Full time and part time employees in the WA state industrial relations system have a minimum entitlement to paid annual leave that comes from the Minimum Conditions of Employment Act 1993. WA awards, industrial agreements and contracts of employment may provide an employee with a better entitlement to annual leave.
Casual employees are not entitled to paid annual leave.
Full time employees get 4 weeks of annual leave for each year of completed service, paid up to a maximum of 152 hours. Part time employees get annual leave of 4 weeks per year but paid on a pro rata basis according to the number of hours they work.
For example, if an employee works 20 hours per week they get 4 weeks of annual leave paid at 20 hours per week.
Annual leave is a cumulative entitlement, which means that any leave that is not taken is carried over to the next year.
Annual leave accrues on a weekly basis. A full time employee accrues 2.923 hours of annual leave for each completed week of work (based on the standard 38 hour week), and a part time employee will accrue the relevant proportion of 2.923 hours annual leave for each completed week of work. The annual leave calculation guide outlines the steps in calculating an annual leave entitlement.
Generally, an employee needs to work for 12 months before they can take annual leave unless the employer agrees that the employee can access the annual leave earlier. Some awards contain specific provisions to enable annual leave to be taken earlier.
There is no obligation on an employer to grant an employee time off (paid or unpaid) for annual leave if there is no entitlement.
An employee who believes they have not been paid an annual leave entitlement due when employment ends, can follow the steps to make an underpayment complaint to Private Sector Labour Relations.
For specific information on annual leave:
- If you are covered by a WA award, view the WA award summaries, or the award on the Western Australian Industrial Relations Commission website
- If you are covered by an industrial agreement, please check the specific provisions in the agreement by contacting the human resources area of your employing organisation.
Taking annual leave
Show moreAnnual leave must generally be taken by agreement between the employer and employee. An employer can give an employee a general direction to take annual leave, but cannot direct them as to when they must take the leave (i.e. cannot direct them to take the leave at a particular time). A WA award or industrial agreement which has a provision that enables an employer to require an employee to take annual leave at a particular time is of no effect.
Where an employee has accrued their annual leave more than 12 months ago, an employee can take annual leave with 2 weeks’ notice to their employer, and the employer cannot refuse their request to take annual leave.
If the leave has not yet been accrued for 12 months, the employee needs to reach an agreement with their employer about taking the leave.
Taking annual leave during specific periods, such as Christmas closedown
As noted above, annual leave must generally be taken by agreement between an employer and employee.
An employer and employee may agree in advance, through a contract of employment, initial appointment letter or verbal agreement, about specific periods when the employee is to take annual leave, such as a period when the business is closed.
In the absence of an agreement, an employee cannot be directed to take annual leave at a particular time.
Annual leave when employment ends
Show moreAn employee is generally entitled to be paid out annual leave when employment ends due to resignation, dismissal or redundancy. The exact entitlements may depend on the specific circumstance of employment ending.
Unused annual leave for any completed year of employment gets paid out when employment ends, except where the employee is dismissed for misconduct and the annual leave relates to a year of service completed after the misconduct occurred.
Employees get paid out pro-rata annual leave for part of a year of employment when they are terminated by the employer due to redundancy or dismissal (except for dismissal for misconduct). Pro-rata annual leave is also paid out when the employee resigns and gives the notice required by the employee’s WA award or industrial agreement, or if no award or agreement applies, the notice required by their contract of employment.
Some WA awards and industrial agreements also require an employee to be paid pro rata annual leave when they resign without giving the required notice, or when they are dismissed for misconduct.
Payment for annual leave, including leave loading
Show moreEmployees are to be paid their current rate of pay when they take annual leave or when annual leave is paid out when employment ends.
Visit Minimum entitlements for commission only and piece rate employees for information on how to calculate leave payments for employees paid by commission or piece rate.
Annual leave loading
Employees who are not covered by an award or agreement do not receive annual leave loading unless it is specified in a contract of employment.
WA awards and industrial agreements may require annual leave loading (usually 17.5%) to be paid when an employee takes annual leave, and may require payment of annual leave loading when annual leave is paid out when an employee's employment ends. Awards and agreements may also require payment of certain allowances during annual leave.
Annual leave accrual during workers compensation
Show moreThe effect of a period of income or workers compensation on an employee’s annual leave accrual will depend on when the period of compensation occurred.
Please note: employees who have received workers compensation that is not under the WA workers compensation legislation (e.g. under the Safety, Rehabilitation and Compensation Act 1988 (Cth)) may have different entitlements.
Periods of income compensation on or after 1 July 2024
Under the Workers Compensation and Injury Management Act 2023 (new WCIM Act), an employee accrues entitlements to annual leave during any absence from work on income compensation on or after 1 July 2024.
For employees covered by the new WCIM Act, the entitlement to accrue annual leave during a period of workers compensation will apply irrespective of any condition within an award or agreement.
Periods of workers compensation before 1 July 2024
For periods of workers compensation before 1 July 2024, annual leave does not accrue unless:
- the employee was performing work during the period of workers compensation, including participating in a return to work program, in which case they accrue annual leave for any time that they perform work;
- the employee was receiving paid annual leave or long service leave while (i.e. at the same time) they are receiving workers compensation payments; or
- the relevant WA award or agreement specifically states that it does. For example, the Building Trades (Construction) Award states that employees continue to accrue annual leave while absent from work and receiving workers compensation (up to a maximum of 26 weeks).
Cashing out annual leave
Show moreEmployees covered by WA awards or industrial agreements
Where an employee is covered by a WA award or an industrial agreement, an employee can only cash out annual leave if there are is a specific provision in the award or agreement which allows annual leave to be cashed out. Most WA awards do not contain provisions which allow cashing out of annual leave.
If an award or industrial instrument does allow cashing out, employers and employees must comply with the specific requirements on cashing out provided in the award or agreement. Employees who have queries about the specifics of cashing out provisions in an industrial agreement should contact their employer for information.
If the employee is not covered by a WA award or industrial agreement
Where the employee is not covered by a WA award or industrial agreement, employers and employees can agree to cash out annual leave if certain requirements are met.
The Minimum Conditions of Employment Act 1993 allows that after the end of any year of employment, the employer and employees may agree that the employee may forgo taking their annual leave in relation to that year, if all of the following circumstances are met:
- the amount of annual leave forgone does not exceed 50% of the whole amount of annual leave entitlement for that year of employment;
- the employee is given an equivalent benefit in lieu of the amount of annual leave forgone; and
- the agreement is in writing, signed by the employer and the employee.
Any agreement to cash out annual leave must be kept as an employment record, as part of an employer’s record keeping obligations.
An employer cannot:
- make an offer of employment to somebody that requires them to agree to forgo taking and cash out annual leave;
- exert undue influence or undue pressure on the employee in relation to whether or not to forgo taking and cash out annual leave; or
- require the employee to forgo taking and cash out an amount of annual leave.
Sickness or injury while on annual leave
Show moreThere is not a minimum entitlement to convert annual leave to personal leave if the employee was sick during a period of annual leave. Some WA awards and industrial agreements may contain provisions regarding converting annual leave to personal leave.
Public holidays and annual leave
Show moreIf an employee is on a period of paid annual leave, they do not have a minimum entitlement to payment for a public holiday because they are not required to work solely because it is a public holiday, but rather are absent because they are on a period of annual leave. However, a WA award or industrial agreement may provide for employees to have paid public holidays which fall during a period of leave.
