Annual Leave Loading definition

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Leave Loading

Leave loading is an extra payment on top of your annual leave pay that is usually an additional 17.5% of your normal pay. 

Whether you are entitled to it is dependent on your award, enterprise agreement or employment contract.

Where did leave loading come from?

Annual leave loading was inherited from the 1970s labour movement when many industries were accustomed to working overtime hours.

When workers took annual leave, they were missing out on the opportunity to work overtime and earn extra income so ‘leave loading’ was introduced so employees still got some additional pay while they were on holidays. 

Whilst working arrangements have evolved over time, for many employment awards, agreements and contracts annual leave loading has continued to be included.

However, unlike paid leave, leave loading is not an automatic entitlement under the National Employment Standards (NES) and the Fair Work Act 2009.

What about leave loading for call centre workers?

Call centre workers often come under the award, agreement or contract that applies to their particular industry however there is a Call Centre Award and for many call centre workers, this is the one that will be applicable to you.

Under the Contract Call Centre Award, there is a provision for Annual Leave Loading of 17.5% under clause 22.5.

I suggest you speak to your Human Resources (HR) team for more information or refer to the links at the bottom of this article for more information.

When is Annual Leave Loading paid?

If you’re eligible for leave loading, you’ll usually receive your leave loading payment at the same time as your annual leave pay.
 
This is usually received in your standard pay, whether this is paid by your employer before, during or after your time away.

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