Leave management in Australian construction is unlike any other industry — it revolves around Rostered Days Off (RDOs), portable long service leave schemes, wet weather stand-downs, and the Building and Construction Industry General On-site Award 2020, which provides entitlements that differ significantly from standard office-based employment.
Construction workers are often paid above-award rates through enterprise agreements or contracts, but the award sets the minimum leave floor. The complexity lies in the interaction between RDOs (which function as a form of deferred leave), portable long service leave that follows workers between employers, and wet weather provisions that can trigger involuntary stand-downs without pay.
Key takeaways
- The Building and Construction Industry General On-site Award 2020 provides 4 weeks annual leave, with 5 weeks for shift workers rotating across all seven days.
- RDOs are banked hours that accumulate over a roster cycle and are taken as paid days off — they are not additional leave, but they interact with annual leave calculations.
- Portable long service leave schemes exist in Victoria, Queensland, South Australia, and other states — workers accrue entitlements that transfer between employers.
- Wet weather provisions allow stand-down without pay when work cannot safely proceed, but the employee’s annual leave and RDO entitlements are unaffected.
- Construction’s high casualisation rate means many workers lack paid leave entirely, creating compliance exposure around casual conversion.
The Construction Award leave framework
The Building and Construction Industry General On-site Award 2020 covers most on-site construction workers not covered by an enterprise agreement.
| Leave type | Full-time | Part-time | Casual |
|---|---|---|---|
| Annual leave | 4 weeks (5 for shift workers) | Pro-rata by ordinary hours | None — loading compensates |
| Personal/carer’s leave | 10 days/year | 10 days pro-rata | 2 days unpaid per occasion |
| Compassionate leave | 2 days per occasion | 2 days per occasion | 2 days unpaid per occasion |
| RDOs | Per roster cycle — typically 1 day per 20 worked | Not applicable | Not applicable |
| Long service leave | Per portable scheme or state legislation | Pro-rata | Not applicable |
The award provides a minimum of 4 weeks annual leave, but many construction enterprise agreements provide 5 weeks for all full-time workers regardless of shift pattern. Always check the applicable enterprise agreement — it may be more generous than the award.
RDOs: how they work
Rostered Days Off are a defining feature of construction leave management. Workers bank hours over a roster cycle — typically 4 weeks — and take one day off at the end of the cycle.
RDO accrual mechanics
| Roster cycle | Hours worked per day | RDO hours banked per day | RDO hours per cycle |
|---|---|---|---|
| 4-week cycle, 9-day fortnight | 8 hours | 8 hours banked | 8 hours (1 RDO) |
| 4-week cycle, 8-day fortnight | 8 hours | 8 hours banked | 16 hours (2 RDOs) |
| Monthly roster | 8 hours | 4 hours banked | 32 hours (4 RDOs) |
RDOs are paid at the employee’s ordinary rate. They do not attract leave loading and are not counted as annual leave. When an employee takes annual leave, RDOs in the roster period are adjusted — the employee does not receive both an RDO and annual leave for the same day.
RDO interaction with annual leave
When an employee is on annual leave during an RDO day:
- The RDO is not counted as a day of annual leave — the employee receives the RDO separately
- The annual leave period is extended by the RDO day
- The employee must be paid for both the RDO and the annual leave days
This interaction is frequently miscalculated, resulting in either overpayment (employee receives both) or underpayment (RDO deducted from annual leave balance).
Portable long service leave
Unlike standard long service leave — which is tied to a single employer — portable long service leave follows the worker across multiple employers within the construction industry. The key schemes are:
| State | Scheme | Portability |
|---|---|---|
| Victoria | Long Service Benefits Portability Act 2018 | Between construction employers in VIC |
| Queensland | Building and Construction Industry (Portable Long Service Leave) Act 1991 | Between construction employers in QLD |
| South Australia | Building and Construction Industry Portable Long Service Leave Act 1989 | Between construction employers in SA |
| New South Wales | Long Service Leave Act 1955 | Standard employer-tied scheme |
Under portable schemes, workers accrue long service leave credits with every employer. When a worker changes jobs, their accrued entitlements transfer — the new employer inherits the liability. This creates a tracking obligation that most construction employers underestimate.
Accrual rates (typical)
| Years of service | Accrued entitlement |
|---|---|
| 7 years | Approximately 2 months |
| 10 years | Approximately 3 months |
| 15 years | Approximately 4 months |
| 20 years | Approximately 5 months |
For a construction worker who has been in the industry for 15 years across three employers, the total portable long service leave liability is approximately 4 months of ordinary pay — shared proportionally between all participating employers.
Wet weather and stand-downs
Construction work is weather-dependent. The Building and Construction Industry Award permits stand-down without pay when work cannot safely proceed due to rain, extreme heat, or other weather conditions.
Key rules for wet weather stand-downs:
| Scenario | Payable? | Annual leave affected? |
|---|---|---|
| Rained off before starting work | No pay | No — not counted as leave |
| Rained off mid-shift | Paid for hours worked | No — not counted as leave |
| Extreme heat stand-down | No pay | No — not counted as leave |
| Employer-directed stand-down (not weather) | Depends on cause | May be annual leave |
Wet weather stand-downs are not annual leave and do not reduce the employee’s leave balance. However, they do affect the employee’s take-home pay and can create cash flow issues — particularly for workers on tight budgets.
Construction’s casual conversion challenge
The construction industry has one of the highest casualisation rates in Australia. Many labourers and tradespeople work as casuals through labour hire firms or directly for builders. This creates two compliance risks:
- Casual conversion obligation — after 12 months of regular and systematic employment, the employer must offer permanent status
- Sham contracting — if a worker is engaged as an independent contractor but is effectively an employee, the employer faces back-payment of leave entitlements, superannuation, and other employment benefits
The Fair Work Act’s sham contracting provisions are actively enforced in construction. A subcontractor who works exclusively for one builder, on the builder’s site, using the builder’s tools, and following the builder’s directions may be reclassified as an employee — triggering leave entitlements dating back to the start of engagement.
Common compliance mistakes in construction
- Treating RDOs as additional leave — RDOs are banked ordinary hours, not separate leave entitlements
- Not accounting for portable long service leave liabilities — these transfer between employers and must be tracked
- Deducting annual leave for wet weather stand-downs — weather-related stand-downs are not leave
- Ignoring casual conversion obligations — the 12-month trigger applies in construction despite high turnover
- Misclassifying employees as contractors — sham contracting triggers significant back-payment liability
For more, see our guides to long service leave by state, Fair Work compliance, and annual leave entitlements.
Frequently asked questions
How do RDOs interact with annual leave in construction?
When an employee takes annual leave during a period that includes an RDO, the RDO is not counted as a day of annual leave. The employee receives both the RDO and the annual leave, extending the total time away from work.
What is portable long service leave?
Portable long service leave allows construction workers to accrue long service leave entitlements that transfer between employers within the industry. Schemes exist in Victoria, Queensland, South Australia, and other states, administered by industry-specific authorities.
Can a construction employer stand workers down for wet weather without pay?
Yes. The Building and Construction Industry Award permits stand-down without pay when work cannot safely proceed due to weather. The stand-down is not counted as annual leave and does not reduce the employee’s leave balance.
Do casual construction workers get any leave?
Casual construction workers receive a casual loading instead of paid leave entitlements. They are entitled to 2 days unpaid carer’s leave per occasion and 10 days paid family and domestic violence leave per year. After 12 months of regular employment, they must be offered casual conversion.
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