Full-time and part-time employees in Australia get 4 weeks of paid annual leave a year under the National Employment Standards, based on their ordinary hours. It builds up from the first day of work, rolls over if unused, and is paid out when the job ends. Casual employees don't get paid annual leave.
Awards and enterprise agreements can give more, never less. These are the rules the Fair Work Ombudsman sets out, read in October 2026, which rest on sections 86 to 94 of the Fair Work Act 2009.
Who gets annual leave, and how much
| Employee | Annual leave |
|---|---|
| Full-time | 4 weeks a year, based on ordinary hours |
| Part-time | 4 weeks of their own ordinary hours, so someone on 20 hours a week builds up 80 hours |
| Shiftworker | More than 4 weeks if their award or agreement defines them as a shiftworker getting the extra week |
| Casual | No paid annual leave |
How annual leave builds up
It accumulates gradually through the year from the first day, even during a probation period, and any unused leave rolls over from year to year. It keeps building while an employee is on paid annual leave, paid sick and carer's leave, paid family and domestic violence leave, community service leave including jury duty, and long service leave.
It doesn't build up during unpaid annual leave, unpaid sick or carer's leave, or unpaid parental leave. Here's the detail people miss: the government's Paid Parental Leave scheme doesn't count as paid leave for this purpose, so an employee on unpaid leave from their employer while getting that government payment doesn't accumulate annual leave. Leave that's been cashed out doesn't build more leave either.
Taking annual leave
- The employee asks before going on leave. The process is often set out in the award or agreement.
- The employer can refuse only if the refusal is reasonable.
- There's no minimum or maximum amount that can be taken at once, as long as both agree.
- Employees don't have to take it all in one go.
- Awards and agreements can set extra rules, such as leave in advance or excessive leave balances.
What employees are paid on leave
Annual leave is paid at the employee's current base pay rate for all hours taken. Some employees also get annual leave loading, an extra amount set by their award or agreement. The Ombudsman's example is a warehouse shiftworker whose award gives the higher of a 17.5% loading or his 15% afternoon shift loading, so he gets 17.5%. My guide to annual leave loading explains who gets it.
If an employee is sick or injured during annual leave, they can use paid sick or carer's leave instead, and the employer can ask for notice and evidence. An employer can't direct an employee to take annual leave while they're on sick or carer's leave.
Cashing out annual leave
Cashing out means being paid for leave instead of taking time off. It's only allowed if the award or enterprise agreement allows it. Most awards do, usually on these conditions:
- The employee has at least 4 weeks of annual leave left after the cash-out.
- There's a signed written agreement stating how much leave is cashed out, the amount paid and the payment date. A parent or guardian also signs if the employee is under 18.
- No more than 2 weeks are cashed out in any 12-month period.
- The payment is the same as the employee would have got for taking the leave.
- The employer doesn't force or pressure the employee, and keeps the agreement on record.
When the job ends
The employer must pay out all unused annual leave, at the same amount the employee would have got for taking it, including any loading or other payments that would apply. The Ombudsman says this applies even if an award, agreement or employment contract says it doesn't. It's one of the minimums in the National Employment Standards that can't be contracted out of.
Two worked examples
The Ombudsman's part-time example: Jane works 20 hours a week, so over a year she builds up 80 hours of annual leave, the equivalent of 4 weeks of her work. Its cash-out example: Luanne, a full-time hairdresser under the Hair and Beauty Award, has 9 weeks of leave after a cancelled trip. Her award lets her cash out up to 2 weeks in any 12-month period, she hasn't cashed out any in the last 12 months, and she'd still have more than 4 weeks left. She and her employer sign the Ombudsman's agreement template and each keep a copy.
My verdict
For most employers, annual leave is straightforward: 4 weeks, built up from day one, rolled over if unused and paid out at the end. The two places businesses slip are cashing out without a signed agreement and forgetting loadings in the final pay. For long-serving staff, check long service leave too, because it's a separate entitlement on top.
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Frequently asked questions
How much annual leave do you get in Australia?
Full-time and part-time employees get 4 weeks of paid annual leave a year under the National Employment Standards, based on their ordinary hours. Casuals don't get paid annual leave.
Does annual leave accrue during probation?
Yes. The Fair Work Ombudsman says annual leave accumulates from the first day of employment, even during a probation period.
Can my employer refuse my annual leave?
Only if the refusal is reasonable. The employee requests leave first, often following the process in their award or agreement.
Is unused annual leave paid out when you leave a job?
Yes. Employers must pay unused annual leave at the amount the employee would have received for taking it, including loadings, even if a contract says otherwise.
Can you cash out annual leave in Australia?
Only if your award or enterprise agreement allows it. Most awards do, with at least 4 weeks left afterwards, a signed written agreement and no more than 2 weeks cashed out in any 12 months.
Do casual employees get annual leave in Australia?
No. The Fair Work Ombudsman says all employees except casual employees get paid annual leave under the National Employment Standards.
Is annual leave paid at the base rate in Australia?
Yes. It's paid at the employee's current base pay rate for all hours taken, plus annual leave loading where the award or agreement gives it.
