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B. Key Considerations

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Statutory Annual Leave

All Employees are automatically entitled to annual leave on commencement of employment.  The legislation sets out three methods which may be used to calculate an Employee’s statutory annual leave.  Annual leave does not actually have to be “built-up” in advance of it being taken, although some Employers do introduce restrictions on the leave that an Employee may take during their initial period of employment.

Calculating Actual Monthly/Annual Working Hours

Annual leave accrual is based on actual working hours.  However, time spent on annual leave, public holiday leave, maternity leave, adoptive leave, parental leave, jury service leave, or the first 13 weeks of carers leave must be treated as though the Employee was in attendance at work for their normal working hours.  The Workplace Relations Act amendments also provide that time spent on certified sick leave is to be treated as time worked for the purpose of accrual of annual leave.

Employees Annual leave entitlements are calculated by one of the following methods:

  1. 4 working weeks in a leave year in which the Employee works at least 1,365 hours (unless it is a leave year in which he or she changes Employment).
  2. 1/3 of a working week per calendar month that the Employee works at least 117 hours.
  3. 8% of the hours an Employee works in a leave year (but subject to a maximum of 4 working weeks)