Summarise with AI
What an RDO is
A rostered day off (RDO) is a paid day off that an employee accrues by working slightly longer ordinary hours across a work cycle. Under many Modern Awards and enterprise agreements, an employee can bank a small amount of time each day or week — building up to a full paid day off — without any reduction in pay. It is a way of spreading a standard week (often 38 hours) across working patterns that suit the business and the employee.
How an RDO accrues
The classic example is a 38-hour week worked as five 8-hour days. Each day the employee works a little more than the 7.6-hour daily average, and the surplus (0.4 hours a day) accumulates. Over a four-week cycle that surplus adds up to a full 7.6-hour day, which is then taken as a paid rostered day off.
A typical RDO cycle
RDO vs annual leave and TOIL
Rostered day off
- Built into ordinary hours
- Time worked in advance, banked
- Does not reduce annual leave
Annual leave / TOIL
- Annual leave: 4 weeks/year (NES)
- TOIL: time off instead of overtime pay
- Separate from the ordinary hours cycle
An RDO is distinct from both annual leave (a separate NES entitlement) and time in lieu (time off taken instead of overtime pay). An RDO is time built into the ordinary hours arrangement itself.
Managing RDOs
Because RDOs depend on tracking ordinary hours accurately across a cycle, they need careful record-keeping and clear rostering. Employers and employees usually agree when RDOs fall, and the accrued balance must be tracked so days off are taken (or paid out) correctly. Good rostering practices — see our guide to creating a roster — keep the cycle balanced, and an award interpretation engine ensures the hours are costed correctly.
RDO rules come from the award
Whether RDOs apply, how they accrue, and how much notice is needed to change one are all set by the applicable Modern Award or enterprise agreement. Not every award provides RDOs, so always confirm the arrangement that applies.
Common mistakes with RDOs
Confusing RDOs with annual leave
Deducting an RDO from annual leave balances double-counts and shortchanges the employee.
Not tracking accrued balances
Without accurate hours records, RDO balances drift and days off (or payouts) become wrong.
Ignoring payout on termination
Accrued but untaken RDO time often must be paid out when employment ends — check the award.
Key takeaways
A rostered day off is a paid day off earned by working slightly longer ordinary hours across a work cycle, banking small amounts of time until they add up to a full day. RDOs are set by the applicable award or agreement and are separate from annual leave and time in lieu.
Managing RDOs relies on accurate tracking of ordinary hours across each cycle. RosterElf records hours, schedules rostered days off and keeps the work cycle balanced, so RDO accruals stay correct and compliant.
Managing RDO accruals across a work cycle? RosterElf tracks ordinary hours and schedules rostered days off so the cycle stays balanced and compliant.
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