Annual leave entitlements and leave loading are areas where NDIS and disability care providers regularly get caught out — either by underpaying leave loading, incorrectly calculating leave accruals for shift workers, or misunderstanding when the SCHADS Award rate applies.
Full-time employees under the SCHADS Award are entitled to four weeks of paid annual leave per year (pro rata for part-time). Casual employees do not accrue annual leave — they receive casual loading instead. Shift workers who are rostered on public holidays as part of their ordinary roster may be entitled to an additional week of annual leave (five weeks total) — worth checking for your SIL and overnight care teams.
Under the SCHADS Award, employees are entitled to an annual leave loading of 17.5% when they take annual leave. This loading is calculated on the employee's ordinary rate of pay — not on the average of their penalty rates or overtime. Where an employee would have ordinarily earned a higher amount during the leave period based on their roster, they are entitled to the higher of the leave loading or the penalty-rate equivalent. Leave loading is an OTE component for superannuation purposes — contributions must be paid on leave loading amounts.
When employment ends, any accrued but untaken annual leave must be paid out at the time of termination, including the 17.5% loading on the untaken leave balance. Leave balances must be expressed in hours to account accurately for variations in ordinary hours worked by different employees.
Best practices include: requiring advance notice (typically two to four weeks); monitoring leave balances proactively — employees accumulating over eight weeks should be encouraged to take leave; planning cover in your roster system when leave is approved; and keeping accurate records for seven years as required by the Fair Work Act.
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