This chapter explains annual leave entitlements under the National Employment Standards, enterprise agreements and modern awards.
Annual leave entitlements
All full-time and part-time employees are entitled to annual leave.
Definition: Annual Leave
Annual leave is paid time off work, usually for recreational purposes.
An employee’s annual leave entitlements are governed by:
the National Employment Standards (NES) in the Fair Work Act 2009 (Cth);
modern awards; and
Important: If more than one instrument stipulating annual leave entitlements applies to your employees, you must comply with the instrument that has the most generous provisions.
Caution: Never undercut the NES, even if an applicable modern award, enterprise agreement or employment contract does so. Doing so is a contravention of the FW Act, which exposes you to a penalty of up to $93,900 for a body corporate or $18,780 for an individual.