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Does Annual Leave Accrue Leave?

If you have ever wondered the answer to this question, well here is the complete overview. Fundamentally, annual leave does accrue whilst an employee is on a period of paid annual leave.

For employers subject to the National workplace system, section 87(2) of the Fair Work Act (the “Act”) 2009 states that “an employee’s entitlement to paid annual leave accrues progressively during a year of service according to the employee’s ordinary hours of work and accumulates from year to year”. Therefore annual leave continues to accrue during any period of “service” – Section 22 of the Act notes that a period of service is a period during which the employee is employed by the employer, but does not include any period which does not count as service….”