Does annual leave accrue on leave without pay?

The short answer

No – Annual leave does not accrue while an employee is on a period of unpaid leave or an unauthorised leave of absence.

HR nerds and curious employers read on…

Annual leave (also known as holiday pay) allows an employee to be paid while having time off from work. The entitlement comes from the National Employment Standards, with Section 87 of the Fair Work Act 2009 defining the entitlement.

Annual leave accumulates from the first day of employment.

The leave accumulates incrementally throughout the year and any unused leave will roll over from year to year.

Annual leave accumulates when an employee is on:

• paid leave such as paid annual leave and paid sick and carer’s leave
• community service leave including jury duty
• long service leave.

It does not accumulate when the employee is on:

• unpaid annual leave
• unpaid sick/carer’s leave
• unpaid parental leave
• unpaid family and domestic violence leave.

Simple, right? And so is taking the first step to making your business (and people) smarter, stronger and faster this year.

Bare Bones Consulting can show you.

We know HR back to front and can demonstrate how the right structure, policies and procedures can take you to the next level as an Employer of Choice. 

And at a value-for-money price. Don’t tell me you don’t need that in today’s environment.

Contact us for assistance with HR 

Bare Bones Consulting is a small HR consultancy on the Gold Coast that services small businesses in Brisbane as well as Australia-wide.

Give Greg a call on 07 5576 4693 or contact us online.