Page 238 - Registrar Orientation Manual 2016

Section C - understanding leave calculations
Most contracts have now included non transferable days into annual leave entitlements.
Annual Leave is calculated based on the number of ordinary hours that are worked and leave that is paid.
The calculation is based on the number of full time hours leave you would be entitled to in a year. If you are entitled to 20 days leave the calculation would be based on 160 hours per year. If you are entitled to 25 days leave the calculation would be based on 200 hours per year.
For a person who has worked 80 hours in a fortnight and is entitled to 20 days a year, the calculation looks like this –
80 divided by 2086 (*annual divisor) multiplied by 160 =
6.136
For a person who has worked 80 hours in a fortnight and is entitled to 25 days leave a year, the calculation looks like this –
80 divided by 2086 (*annual divisor) multiplied by 200 =
7.670
(*Annual divisor is stated in the collective contract and is based on the number of hours a full time employee would work in a year).
Annual leave rolling average
Annual Leave rolling average is the average rate at which annual leave should be paid. This rate is calculated based on your gross pay earned over your previous 52 weeks and divided by the number of basic hours paid during this same period. This calculation is made as at the last pay period prior to the leave being taken. Employees with service of less than 52 weeks the divisor reduces accordingly.
The gross pay includes payment for all ordinary time plus all penals, overtime and arrears that you may have received during your rolling average period.
The concept for annual leave rolling average is, over a year your average fortnightly pay may be greater than what you would receive for just your basic hours multiplied by your hourly rate because you receive penal payments for night duties and working weekends and public holidays. This average rate is the rate annual leave is paid at so as not to disadvantage you when you take annual leave.
Just to note, if your average rate is lower than your current hourly rate then the higher rate is used. (i.e. your current hourly rate is used).