The Storage Services Award 2020 covers warehouse operators, storepersons, forklift drivers, pick-pack staff, and distribution centre workers across Australia. With the growth of e-commerce, this award now covers one of the fastest-growing segments of the Australian workforce — and its leave provisions are more nuanced than many warehouse employers expect.
This guide covers the Storage Services Award’s leave entitlements in 2026: annual leave, leave loading, the shiftworker definition, casual conversion, and the compliance traps specific to warehousing and storage.
Key takeaways
- Full-time warehouse employees receive 4 weeks annual leave, with 5 weeks for qualifying shiftworkers.
- The Storage Services Award provides 17.5% leave loading on annual leave, subject to a “greater of” test against penalty rates.
- Full-time employees accrue 10 days personal/carer’s leave per year, consistent with the NES.
- Casual warehouse employees must be offered permanent conversion after 12 months of regular employment.
- Minimum engagement periods apply for casual employees, typically 3 or 4 hours per shift.
Annual leave under the Storage Services Award
Full-time employees covered by the Storage Services 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 Storage Services 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 distribution centres that operate seven days to meet e-commerce demand.
Leave loading
The Storage Services 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.
Warehouse employees who regularly work weekends — particularly in e-commerce distribution where Saturday and Sunday shifts are common — often have penalty rate equivalents that exceed 17.5%.
Worked example
Priya works full-time in an e-commerce distribution centre, earning $27.50/hour base rate. She regularly works Saturdays at 150% and Sundays at 175%.
- One week of annual leave base pay: 38 hours × $27.50 = $1,045.00
- Leave loading at 17.5%: $1,045.00 × 17.5% = $182.88
- Penalty rate equivalent (1 Saturday + 1 Sunday): significantly exceeds $182.88
- Priya receives: the penalty rate equivalent
Personal/carer’s leave
The Storage Services 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.
Warehousing-specific considerations:
- High-volume distribution centres often have specific attendance management policies that interact with personal leave
- Evidence requirements commonly include medical certificates
- 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 warehouse 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 |
Warehousing businesses with distribution centres in multiple states must track state-specific entitlements separately.
Casual employee rules
The warehousing sector has a significant casual workforce, particularly during peak periods. Casual employees receive the 25% casual loading in lieu of paid leave. Key award provisions:
- Minimum engagement: 3 or 4 hours for most casual warehouse employees depending on classification
- Casual conversion: After 12 months of regular employment, the employer must proactively offer permanent conversion
- Refusal: Only on reasonable business grounds, documented in writing
Peak-period casuals who work a regular pattern across multiple peak seasons may meet the 12-month cumulative trigger for conversion. Tracking this across seasonal engagements is essential.
Common compliance traps in warehousing
1. Ignoring weekend penalty rates in the “greater of” test
E-commerce distribution centres commonly roster staff for Saturday and Sunday shifts. These penalty rates regularly exceed 17.5%, and paying only the loading underpays employees systematically.
2. Missing casual conversion across seasonal peaks
Casual employees who work every peak season (November-December, Easter) may accumulate 12 months of regular employment over multiple seasons. The cumulative period counts toward the conversion trigger.
3. Minimum engagement violations
Scheduling a casual employee for a 2-hour pick shift and paying only 2 hours violates the minimum engagement clause. The full 3 or 4-hour minimum must be paid.
4. Including overtime in accrual calculations
Warehouse overtime is common but does not count toward leave accrual. Including it inflates balances and creates downstream errors.
5. Incorrect shiftworker classification
Warehouse employees who work some weekends but not on a rotating basis across all days may not qualify as shiftworkers. The definition requires regular rotating shifts, not occasional weekend work.
Putting it into practice
Five checks cover most Storage Services Award leave compliance:
- Identify which employees qualify as shiftworkers for the fifth week of annual leave.
- Apply the “greater of” test for leave loading against penalty rates on every annual leave payment.
- Track cumulative casual employment across seasonal peaks for the conversion trigger.
- Enforce minimum engagement periods for all casual shifts.
- Exclude overtime from leave accrual calculations.
Tracking the “greater of” leave loading calculation across rotating warehouse rosters — where penalty rates change by day, time, and role — and managing casual conversion across seasonal peaks 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
- Storage Services 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 warehouse 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 Storage Services 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 warehouse 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 warehouse employees be offered permanent conversion?
After 12 months of regular casual employment — including cumulative employment across seasonal peaks — the employer must proactively offer permanent conversion. Refusal is permitted only on reasonable business grounds and must be documented.
What is the minimum engagement for casual warehouse employees?
Most casual warehouse employees have a minimum engagement of 3 or 4 hours per shift depending on their classification. The employer must pay the full minimum even if work finishes earlier.