Q & A

Frequently asked questions.

Plain answers to the most common questions about Australian leave law, entitlements, and calculations.

Annual Leave

How is annual leave calculated in Australia?
FT employees accrue 4 weeks (152 hours) per year, about 2.923 hrs/week. PT employees accrue pro-rata. Casuals don't accrue paid annual leave; they receive 25% loading instead.
How many days is 100 hours of annual leave?
12.5 days based on an 8-hour workday. If your standard day is 7.6 hours (38-hr week ÷ 5 days), 100 hours equals 13.16 days.
What is annual leave loading and who gets it?
17.5% on top of base pay when annual leave is taken. Compensates for the loss of overtime and penalty rates while on leave. Eligibility depends on your modern award.
Can my employer force me to take annual leave?
In limited cases, yes. If your balance is "excessive" (typically 8+ weeks accrued), or during a planned shutdown, employers can direct you to take leave with reasonable written notice.
Can I cash out annual leave while still employed?
Sometimes. Most awards allow cash-out by written agreement, but you must keep at least 4 weeks of accrued leave on hand at all times.
Does annual leave accrue while I'm on leave?
Yes, paid annual leave, paid personal/carer's leave and paid public holidays all count toward continuous service for accrual purposes. Unpaid leave generally doesn't.
How does annual leave interact with public holidays?
If a public holiday falls during your annual leave, that day is paid as a public holiday, not deducted from your annual leave balance.

Long Service Leave

Who is entitled to long service leave?
Almost every Australian employee with sufficient continuous service. Rules vary by state, typically 10 years for full entitlement, with pro-rata available earlier on termination.
Do casuals get long service leave?
In most states yes, if their service has been "regular and systematic." Casuals working consistent hours over the qualifying period have the same LSL entitlement as permanent employees.
Can long service leave be cashed out?
No. Unlike annual leave, LSL cannot be cashed out while employed. It must either be taken as leave or paid out on termination.

Redundancy Pay

How is redundancy pay calculated in Australia?
Under the NES (Fair Work Act s.119), redundancy pay scales by years of continuous service: 4 weeks at 1 year, 6 at 2 years, 7 at 3, 8 at 4, 10 at 5, 11 at 6, 13 at 7, 14 at 8, 16 at 9, then drops back to 12 weeks at 10+ years. Paid at base rate, not gross. Run your figures in the redundancy calculator
Why does redundancy pay drop after 10 years?
It's a historical quirk: the NES schedule was designed when long service leave kicked in at 10 years, so the redundancy bracket steps down to avoid double-counting. Your award or enterprise agreement may pay more.
Do small businesses have to pay redundancy?
No. Employers with fewer than 15 employees are exempt from NES redundancy under section 121 of the Fair Work Act. They still owe notice and unused leave payouts.
Do casuals get redundancy pay?
Generally no. Casuals are excluded from NES redundancy because their 25% loading is paid in lieu of leave and notice entitlements. A regular casual employed for 12+ months may have other rights though.
Is redundancy pay taxed?
Genuine redundancy gets a tax-free cap: $13,100 + $6,552 per completed year of service for FY2025-26 (rises to $13,598 + $6,801 from 1 July 2026, ATO indexed annually). Anything above that is taxed at the employment termination payment (ETP) rate, which is concessional below the ETP cap ($260,000 for FY2025-26).
What counts as continuous service for redundancy?
Unbroken employment with the same employer. Paid leave (annual, personal, public holidays) counts. Unpaid leave doesn't add to service but doesn't break it. Casual to permanent conversions usually count from the conversion date.

Termination and Final Pay

What's included in final pay when I leave a job?
Final pay covers: any notice owed (or PILON), unused annual leave at base + loading, unused LSL where applicable, plus redundancy pay if your role was made redundant. It must be paid within 7 days of termination under most awards. Redundancy calculator (separate)
How much notice does my employer have to give me?
Under s.117 of the Fair Work Act: 1 week (under 1 year), 2 weeks (1-3 yrs), 3 weeks (3-5 yrs), 4 weeks (5+ yrs). Add 1 week if you're over 45 with 2+ years service. Awards or contracts may require more.
Is unused annual leave paid out at base rate or with loading?
Base rate is the legal minimum (s.90). Most awards require loading too (17.5%) when the loading would have applied to the leave if taken. Check your award or contract.
When does final pay have to be paid?
Most modern awards require final pay within 7 days of termination. The Fair Work Act doesn't set a federal deadline, but unreasonable delay can trigger underpayment claims.
Is final pay taxed differently?
Notice and leave payouts are taxed as ordinary employment income. Redundancy pay above the genuine redundancy tax-free cap ($13,100 + $6,552 per completed year for FY2025-26, rising to $13,598 + $6,801 from 1 July 2026) is taxed as an ETP at concessional rates.

General

How is annual leave calculated in Australia?
Full-time employees accrue 4 weeks (152 hours) per year of service under the NES, that's about 2.923 hours per week worked. Part-time employees accrue pro-rata based on their hours. Run the numbers in our annual leave calculator
How many days is 100 hours of annual leave?
Based on a standard 8-hour workday, 100 hours equals 12.5 working days. If your standard day is 7.6 hours (a 38-hour week over 5 days), 100 hours equals roughly 13.16 days.
Do casual employees get annual leave?
No, casuals don't accrue paid annual leave. Instead they receive a 25% casual loading on their base hourly rate to compensate. They do, however, get unpaid carer's leave and LSL in most states. See the casual vs permanent guide
What is annual leave loading and who gets it?
Leave loading is an extra 17.5% on top of base pay when annual leave is taken. It compensates for the loss of overtime and penalty rates while on leave. Eligibility depends on your modern award or enterprise agreement.
How long until I qualify for long service leave?
Most states require 7–10 years of continuous service for full LSL. Pro-rata payouts are available earlier (e.g., after 5 years in NSW on termination). Rules vary significantly by state. Check your state's LSL rules
Do I get my unused leave paid out when I quit?
Yes. Unused annual leave must be paid out on termination at your final base rate, plus loading where applicable. LSL payout depends on your state and reason for leaving.
How is parental leave pay calculated in 2026?
The Paid Parental Leave (PPL) scheme provides 120 days (24 weeks) at the National Minimum Wage in FY2025-26, rising to 130 days (26 weeks) from 1 July 2026 under the staged 2023 reforms. This is in addition to any employer top-up and the 12 months of unpaid parental leave under the NES.
Can my employer force me to take annual leave?
In limited circumstances, yes. An employer can direct you to take leave if your balance is "excessive" (typically 8+ weeks accrued) or during a planned shutdown, subject to reasonable notice and award terms.
Does leave accrue during probation?
Yes. The NES applies from day one of employment. Probation has no effect on leave accrual, the only thing it changes is the simpler dismissal process.