Holiday entitlement terminology (confused)

[200bhp]

Please can someone explain the following to me:

20 days paid annual leave days with a 17% loading

Whats the "annual loading" part all about then??

[Staz88]

You get 17% more pay whilst on annual leave.

[200bhp]

Staz88 said:

You get 17% more pay whilst on annual leave.

SO why would a company want to do that???

[Staz88]

They have to pay it if it's governed by an award or agreement.

From the Australian Government Fairwork site..

Awards and agreements may provide for annual leave to be paid at a higher rate than required by the NES (for example, payment of annual leave loading in addition to the ordinary rate of pay).

[DavedXB]

200bhp said:

SO why would a company want to do that???

The logic is that whilst you have the days to take off you may not have enough spare cash to actually have a holiday.. So they pay you extra for the weeks off that you have, so you can have fun... Not every company in Aus pays this, I believe that some do not pay it anymore.. If yours does then just enjoy it

[Pommygranite]

Financially crazy but yep - enjoy getting paid more when on holiday!

Welcome to Australia - union methods from the 80's - some win, some lose.

[Bibbs]

I'd just like to have paid holidays.

[Pommygranite]

Bibbs said:

I'd just like to have paid holidays.

Are you a contractor?

[Bibbs]

Pommygranite said:

Are you a contractor?

Shhh!

[Pommygranite]

Bibbs said:

Pommygranite said:

Are you a contractor?

Shhh!

I'm sure you're well rewarded for your ability to tell you main contact to 'get fked' at a moments notice

[suthol]

For those who came in late the annual leave loading was designed so that those workers who work regular rostered overtime, shift work, higher duties etc weren't disadvantaged financially when taking their annual leave.

There were too many people in jobs that were demanding both physically and mentally who wouldn't take leave. Not to mention the fact that the employers have to budget for all leave held by their staff should they decide to take time off which screws cash flow and short term investments.

Me I love it, I don't get paid overtime and have just knocked off after a 16 hour day. ( midnight is the new beer o'clock )