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Annual leave
Last updated July 2024
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.
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);
- enterprise agreements;
- modern awards; and
- employment contracts.
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 $99,000 for a body corporate or $19,800 for an individual.