An employee is entitled to an additional payment made on top of their usual salary when they take annual leave. This is known as annual leave loading or holiday loading.
While the amount of the loading (if any) varies based on the industrial instrument that covers the employee’s employment, it is typically 17.5 percent of their base rate or average rate of pay. Annual leave loading is not available to all employees.
The National Employment Standards (NES), which are part of the Fair Work Act 2009 and applied to all employees covered under the national workplace relations system, require full-time and part-time employees to take a minimum of four weeks of paid annual leave per year, regardless of any award, agreement, or contract.
The award or enterprise agreement applied to the employee determines if they are eligible for annual leave loading and the amount of loading used. Annual leave loading may be provided by an employment contract with the employer if it is neither an award nor a registered agreement covers this. Neither a tribute nor a written agreement covers this.
Yes, annual leave loading can be negotiated, but this largely depends on the specific employment arrangements. However, the specifics of how much leave loading you receive is offered through direct discussions with employers.
If you don’t use any annual leave, it continues to accrue and can be carried over to the next year, depending on your organization’s policy. But it is important to understand terms and conditions subject to any caps that may apply under your employment agreement or relevant laws.
Yes, regardless of whether you resign or are terminated, if you are eligible for annual leave loading and have accrued but unused annual leave and when your employment ends, your employer must pay out that loading as part of your final entitlements.
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