The Manufacturing and Associated Industries and Occupations Award 2020 covers a broad workforce — from factory production lines and food processing to engineering workshops and printing operations. The award’s leave provisions reflect the industry’s reality: continuous operations, rotating shift patterns, and rostered days off that interact with annual leave calculations in ways that trip up even experienced payroll teams.
This guide covers the Manufacturing Award’s leave entitlements in 2026: annual leave, leave loading, the shiftworker definition, rostered days off, and the compliance traps specific to the manufacturing sector.
Key takeaways
- Full-time manufacturing employees receive 4 weeks annual leave, with 5 weeks for shiftworkers.
- The Manufacturing Award provides 17.5% leave loading on annual leave, subject to a “greater of” test against penalty rates.
- Rostered days off (RDOs) interact with annual leave — employees on annual leave during an RDO may receive an additional day.
- Full-time employees accrue 10 days personal/carer’s leave per year, consistent with the NES.
- Continuous shiftworkers have specific provisions that affect both leave accrual and payment calculations.
Annual leave under the Manufacturing Award
Full-time employees covered by the Manufacturing and Associated Industries and Occupations 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, shift penalties, and allowances do not count toward accrual.
The Manufacturing Award provides an additional week for qualifying shiftworkers: 5 weeks (190 hours). The shiftworker definition covers employees who work rotating shifts across all days including weekends and public holidays, relevant for manufacturing businesses with continuous operations.
Leave loading
The Manufacturing 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 manufacturing employees working regular weekend or public holiday shifts — particularly those on continuous operations — the penalty rate equivalent often exceeds 17.5%.
Worked example
Wei works full-time in food manufacturing, earning $29.00/hour base rate on a rotating shift pattern that includes weekends.
- One week of annual leave base pay: 38 hours × $29.00 = $1,102.00
- Leave loading at 17.5%: $1,102.00 × 17.5% = $192.85
- Penalty rate equivalent for a typical rotating week (including one Saturday at 150%): exceeds $192.85
- Wei receives: the penalty rate equivalent
Rostered days off and annual leave
A distinctive feature of the Manufacturing Award is the interaction between rostered days off (RDOs) and annual leave. Under many manufacturing enterprise agreements and award provisions:
- When an employee takes annual leave and an RDO falls during that period, the employee may be entitled to an additional day of leave or payment
- This prevents employees from losing the benefit of their RDO when they are on annual leave
- The specific treatment depends on the applicable enterprise agreement or award clause
This is one of the most commonly missed provisions in manufacturing payroll. Failing to account for RDOs during annual leave periods systematically underpays employees who have structured their roster around RDO entitlements.
Personal/carer’s leave
The Manufacturing 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.
Manufacturing-specific considerations:
- Evidence requirements commonly include medical certificates
- Some manufacturing environments have specific health and safety reporting requirements that interact with personal leave
- 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 manufacturing employees, including casuals, receive 2 days compassionate leave per occasion and 10 days paid family and domestic violence leave per year.
Long service leave
Long service leave is state-based:
| 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 |
Manufacturing businesses operating across multiple states must track state-specific entitlements separately.
Continuous shiftwork provisions
Manufacturing businesses with continuous operations (24/7 production) often employ continuous shiftworkers. The Manufacturing Award has specific provisions for these workers:
- 5 weeks annual leave for qualifying shiftworkers
- Leave loading subject to the “greater of” test
- Specific rules about how shift patterns affect leave accrual and payment
Continuous shiftwork can create complexity in calculating the “greater of” test, as the penalty rate comparison must account for the specific shift pattern the employee would have been working.
Common compliance traps in manufacturing
1. Missing RDO interactions during annual leave
The most common manufacturing-specific error. When an RDO falls during an annual leave period, the employee may be entitled to an additional day. Missing this underpays the employee systematically.
2. Incorrect continuous shiftworker classification
Not all shiftworkers in manufacturing qualify as continuous shiftworkers. The distinction affects both the number of weeks of leave and the loading calculation.
3. Including overtime in accrual calculations
Overtime is common in manufacturing but does not count toward leave accrual. Including it inflates balances and creates downstream errors.
4. Ignoring the “greater of” test
Paying only 17.5% loading without comparing to penalty rates underpays employees who work high-penalty shifts.
5. Enterprise agreement vs award confusion
Many manufacturing businesses have enterprise agreements that sit above the award. Applying the award when an enterprise agreement governs can result in incorrect entitlements.
Putting it into practice
Five checks cover most Manufacturing Award leave compliance:
- Identify which employees qualify as shiftworkers or continuous shiftworkers.
- Track RDO interactions during annual leave periods.
- Apply the “greater of” test for leave loading against penalty rates.
- Verify whether the award or an enterprise agreement governs each employee’s entitlements.
- Exclude overtime from leave accrual calculations.
Tracking RDO interactions during annual leave, continuous shiftworker classifications, and the “greater of” leave loading test across rotating manufacturing rosters is exactly the kind of complexity that creates payroll risk. A leave management system built for Australian awards automates these calculations and flags compliance gaps before they become underpayment claims.
Sources
- Manufacturing and Associated Industries and Occupations Award 2020 — Fair Work Commission
- Annual leave — Fair Work Ombudsman
- Sick and carer’s leave — 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 or enterprise agreement provisions with the Fair Work Ombudsman or an employment lawyer.
Frequently asked questions
How much annual leave do manufacturing 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).
What happens to rostered days off during annual leave?
Under many manufacturing enterprise agreements and award provisions, when an RDO falls during an annual leave period, the employee may be entitled to an additional day of leave or payment. Check your specific award or enterprise agreement clause.
Does the Manufacturing 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 manufacturing 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.
What is the difference between a shiftworker and a continuous shiftworker?
A shiftworker under the Manufacturing Award works rotating shifts across all days. A continuous shiftworker works in operations that run 24/7 with specific shift patterns. The distinction affects the number of leave weeks and the loading calculation.