The Building and Construction General On-site Award 2020 is one of Australia’s most complex modern awards, covering construction workers, tradespeople, labourers, and site-based staff across residential, commercial, and infrastructure projects. Its leave provisions must navigate a workforce that is often project-based, frequently changes sites, and includes a high proportion of casual and fixed-term employees.
This guide covers the Construction Award’s leave entitlements in 2026: annual leave, leave loading, personal/carer’s leave, and the compliance traps that create underpayment risk across the building and construction sector.
Key takeaways
- Full-time construction employees receive 4 weeks annual leave under the Construction Award, with 5 weeks for shiftworkers.
- The award provides 17.5% leave loading on annual leave, paid on the base rate of pay.
- Full-time employees accrue 10 days personal/carer’s leave per year, consistent with the NES.
- Casual construction workers receive 25% loading but no paid leave, and must be offered permanent conversion after 12 months.
- Public holidays and rostered days off interact with leave calculations in ways that are unique to the construction industry.
Annual leave under the Construction Award
Full-time employees covered by the Building and Construction General On-site Award receive the NES minimum of 4 weeks (152 hours for a 38-hour week) of paid annual leave, accruing progressively based on ordinary hours worked. Overtime, site allowances, and travel payments do not count toward accrual.
The Construction Award provides an additional week for qualifying shiftworkers: 5 weeks (190 hours). The shiftworker definition in the Construction Award generally covers employees who work rotating shifts across all days including weekends and public holidays — relevant for construction projects with 7-day programs.
Leave loading
The Construction Award provides 17.5% leave loading on annual leave, calculated on the base rate of pay. The “greater of” provision applies: the employee receives whichever is higher — the 17.5% loading or the penalty rates they would have earned if working during that period.
For construction employees working weekends or public holidays, penalty rates may exceed 17.5%. This is particularly relevant for commercial and infrastructure projects with weekend work.
Worked example
Jake is an electrician working full-time on a commercial construction project, earning $38.00/hour base rate. He regularly works Saturdays at 150%.
- One week of annual leave base pay: 38 hours × $38.00 = $1,444.00
- Leave loading at 17.5%: $1,444.00 × 17.5% = $252.70
- Penalty rate equivalent for a Saturday shift: 7.6 hours × $38.00 × 150% = $433.20 — the difference on that shift alone exceeds the 17.5% loading
- Jake receives: the penalty rate equivalent
Personal/carer’s leave
The Construction Award follows the NES: full-time employees receive 10 days per year of paid personal/carer’s leave, accruing progressively and accumulating year to year. Part-time employees receive pro-rata entitlements.
Construction-specific considerations:
- Evidence requirements often include medical certificates, and some site inductions require specific documentation
- Personal/carer’s leave can be used for the employee’s own illness, caring responsibilities, or unexpected family emergencies
- The employer can request evidence but must not impose excessive requirements
Casual employees receive 2 days unpaid carer’s leave per occasion.
Compassionate leave and family leave
All construction employees, including casuals, receive 2 days compassionate leave per occasion and 10 days paid family and domestic violence leave per year. Casual employees receive unpaid compassionate leave and paid family violence leave.
Long service leave
Long service leave is state-based and varies by jurisdiction:
| State | Qualification | Entitlement |
|---|---|---|
| Victoria | 7 years | 8.67 weeks; 4.33 weeks per subsequent 5 years |
| NSW | 10 years | 2 months; 1 month per subsequent 5 years |
| Queensland | 10 years | 8.67 weeks; 4.33 weeks per subsequent 5 years |
| South Australia | 10 years | 13 weeks |
Construction workers who move between states for projects may have long service leave entitlements in multiple jurisdictions, creating additional tracking complexity.
Casual and fixed-term employees
The construction industry has a significant casual workforce. Casual employees receive the 25% casual loading in lieu of paid leave. Key award provisions:
- Minimum engagement: 4 hours for most casual construction employees
- Casual conversion: After 12 months of regular employment, the employer must proactively offer permanent conversion
- Refusal: Only on reasonable business grounds, documented in writing
Fixed-term contracts in construction often align with project timelines. The Closing Loopholes legislation introduced restrictions on fixed-term contracts — a second fixed-term contract for the same role cannot exceed 2 years total.
Common compliance traps in construction
1. Including allowances in leave accrual
Site allowances, travel payments, and tool allowances are often excluded from ordinary earnings for leave accrual purposes. Including them inflates accruals and creates downstream payment errors.
2. Ignoring the “greater of” test for leave loading
Construction employees working weekends and public holidays frequently have penalty rate equivalents that exceed 17.5%. Paying only the loading underpays these employees.
3. Not tracking casual conversion across projects
Construction workers who work a regular pattern across multiple projects may meet the 12-month casual conversion trigger even though no single project lasts 12 months. The cumulative employment period counts.
4. Misclassifying allowances as ordinary pay
The distinction between ordinary hours (which attract leave accrual) and allowances/overtime (which do not) is a frequent source of error. Each allowance must be checked against the award definition.
5. Missing long service leave across states
Workers who move between states for projects accumulate long service leave in multiple jurisdictions. Failing to track this creates a significant liability on termination.
Putting it into practice
Five checks cover most Construction Award leave compliance:
- Classify allowances correctly — ordinary pay vs allowance — for leave accrual purposes.
- Apply the “greater of” test for leave loading against penalty rates on every annual leave payment.
- Track the 12-month casual conversion trigger across cumulative employment, not just single projects.
- Track long service leave entitlements across multiple states for itinerant workers.
- Include leave loading in termination payouts where the award requires it.
Tracking leave accrual across construction projects — where allowances, penalty rates, and multi-state long service leave create overlapping compliance obligations — is exactly the kind of complexity that generates payroll risk. A leave management system built for Australian awards automates these calculations and flags gaps before they become underpayment claims.
Sources
- Building and Construction General On-site Award 2020 — Fair Work Commission
- Annual leave — Fair Work Ombudsman
- Casual employment — Fair Work Ombudsman
- Long service leave — Fair Work Ombudsman
Last updated: 26 July 2026. This article is general guidance, not legal advice. Confirm current award provisions with the Fair Work Ombudsman or an employment lawyer.
Frequently asked questions
How much annual leave do construction employees get?
Full-time employees receive 4 weeks (152 hours on a 38-hour week). Shiftworkers — those who regularly work rotating shifts across all days including weekends and public holidays — receive 5 weeks (190 hours).
Does the Construction Award include leave loading?
Yes. The award provides 17.5% leave loading on annual leave, calculated on the base rate. A “greater of” provision applies — the employee receives whichever is higher: the 17.5% or the penalty rates they would have earned if working.
Do casual construction employees get paid sick leave?
No. Casual employees do not receive paid personal/carer’s leave. They are entitled to 2 days unpaid carer’s leave per occasion and 2 days paid compassionate leave per occasion.
Are site allowances included in leave accrual?
It depends on the specific allowance. Ordinary hourly rate components accrue leave; travel allowances, tool allowances, and overtime typically do not. Check the award classification and allowance definitions.
When must casual construction employees be offered permanent conversion?
After 12 months of regular casual employment — including cumulative employment across projects — the employer must proactively offer permanent conversion. Refusal is permitted only on reasonable business grounds and must be documented.