Annual leave policy template
A free, ready-to-edit annual leave policy template for Australian workplaces. Set out NES entitlements, how leave accrues, leave loading, the request and approval process, cashing out and shutdown direction — so leave is managed fairly and consistently. No signup required.
Annual leave policy
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By downloading, you agree to our template disclaimer
This annual leave policy template reflects the National Employment Standards under the Fair Work Act at the time of publication and is provided as a general guide to adapt for your business, modern award or enterprise agreement. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Why your workplace needs an annual leave policy
Under the National Employment Standards, every permanent employee in Australia is entitled to paid annual leave — a minimum of four weeks a year for full-time staff, pro-rata for part-time. Casuals don’t accrue annual leave. A clear, documented policy is the simplest way to apply those rules consistently and avoid disputes.
Without written guidelines, businesses end up arguing over who can take leave when, how balances are calculated, and what happens at peak periods or over a Christmas shutdown. A good policy sets the notice and approval process up front, explains how leave accrues from day one, and addresses excessive balances before they become a liability.
It should apply to all permanent employees and sit alongside any modern award or enterprise agreement that applies to your team. Store the policy and capture acknowledgements in your HR software so you can show every worker has read and understood it, and track balances automatically with leave management software.
What an annual leave policy should cover
The essentials of fair, NES-aligned leave management
NES entitlement
The minimum 4 weeks per year for full-time staff (5 for some shift workers), pro-rata for part-time.
Accrual
How leave accrues progressively from day one based on ordinary hours, and carries over year to year.
Leave loading
When the 17.5% loading or applicable shift penalties apply to leave payments.
Requesting leave
Notice periods, how to apply and what supporting information may be needed.
Approval
How managers weigh business needs and employee preferences when responding.
Cashing out & shutdowns
Conditions for cashing out, direction to take leave and temporary close-downs.
What's included in this template
Comprehensive coverage of annual leave from accrual to termination
Purpose & scope
Why the policy exists and which employees it applies to.
Policy statement
The commitment to fair, consistent management of leave.
Entitlement under the NES
Four weeks for full-time, pro-rata for part-time, more for some shift workers.
Accrual of annual leave
Progressive accrual from day one and how balances carry over.
Leave loading
Application of 17.5% loading or shift penalties, whichever is greater.
Requesting annual leave
Notice periods, the request process and supporting information.
Approval process
How requests are assessed against operational needs.
Excessive leave balances
Direction to take leave where balances grow too high.
Cashing out & shutdowns
Conditions for cashing out and direction to take leave during a shutdown.
Payment on termination
Paying out accrued leave when employment ends.
Getting annual leave right under the NES
The Australian rules your policy needs to reflect
Awards and agreements can add more
The NES sets the floor — four weeks’ paid leave, or five for certain shift workers. A modern award or enterprise agreement may add entitlements or change how leave loading applies, so always check the instrument that covers your team and let the more generous term prevail.
You can direct leave — within limits
An employer can direct an employee to take annual leave during a shutdown, or where a balance is excessive (commonly more than eight weeks), but only where the requirement is reasonable and any award or agreement conditions are met. Spell out how you’ll give notice so the direction is fair.
How a leave request flows
Apply
The employee requests leave in writing, giving reasonable notice.
Assess
The manager weighs operational needs against the employee's preference.
Approve
Leave is approved (or reasonable alternative dates offered) and recorded.
Track
The balance updates and accrual continues during paid leave.
Accrued but untaken annual leave must be paid out when employment ends, including any leave loading that applies. Pair this policy with our leave application form so every request is captured the same way.
Annual leave accrues progressively from an employee’s first day based on their ordinary hours and keeps accruing during periods of paid leave. For the calculations behind balances and payouts, see our guide on calculating leave entitlements, and for the day-to-day process read managing annual leave requests. The Fair Work Ombudsman publishes the current rules on annual leave, loading and shutdowns.
Who should use this template?
Every Australian employer with permanent staff
Especially useful for businesses with seasonal peaks or an annual shutdown, where directing leave is common.
Compliance resources
Official guidance on annual leave entitlements in Australia.
Manage leave the easy way
RosterElf tracks annual leave balances, handles requests and approvals, and flows leave straight into your roster and payroll — all in one place.
Related templates
Build a complete leave framework
Annual leave policy FAQ
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A complete annual leave policy should cover entitlement and eligibility (the NES minimum of four weeks for full-time staff, pro-rata for part-time, and that casuals don’t accrue leave), how leave accrues from day one and carries over, the request and approval process with notice periods, leave loading, cashing out, employer direction to take leave during shutdowns or where balances are excessive, and payment of accrued leave on termination.
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Yes. The template is aligned with the National Employment Standards, but you should tailor it to reflect your workplace, any modern award or enterprise agreement that applies, and state-based requirements such as long service leave. Store the final version and capture acknowledgements in your HR software.
Before you download
General information only — not legal advice
This document is a general HR template provided for informational purposes only. It is not legal advice and may not reflect the latest changes in legislation or apply to every workplace situation. RosterElf Pty Ltd and the template provider accept no liability for any loss arising from reliance on this document. Users should seek independent legal advice and customise the template to ensure it complies with all relevant laws, awards and workplace requirements.