How many weeks of annual leave does an employee get?
- An employee (other than a casual employee) accumulates 4 weeks of paid annual leave for each year of service with the employer. An employee’s entitlement to annual leave accumulates continuously based on the number of ordinary hours they work.
What is the accounting standard for long service leave in Australia?
- Accounting for Long Service Leave (LSL) and annual leave1 is outlined in the Australian Accounting Standard AASB 119 Employee Benefits2. Since the previous Treasury Circular (NSW TC14/04) was issued on 19 March 2014, there have been no major changes in AASB 119.
Is annual leave an expense or liability?
- As with other employee benefits, where material, the on-costs associated with annual leave (i.e. payroll tax, workers compensation insurance, LSL and superannuation), are recognised as expenses and liabilities (and revenue, where assumed by the Crown) when employees have rendered related services to the entity.
What happens if an employee is injured while on annual leave?
- Similarly, if an employee is sick or injured while on annual leave, the employee can use their paid sick leave entitlement instead of using their annual leave for the time they are unwell. Under the NES, annual leave is paid at the employee’s base pay rate for all ordinary hours worked. Ordinary hours under the NES can’t exceed 38 hours in a week.
SA. Usually, annual leave accumulates during workers compensation. The rules are different for employees if they're totally incapacitated on workers compensation for 52 weeks or more. Annual leave for these employees is treated as having been taken and paid for by the workers compensation payments.