Pay annual leave loading where the award or contract provides
Most modern awards require 17.5% loading on annual leave taken or paid out on termination.
Who must comply
Employers whose modern award or agreement provides for annual leave loading.
What triggers it
Employee takes annual leave or termination triggers payout.
When due
On payment of leave / termination.
Evidence required
Award analysis; payslip + payment evidence including loading.
Max penalty
Civil penalty for underpayment + serious-contravention 10× multiplier potential
Summary
Section 90 Fair Work Act requires payment for accrued + untaken annual leave on termination. Most modern awards (and some enterprise agreements) require an additional 17.5% loading on annual leave taken or paid on termination. Loading must match the award basis (typically OTE).
Enforced by
Source legislation
Topics
Source: https://fairwork.gov.au/leave/annual-leave. Rules Mate is not a law firm. Always verify against the live regulator source before acting.