A rostered day off (RDO) is one of the most misunderstood entitlements in Australian workplaces. It is a paid day away from work that you earn by working slightly more than the hours you are paid for on your ordinary days, so your week still averages the standard 38 hours. The catch is that an RDO is not written into the National Employment Standards. It comes from your modern award or enterprise agreement, so the rules (how a day builds up, how much notice you need, what happens on a public holiday) depend on the document that covers your job. This guide explains how RDOs accrue, how the Building and Construction and Manufacturing awards handle them, how they are paid, and how an RDO differs from time off in lieu and annual leave.
Key takeaways
- An RDO is a paid day off earned by banking a few extra minutes each day.
- RDOs come from your award or enterprise agreement, not the NES.
- They are paid at ordinary rates and are separate from annual leave.
- Accrued RDO credit is paid out when you leave.
What a rostered day off actually is
The Fair Work Ombudsman defines an RDO plainly: a day in a roster period that an employee does not have to work. It can be paid or unpaid, depending on how it is set out in the award or agreement. When an RDO is paid, it is because you have already worked the extra hours that add up to that day over a set cycle. A paid RDO is not free time on top of your pay: it is time you earned in advance and are now taking.
RDOs are not part of the NES
This is the point that trips people up most, so it is worth being clear. The Fair Work Act 2009 and its 10 National Employment Standards set the floor for things like annual leave, personal leave and public holidays. The NES also sets a maximum ordinary week of 38 hours for a full-time employee. What the NES does not do is create a right to a rostered day off. RDOs are a rostering arrangement layered on top of the 38-hour week, and they are created by:
- a modern award that applies to your industry or occupation, or
- an enterprise agreement or a registered agreement at your workplace.
If no award or agreement provides for RDOs, you do not automatically get them. That is why two people both on a 38-hour week can have very different rosters: one banks time for RDOs and one does not. Unfamiliar terms are explained in our glossary.
How you accrue a rostered day off
The engine behind an RDO is averaging. Instead of working exactly 38 hours every week, you work a little longer on your ordinary days and bank the difference. Once the banked time adds up to one full ordinary day, you take that day off and the cycle restarts. A common pattern is a 20-day, four-week cycle worked as 19 days plus one RDO. The table below shows how the maths lands using the Building and Construction award figures, where each day is 8 hours but only 7.6 are paid and 0.4 of an hour is banked.
| Across a 20-day, 4-week cycle | Hours worked | Hours paid | Banked toward RDO |
|---|---|---|---|
| Each ordinary day (19 days) | 8.0 | 7.6 | +0.4 |
| The RDO (1 day) | 0 | 7.6 (from the bank) | -7.6 |
| Cycle total | 152 | 152 | 0 |
How your award sets the RDO rules
Because RDOs live in the award or agreement, that document controls the detail: how a day accrues, whether you follow a fixed roster or bank days flexibly, how much notice is needed to take or move a day, whether an employer can require you to work on a rostered RDO, whether days can be substituted, what happens when an RDO falls on a public holiday, and whether RDOs can be cashed out. Two of the best-known RDO awards show how different the mechanics can be.
The contrast is instructive. Construction fixes a precise formula (0.4 of an hour banked each day over a 20-day cycle), while Manufacturing sets a 38-hour average and leaves the cycle length and RDO arrangements to be agreed. Always read the hours-of-work and RDO clauses of your own award or agreement rather than assuming another industry's rules apply.
How RDOs are paid
A paid RDO is paid at your ordinary rate for the ordinary hours it represents, typically 7.6 hours for a standard full-time day. It is not overtime and attracts no penalty rates, because the day is simply the drawdown of hours you already worked at ordinary time. It is also separate from your annual leave: taking an RDO does not reduce your annual leave balance, and accruing an RDO does not build annual leave.
Public holidays, substitution and cashing out
What happens when an RDO clashes with a public holiday depends entirely on your award or agreement. Some instruments substitute the RDO for another day so you are not disadvantaged by losing a paid day off to a day you would not have worked anyway; others treat the two separately. Many awards also let RDOs be substituted (moved by agreement), banked or accumulated so you can take several together, or rescheduledat short notice for operational reasons, always within the award's rules. Cashing out, where an accrued RDO is paid out instead of taken, is only allowed if the award or agreement expressly provides for it, so check the clause first.
What happens to your RDOs when you leave
Because a paid RDO represents ordinary hours you have already worked, any RDO time you have accrued but not taken is generally paid out when your employment ends, as part of your final pay. The reverse can also apply: if you have taken an RDO in advance (before fully banking the hours for it), the value of that time may be deducted from your final pay where the award, agreement or a written arrangement allows. The exact treatment is set by your award or agreement, so if you are resigning with an unusual RDO balance, confirm how it will be squared off before your last day.
RDO vs time off in lieu vs annual leave
These three are easy to blur together because each gives you a paid day off, but they are earned and governed differently. The table below sets them side by side, and our guide to time off in lieu covers that alternative in more depth.
| Feature | Rostered day off (RDO) | Time off in lieu (TOIL) | Annual leave |
|---|---|---|---|
| How it is earned | Working slightly more than paid daily hours so the week averages 38 | Working overtime and taking equivalent time off instead of overtime pay | Accrues progressively for each year of service under the NES |
| Source | Award or agreement | Award or agreement | National Employment Standards |
| Pay rate of the time | Ordinary hours already worked | Usually hour-for-hour off for overtime worked | Ordinary rate (plus leave loading where it applies) |
| Paid out when you leave? | Accrued RDO time usually paid out | Untaken TOIL usually paid out (often at overtime rates) | Untaken balance always paid out |
Frequently asked questions
Is a rostered day off a legal right for everyone?
No. RDOs are not part of the National Employment Standards. You only have a right to RDOs if your modern award or enterprise agreement provides for them. Many awards do not include RDOs at all.
Do I get paid for an RDO?
If your award or agreement makes the RDO paid, then yes, at your ordinary rate for the ordinary hours it covers. The pay comes from time you banked by working slightly longer on your other days, so it is not extra money on top of a normal week.
Can my employer make me work on my RDO?
Some awards let an employer require work on a rostered RDO by agreement, and may provide a substitute day or a penalty payment. Check the hours-of-work clause in your award or agreement, because the answer varies.
What if my RDO falls on a public holiday?
It depends on your award or agreement. Some provide that the RDO is substituted for another day; others do not. See our public holidays guide and confirm the clause that applies to you.
Is an RDO the same as annual leave?
No. Taking an RDO does not touch your annual leave balance. Annual leave accrues under the NES for each year of service, while an RDO is your ordinary 38-hour week rearranged. More common questions are answered on our FAQ page.
- An RDO is a paid day off you earn by working slightly more than your paid daily hours so the week still averages 38; it is not extra leave.
- RDOs are not in the NES. They come from your modern award or enterprise agreement, which sets accrual, notice, substitution, public-holiday treatment and cashing out.
- RDOs are paid at ordinary rates for hours already worked, carry no overtime, and are separate from annual leave.
- Accrued RDO time is generally paid out when you leave, while RDOs taken in advance may be deducted from final pay if the award or agreement allows.
Author & reviewer
Sarah has spent over a decade advising Australian SMBs on Fair Work, NES compliance, and payroll. Based in Sydney, she has worked across hospitality, retail and professional services.