What is annual leave?

Annual leave allows employees to take paid leave while they are away from work. It is a benefit that all employees (except casuals) are entitled to from their employer under the National Employment Standards. This type of leave is different from sick leave, personal leave, carers/parental leave or family/domestic violence leave.

How does annual leave accrue?

Annual leave starts to be accrued on the first day on the job and is collected gradually throughout the term of employment. There is no time constraint as to when an employee must use their annual leave, and is rolled over from one pay period to the next. While annual leave is accrued during an ordinary work week, it can also be accrued while an employee undertakes other specific forms of leave.

Source: https://www.fairwork.gov.au/leave/annual-leave

How much annual leave per year does an employee get?

The amount of annual leave an employee is entitled to depends on their award rate. If you are not using the Aurion Leave system which calculates this automatically, it is recommended to manually check entitlements against your relevant industry award.  The most common calculation of annual leave for employees is the equivalent of 4 weeks of their ordinary working hours.

See some examples of this calculation below.

What happens to annual leave when an employee is terminated?

When employment ends, it is the responsibility of the employer to ensure that the employee has an annual leave payout of any unused leave that has been accumulated. Cashing out annual leave is processed during the final pay.

Aurion Annual Leave Processing

We know that managing leave can be complicated, which is why our Aurion Leave tool makes this process uncomplicated. Aurion Leave manages the leave balances of your workforce as well as the ongoing leave accrual processes and entitlements for employees. 

To administer leave entitlements, Aurion uses awards and the employees’ individual work pattern.  When accessing an employee’s leave, Aurion displays only the Leave Types available to the individual employee. 

Accruals are used within the leave module and are configured to accrue leave daily, based on hours worked, annually. 

At Aurion, in addition to our dedicated team who you will meet in the onboarding process, we have a specialised eLearning team. This team creates and updates our online learning modules that are included in your Aurion solution to ensure that you are armed with all the information you require to seamlessly complete your payroll process.

Let’s chat!

For your most uncomplicated leave management solution, speak with our expert team. Our Aurion payroll specialists are available to discuss how our Aurion Leave tool can be used in your ultimate payroll solution! You can reach our experienced team by calling 1300 287 466 or send an email to hello@aurion.com.

We’re excited to work with you to make life work better!