Rostered Day Off (RDO): Definition & How It Works

A rostered day off (RDO) is a scheduled day off from work that an employee earns by working additional hours beyond the standard workweek. RDOs are an entitlement found in many Australian modern awards and enterprise agreements, allowing employees to build up paid time off through a structured accumulation system.

Unlike annual leave or personal leave, RDOs are not a national entitlement under the National Employment Standards (NES). They exist only where a specific award, agreement, or contract provides for them.

Key Takeaways

• A rostered day off is a paid day off earned by working extra hours, typically through an averaging or time-in-lieu arrangement.
• RDOs are not a NES entitlement — they depend on the applicable modern award, enterprise agreement, or employment contract.
• Many Australian awards, including the Building and Construction General On-site Award and the Manufacturing Award, include RDO provisions.
• RDOs are accumulated gradually (often one day per 4-5 weeks) and taken on a pre-roster schedule.
• Employers must track RDO accruals separately from annual leave and long service leave.

What Is a Rostered Day Off?

A rostered day off gives employees a predictable, paid day away from work without drawing down their annual leave balance. The concept is straightforward: you work slightly longer hours during the days you do work, and in return, you receive a regular day off.

For example, under a common RDO arrangement, an employee works an average of 38 hours per week but fits those hours into four longer days and one day off, or works nine-day fortnights with every second Friday off.

RDOs are distinct from flexible work arrangements or time off in lieu, although they share the principle of trading extra hours for time off. The key difference is that RDOs are formally rostered — the employer sets the schedule well in advance.

How RDOs Accumulate

RDO accumulation varies by award and agreement. The most common methods are:

Method	How It Works	Example
Time-based accrual	A fixed number of hours are credited per pay period	1 RDO earned per 4-week cycle
Proportional accrual	Hours accumulate based on ordinary hours worked	1 RDO per 76 ordinary hours
Roster cycle	The roster itself includes scheduled days off	9-day fortnight, every second Friday off

Under a 9-day fortnight arrangement, the employee works 9 days of approximately 8.44 hours to cover 2 weeks of the standard 38-hour week. The 10th day is the rostered day off.

Accumulation Periods

A typical RDO accrual period looks like this:

Weeks Worked	Hours Worked	RDOs Earned
4 weeks	152 ordinary hours	0.5 days
8 weeks	304 ordinary hours	1 day
12 weeks	456 ordinary hours	1.5 days
26 weeks	988 ordinary hours	3 days

These figures vary significantly depending on the specific award. The Building and Construction General On-site Award 2020 requires employers to credit one RDO for every 42 ordinary hours worked in some classifications.

Which Awards Include RDOs?

RDOs appear in a range of Australian modern awards, particularly in industries with structured shift patterns:

• Building and Construction General On-site Award 2020 — One of the most common RDO awards, with detailed accrual and taking rules
• Manufacturing and Associated Industries and Occupations Award 2020 — Includes RDO provisions for many manufacturing classifications
• Local Government Industry Award 2020 — Many councils operate on RDO cycles
• Clerks—Private Sector Award 2020 — Some classifications include RDO provisions

If your employees are not covered by an award or enterprise agreement, RDO entitlements are determined by the employment contract. There is no default NES right to an RDO.

How to Take a Rostered Day Off

RDOs follow a pre-determined schedule. The employer must publish the roster well in advance — typically 4 to 8 weeks ahead. Employees request their RDOs according to the roster, not on an ad hoc basis.

Rules for Taking RDOs

• Notice periods: Most awards require the employer to provide at least one week’s notice if a scheduled RDO needs to be rescheduled.
• Cashing out: Some awards allow RDOs to be cashed out on termination, while others do not. The Building and Construction Award, for example, allows cashing out of accrued but untaken RDOs at the end of employment.
• Payment on termination: If an employee finishes employment with unused RDOs, the employer generally pays out the accrued balance.
• Public holidays: If a public holiday falls on a scheduled RDO, the employee does not receive an additional day in lieu — the RDO already provides time off.

Example: A Construction Worker’s RDO Cycle

Marcus works on a construction site under the Building and Construction General On-site Award. He works a standard 38-hour week spread over five days, earning one RDO per 42 ordinary hours.

Month	Hours Worked	RDOs Accrued	RDOs Taken	Balance
January	168	4	3	1
February	152	3.6	3	1.6
March	168	4	3	2.6
April	152	3.6	4	2.2

Marcus uses his RDOs on scheduled Fridays throughout the year, giving him regular long weekends without touching his annual leave.

RDOs vs Other Leave Types

Feature	Rostered Day Off	Annual Leave	Personal/Carer’s Leave
Accrual basis	Working extra hours	10 days per year (NES)	10 days per year (NES)
Entitlement source	Award, agreement, or contract	NES	NES
Scheduling	Pre-roster	Employee requests	As needed
Cashing out	Varies by award	Yes, on termination	No
Leave loading	Generally no	Yes (if award applies)	No
Carryover	Limited by award	2 years maximum (NES)	N/A

Managing RDOs with Leave Management Software

Tracking RDO accruals alongside annual leave and personal leave adds complexity to payroll. A dedicated leave management system simplifies this by:

• Tracking RDO accruals separately from other leave balances
• Applying the correct accumulation rules per award or agreement
• Displaying upcoming rostered days off in a shared calendar
• Alerting managers when RDO balances are approaching caps
• Generating reports for Fair Work compliance and auditing

For businesses with employees across multiple awards — each with different RDO provisions — manual tracking becomes a significant compliance risk.

Frequently Asked Questions

Is a rostered day off the same as annual leave?

No. Annual leave accrues at 10 days per year under the NES and is taken by employee request. A rostered day off accrues through working extra hours and follows a pre-set roster. RDOs do not reduce an employee’s annual leave balance.

Can an employer cancel a scheduled rostered day off?

Under most awards, the employer must provide at least one week’s notice to reschedule a rostered day off. If the employer fails to give sufficient notice, the employee is generally entitled to take the day as scheduled. Check your specific award for the exact rules.

Do RDOs accumulate on public holidays?

RDOs typically accrue only on ordinary hours worked. If an employee does not work on a public holiday, those hours do not count toward RDO accrual. However, some agreements may differ — always check the applicable industrial instrument.

Can I cash out my RDOs?

It depends on the award or agreement. Some awards allow cashing out of accrued RDOs on termination of employment. Others require the RDO to be taken before employment ends. The Building and Construction General On-site Award, for example, permits cashing out at the end of employment.

Do part-time employees accrue RDOs?

Yes, provided the award or agreement includes RDO provisions for part-time employees. RDO accrual is generally proportional to ordinary hours worked. A part-time employee working 20 hours per week accrues RDOs at roughly half the rate of a full-time employee working 38 hours.