Leave Entitlements

Understanding the difference between Annual Leave Entitlement and Annual Leave Accrual

Outline

• Accrual vs. Entitlement: What's the Difference? This section explains the fundamental difference between leave that is "accrued" and leave that is an "entitlement." Learn how annual leave builds up (accrues) throughout the year and then converts into a usable block of leave (entitlement) on an employee's work anniversary.
• Overview of Paid Leave Entitlements: This article provides a summary table of the various types of paid leave available under the Holidays Act 2003. For each leave type, the table outlines the qualifying period an employee must work and the amount of leave they are entitled to receive.

Annual Leave Entitlement	When an employee has completed 12 months of continuous employment, the four weeks become a leave entitlement.
Annual Leave Accrual	From the leave anniversary date to the present. When payroll rolls around and reaches the leave anniversary date again, the leave accrued becomes leave entitlement, and leave accrual starts accruing from zero again.

Holidays Act 2003, types of leave, qualifying periods to get leave entitlement, and the number of days entitled.

PAID LEAVE TYPES

Leave name/Type of leave	Qualifying Period	No. of Days Entitled
Annual holiday taken	12 months of continuous employment	4 weeks (a week defined by agreement). Accumulates if not used
Annual holiday (Ent) paid out (by agreement while employed)	Only Ent from the current Ent year	Max of 1 week of current Ent. from current Ent. year
Annual holiday paid in advance	Has not met 12 months of continuous employment	What has been approved to be taken
Annual holiday paid on termination	NA	Annual holiday Ent left to be paid out on termination
Sick leave	6 months of continuous employment	10 days (can accumulate up to 20 days)
Bereavement leave	6 months of continuous employment	3 days for close family members, 1 day for everyone else, if the employer accepts
Public holiday worked	Works on a public holiday	Up to 12 days per year if otherwise working day for the employee
Public holiday taken	Takes a public holiday	Up to 12 days per year if an otherwise working day for the employee
Alternative Holiday	Otherwise working day	When earned value is based on the day taken in the future as the alternate holiday
Family violence leave	6 months of continuous employment	10 days each 12 months (does not accumulate)