What does "annual leave is accrued" mean?

"Annual leave is accrued" means that an employee earns or accumulates leave entitlements over a period of time, usually based on the length of their employment and the terms of their employment contract.

For example, if an employment contract provides for 15 days of annual leave per year, an employee may earn 1.25 days of annual leave for every month that they work. This means that after one year of employment, the employee would have accrued 15 days of annual leave entitlements.

Accrued leave entitlements may also include pro-rata calculations for partial years of employment or additional leave days earned through overtime or other arrangements.

Accrued leave is a form of deferred compensation, meaning that the employee earns their leave entitlements gradually over time and can use them at a later date.

It's important to note that accrued leave entitlements may be subject to certain restrictions or conditions, such as maximum carryover limits or use-it-or-lose-it policies. Employees should check their employment contract or speak with their employer to ensure that they understand their full leave entitlements and any additional requirements or restrictions that may apply.