian workplace. Introduced as a standard benefit in 1970 after a successful union campaign, it allows employees to enjoy paid time off while balancing their personal lives. Here’s everything you need to know about your annual leave rights, how it accrues, and how to make the most of it, particularly during the holiday season.

What Is Annual Leave?

Annual leave is paid time off that full-time and part-time employees can use for rest, holidays, or personal needs. In Australia, full-time workers are entitled to four weeks of annual leave per year, with part-time employees receiving a proportionate amount based on their hours.

Shift workers often have even greater entitlements, with many awards and agreements granting them at least five weeks of annual leave annually.

For casual workers, annual leave is not automatically included unless specifically negotiated in their employment terms.

How Does Annual Leave Accumulate?

From the day you start work—even if you’re on probation—you begin accruing annual leave. Full-time employees typically accumulate around 2.93 hours of leave per week, amounting to four weeks of leave each year. Part-time employees accrue leave based on their hours.

Here’s what you need to know about accumulation:

Leave accrues during:

Jury duty or community service.

Leave does not accrue during:

Unused annual leave rolls over to the next year, ensuring you never lose your accrued entitlements. If you leave your job with unused leave, your employer must pay this out.

Taking Annual Leave: Your Rights

One of the key benefits of annual leave is its flexibility. Whether you’re planning a relaxing beach holiday or time with family over the summer break, you can take leave in a way that suits you, provided you have accrued enough hours.

• When to take leave: There’s no minimum period for taking annual leave, and you can start using it as soon as you’ve accrued enough hours—even while on probation. You can request one day at a time or plan an extended holiday.

• Approval process: While you are entitled to take your leave, you must submit a formal request and agree on the timing with your employer. They cannot unreasonably refuse your request, but they may propose alternatives based on business needs.

During the holiday season, many employees choose to take annual leave for summer getaways or to celebrate the festive period. It’s wise to plan your leave early, as this is a peak time for requests.

Public Holidays and Annual Leave

Public holidays, such as Christmas Day or Australia Day, do not count as part of your annual leave. If you’re on leave during a period that includes public holidays, those days remain separate, and you are entitled to be paid for them without reducing your leave balance.

Getting Paid During Annual Leave

While on annual leave, you must be paid your base rate of pay, excluding extras like penalties or overtime. However, many awards and agreements also include a 17.5% leave loading, giving you a little extra to enjoy during your time off.

Can Your Employer Force You to Take Annual Leave?

In some situations, employers can direct you to take annual leave, such as:

• When the workplace shuts down (e.g., during Christmas).

• If you have accumulated excessive leave.

However, such directions must be reasonable and comply with your workplace agreement or award.

Making the Most of Your Leave This Holiday Season

The summer holidays and New Year period are perfect opportunities to use your annual leave for a much-needed break. With many workplaces slowing down or shutting entirely, it’s an ideal time to relax, recharge, and spend time with loved ones.

To ensure your leave request is approved, submit it well in advance, especially during this busy period. Planning early also gives you time to organise a memorable holiday or a restful staycation.

More Than Just A Workplace Benefit

Annual leave is an essential tool for maintaining work-life balance. By understanding your rights and planning your leave strategically, you can enjoy a well-deserved break and return to work refreshed and ready to go.

Take advantage of your entitlements this summer and make the most of your annual leave. Whether it’s soaking up the sun, celebrating with family, or simply taking time for yourself, a good break is invaluable.