The General Retail Industry Award 2020 is one of Australia’s most widely applied modern awards, covering everyone from shop assistants to department store managers. Its leave provisions are more detailed than many employers realise — particularly around the interaction between leave loading, penalty rates, and the shiftworker definition that grants an extra week of annual leave.

This guide covers the General Retail Industry Award’s leave entitlements in 2026: annual leave, personal/carer’s leave, casual conversion, and the compliance traps that drive underpayment claims across the retail sector.

Key takeaways

  • Full-time retail employees receive 4 weeks annual leave, accruing progressively on ordinary hours.
  • The award provides 17.5% leave loading on annual leave, subject to a “greater of” test against penalty rates.
  • Employees defined as “retail award shiftworkers” receive an additional week: 5 weeks (190 hours).
  • Casual employees must be offered permanent conversion after 12 months of regular employment under the award’s casual conversion clause.
  • Part-time employees receive pro-rata leave entitlements based on their ordinary hours.

Annual leave under the Retail Award

Full-time employees covered by the General Retail Industry Award receive the NES minimum of 4 weeks (152 hours for a 38-hour week) of paid annual leave. Leave accrues progressively during each pay period based on ordinary hours worked. Overtime, commissions, and bonuses do not count toward accrual.

The award defines “retail award shiftworker” for the purpose of the additional fifth week. To qualify, the employee must work rotating shifts that include Saturdays, Sundays, and public holidays. If your roster requires weekend and public holiday work on a rotating basis, qualifying employees are entitled to 5 weeks (190 hours).

Leave loading

The Retail Award provides 17.5% leave loading on annual leave, calculated on the employee’s base rate of pay. The loading is subject to 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 retail employees who regularly work Saturdays (150% or 125% depending on the classification) and Sundays (175% or 200%), the penalty rate equivalent typically exceeds the 17.5% loading. The “greater of” test matters most for employees who work high-penalty shifts.

Worked example

Mia works full-time at a clothing store, earning $27.00/hour base rate. She regularly works Saturdays at 150%.

  • One week of annual leave base pay: 38 hours × $27.00 = $1,026.00
  • Leave loading at 17.5%: $1,026.00 × 17.5% = $179.55
  • Penalty rate equivalent (one Saturday shift): 7.6 hours × $27.00 × 150% = $307.80 vs ordinary day $205.20 — difference of $102.60 for that shift alone
  • Total penalty rate equivalent for the week exceeds $179.55
  • Mia receives: the penalty rate equivalent (the higher amount)

Personal/carer’s leave

The Retail 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 based on their ordinary hours.

Employees can use this leave for their own illness or injury, to care for an immediate family member or household member, or for unexpected family emergencies. The employer can request evidence (medical certificate or statutory declaration) but cannot impose excessive evidence requirements.

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

Part-time employee leave

Part-time employees under the Retail Award receive leave on a pro-rata basis. For an employee working 20 hours per week:

  • Annual leave: 4 weeks × 20 hours = 80 hours per year
  • Personal/carer’s leave: 10 days × 4 hours (20/5) = 40 hours per year
  • Leave loading: calculated on the part-time employee’s base rate for their ordinary hours

When a part-time employee’s ordinary hours change, their leave entitlements must be recalculated. Failing to adjust creates either over-accrual or under-accrual — both are compliance risks.

Casual employee entitlements

Casual retail employees receive the 25% casual loading on their hourly rate in lieu of paid leave entitlements. Key rules:

  • Minimum engagement: 3 hours for most casual employees
  • Casual conversion: After 12 months of regular employment, the employer must proactively offer permanent conversion
  • Refusal: Can only be refused on reasonable business grounds, and the offer must be in writing

The casual conversion obligation is one of the most commonly missed requirements in retail. Employers who do not track the 12-month trigger end up facing claims for back-pay of leave entitlements from the date conversion should have been offered.

Cashing out and termination payout

During employment, annual leave can be cashed out only if the award permits it. The employee must retain a minimum 4-week balance, and each cash-out requires a separate written agreement.

On termination, all accrued unused annual leave must be paid out. Whether leave loading applies on the payout depends on the specific award clause — the Retail Award’s position on this should be checked against the current version of the award.

Common compliance traps in retail

1. Misclassifying employees under the wrong award level

The Retail Award has multiple classification levels from Level 1 (entry-level shop assistant) to Level 8 (proprietor). Misclassification affects not just pay rates but leave loading calculations and penalty rate comparisons.

2. Ignoring the “greater of” test

Paying only 17.5% loading without comparing it to penalty rates the employee would have earned systematically underpays employees who work high-penalty shifts.

3. Missing the casual conversion deadline

After 12 months of regular casual employment, the conversion offer must be made. Missing this deadline can result in the employee being treated as a permanent from the date conversion was due.

4. Incorrect part-time accrual

Failing to recalculate part-time leave when hours change is one of the most common underpayment sources in retail, where hours fluctuate seasonally.

Putting it into practice

Five checks cover most Retail Award leave compliance:

  1. Verify the correct classification level for every employee.
  2. Apply the “greater of” test for leave loading against penalty rates on every annual leave payment.
  3. Track the 12-month casual conversion trigger and proactively make the offer.
  4. Recalculate part-time leave entitlements when ordinary hours change.
  5. Include leave loading in termination payouts where the award requires it.
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Tracking the “greater of” leave loading calculation across rotating retail rosters — where penalty rates vary by day, time, and classification level — 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

How much annual leave do retail employees get?

Full-time employees receive 4 weeks (152 hours on a 38-hour week). Employees who qualify as retail award shiftworkers — working rotating shifts across all days including weekends and public holidays — receive 5 weeks (190 hours).

What is leave loading in the retail award?

Leave loading is an additional 17.5% payment on the employee’s base rate when taking annual leave. The Retail 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 retail 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 retail 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 in writing.

Do part-time retail employees get pro-rata leave?

Yes. Part-time employees receive all NES and award leave entitlements on a pro-rata basis calculated from their ordinary hours. When hours change, leave entitlements must be recalculated.