The Hospitality Industry (General) Award 2020 covers hotels, motels, restaurants, bars, cafés, catering, and a wide range of accommodation and food service businesses across Australia. Its leave provisions reflect the industry’s reality: irregular hours, weekend-heavy rosters, and a workforce that is substantially casual.

This guide covers the Hospitality Award’s leave entitlements in 2026: annual leave and leave loading, personal/carer’s leave, the shiftworker definition that matters, and the compliance traps that drive underpayment claims across the sector.

Key takeaways

Full-time hospitality employees receive 4 weeks annual leave, accrual based on ordinary hours only.
The Hospitality Award provides 17.5% leave loading on annual leave, subject to a “greater of” test against penalty rates.
Employees defined as “hospitality industry shiftworkers” receive 5 weeks (190 hours).
Casual employees receive no paid leave but are entitled to 25% loading and must be offered permanent conversion after 12 months.
Minimum engagement of 3 or 4 hours applies for casual employees depending on the classification.

Annual leave under the Hospitality Award

Full-time employees covered by the Hospitality Industry (General) 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, commissions, and bonuses do not count toward accrual.

The award’s definition of “hospitality industry shiftworker” determines eligibility for the additional fifth week. A hospitality shiftworker is an employee who regularly works shifts across all seven days, including weekends and public holidays. If your business operates seven days — which most hotels, restaurants, and venues do — qualifying employees are entitled to 5 weeks (190 hours).

Leave loading

The Hospitality Award provides 17.5% leave loading on annual leave, calculated on the base rate. The award uses a “greater of” provision: the employee receives whichever is higher — the 17.5% loading or the penalty rates they would have earned if working during that period.

For hospitality employees who regularly work weekends (150% on Saturdays, 175% on Sundays in many classifications) and public holidays (250%), the penalty rate equivalent frequently exceeds 17.5%.

Worked example

Liam works full-time as a hotel front desk employee, earning $25.80/hour base rate. He regularly works Saturdays (150%) and Sundays (175%).

One week of annual leave base pay: 38 hours × $25.80 = $980.40
Leave loading at 17.5%: $980.40 × 17.5% = $171.57
Penalty rate equivalent (1 Saturday + 1 Sunday): 7.6 hrs × $25.80 × 150% + 7.6 hrs × $25.80 × 175% = $294.12 + $343.14 = $637.26 (on those shifts alone, well above $171.57)
Liam receives: the penalty rate equivalent

Personal/carer’s leave

The Hospitality 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 a pro-rata amount.

Employees can use this leave for their own illness or injury, to care for an immediate family or household member, or for unexpected family emergencies. The employer can request evidence — a medical certificate or statutory declaration — but demanding certificates for every minor absence may breach workplace laws.

Casual employees receive 2 days unpaid carer’s leave per occasion.

Compassionate leave

All employees, including casuals, receive 2 days compassionate leave per occasion. Full-time and part-time employees are paid; casuals are unpaid. The leave is available when a member of the immediate family or household has a life-threatening illness or injury, passes away, or in cases of miscarriage or stillbirth.

Long service leave

Long service leave is state-based legislation, not covered by the Hospitality Award. Entitlements vary:

Victoria: 8.67 weeks after 7 years (lowest threshold in Australia)
New South Wales: 2 months after 10 years
Queensland: 8.67 weeks after 10 years
South Australia: 13 weeks after 10 years

Hospitality businesses operating across multiple states must track state-specific entitlements separately.

Casual employee rules

Casual hospitality employees receive the 25% casual loading in lieu of paid leave. Key award provisions:

Minimum engagement: 3 hours for most classifications, 4 hours for some higher-level roles
Casual conversion: After 12 months of regular employment, the employer must proactively offer permanent conversion
Refusal: Only on reasonable business grounds, with the offer in writing

The hospitality industry has one of the highest casual employment rates in Australia. The casual conversion obligation is frequently missed, and missing it can result in claims for back-payment of leave entitlements from the date conversion was due.

Common compliance traps in hospitality

1. Paying only 17.5% loading instead of penalty rates

The “greater of” test is essential for hospitality employees. Weekend and public holiday penalty rates regularly exceed 17.5%, and paying only the loading is a systemic underpayment.

2. Missing casual conversion deadlines

With a high casual workforce, the 12-month conversion trigger passes quickly. Failing to track and offer conversion creates liability across your entire casual workforce.

3. Undermining minimum engagement periods

Scheduling a casual employee for a 2-hour shift and paying only 2 hours violates the minimum engagement clause. The full minimum must be paid.

4. Incorrect shiftworker classification

Not all hospitality employees qualify as shiftworkers for the fifth week. The definition requires regular shifts across all seven days — a barista who only works weekdays does not qualify, even though they work in hospitality.

5. Part-time hours not adjusted

When a part-time employee’s ordinary hours change, their leave entitlements must be recalculated. This is especially common in hospitality, where hours fluctuate with seasonal demand.

Putting it into practice

Five checks cover most Hospitality Award leave compliance:

Identify which employees qualify as hospitality industry shiftworkers for the fifth week.
Apply the “greater of” test for leave loading against penalty rates every time annual leave is paid.
Track the 12-month casual conversion trigger and proactively make the offer.
Enforce the minimum engagement period for all casual shifts.
Recalculate part-time leave when ordinary hours change.

You can take advantage of the free 14 days trial and explore Leave Balance.

Tracking the “greater of” leave loading calculation against penalty rates across a rotating hospitality roster — where penalty rates change by day, time, and role — is exactly the kind of complexity that creates payroll risk. A leave management system built for Australian awards automates this comparison and flags compliance gaps before they become underpayment claims.

Sources

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

What is leave loading in the hospitality award?

Leave loading is an additional 17.5% payment on the employee’s base rate when taking annual leave. The Hospitality Award includes a “greater of” provision — the employee receives whichever is higher: 17.5% loading or the penalty rates they would have earned if working.

Do casual hospitality 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.

When must casual hospitality employees be offered permanent conversion?

After 12 months of regular casual employment, the employer must proactively offer permanent conversion. Refusal is permitted only on reasonable business grounds and must be documented in writing.

How many weeks of annual leave do hospitality employees get?

Full-time employees receive 4 weeks (152 hours on a 38-hour week). Hospitality industry shiftworkers — those who regularly work rotating shifts across all days including weekends and public holidays — receive 5 weeks (190 hours).

What is the minimum engagement for casuals in hospitality?

Most casual employees have a minimum engagement of 3 hours per shift. Some higher-classification roles require a 4-hour minimum. The employer must pay the full minimum even if work finishes earlier.

Australia Hospitality Award: Leave Entitlements Guide