The essential guide to leave in Australia.

Understanding Leave and Entitlements in Australia

When it comes to workplace rights and entitlements in Australia, the Fair Work Act 2009 and the National Employment Standards (NES) serve as the guiding frameworks. These laws ensure that employees are treated fairly and have access to leave entitlements for rest, health, and other personal matters. Below, we break down the main types of leave and entitlements available to employees in Australia.

Annual Leave

Annual leave is one of the key entitlements under the NES, providing employees with the opportunity to take time off work while continuing to receive their regular pay.

Who is entitled to annual leave?

Full-time and part-time employees (pro-rata) are entitled to annual leave, whereas casual employees do not accrue annual leave but are compensated with a loading on their hourly rate.

How much leave can employees take?

Normally employees accrue four weeks/20 days of paid annual leave per year of service, some employers may have additional leave days. For shift workers, this entitlement increases to five weeks per year.

Key points about annual leave:

• Accrual: Leave accrues progressively based on ordinary hours worked and carries over from year to year if unused.
• Taking leave: Employers can require employees to take annual leave during shutdown periods (e.g., Christmas closures) but must provide reasonable notice.
• Payment: Employees are paid their base rate for the hours they would have worked, plus any applicable annual leave loading if specified in their award or enterprise agreement.

For more details, visit the Fair Work Ombudsman’s annual leave page.

Buying Leave

Some employers in Australia offer employees the option to “buy” additional leave through salary sacrifice arrangements. This means employees can take extra time off beyond their standard entitlements by agreeing to reduce their salary proportionally.

How does buying leave work?

• Agreement: The arrangement must be agreed upon between the employer and employee and included in the employment contract or a separate agreement.
• Calculation: The cost of the extra leave is deducted from the employee’s salary over a period of time, spreading the financial impact.
• Usage: The purchased leave is typically treated as paid leave and can be used similarly to annual leave.

Key considerations:

• Buying leave is not mandated under the NES; it is offered at the discretion of the employer.
• Employees should check whether the arrangement affects their superannuation or other benefits.
• Employers may have specific policies outlining how much additional leave can be purchased and how it is applied.

For more details, check your organisation’s leave policies or speak to your HR representative.

Personal/Carer’s Leave

Personal leave, also referred to as sick leave, supports employees during illness or injury or when they need to care for a family member.

Who is entitled to personal leave?

Full-time and part-time employees accrue paid personal/carer’s leave, while casual employees have access to unpaid leave.

How much leave can employees take?

Employees accrue 10 days of paid personal/carer’s leave per year of service.

Key points about personal leave:

• Accrual: Leave is calculated based on ordinary hours worked and carries over if unused.
• Documentation: Employers can request evidence, such as a medical certificate or statutory declaration, for leave taken.
• Carer’s responsibilities: Employees can use this leave to care for immediate family or household members.
• Unpaid leave: When paid leave is exhausted, employees may take up to two days of unpaid carer’s leave per occasion.

For further reading, see the Fair Work Ombudsman’s personal leave page.

Compassionate Leave

Compassionate leave, also known as bereavement leave, allows employees to take time off to grieve the death or serious illness of a family or household member.

Entitlements:

• All employees, including casuals, are entitled to two days of compassionate leave per occasion.
• This leave can be taken as a single two-day period, two separate days, or in agreement with the employer.
• Employees may need to provide evidence, such as a death certificate or medical certificate.

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Personal/Carer’s Leave

Personal leave, also referred to as sick leave, supports employees during illness or injury or when they need to care for a family member.

Who is entitled to personal leave?

Full-time and part-time employees accrue paid personal/carer’s leave, while casual employees have access to unpaid leave.

How much leave can employees take?

Employees accrue 10 days of paid personal/carer’s leave per year of service.

Key points about personal leave:

• Accrual: Leave is calculated based on ordinary hours worked and carries over if unused.
• Documentation: Employers can request evidence, such as a medical certificate or statutory declaration, for leave taken.
• Carer’s responsibilities: Employees can use this leave to care for immediate family or household members.
• Unpaid leave: When paid leave is exhausted, employees may take up to two days of unpaid carer’s leave per occasion.

For further reading, see the Fair Work Ombudsman’s personal leave page.

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Compassionate Leave

Compassionate leave, also known as bereavement leave, allows employees to take time off to attend a funeral, grieve the death or serious illness of a family or household member.

Entitlements:

• All employees, including casuals, are entitled to two days of compassionate leave per occasion.
• This leave can be taken as a single two-day period, two separate days, or in agreement with the employer.
• Employees may need to provide evidence, such as a death certificate or medical certificate.

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Parental Leave

Parental leave entitlements allow employees to take time off for the birth or adoption of a child.

Who is eligible?

• Employees must have completed 12 months of continuous service to qualify.
• Both parents can access parental leave, with a combined entitlement of 12 months unpaid leave, which can be extended to 24 months by agreement.

Key points:

• Entitlements: This type of leave varies from employer to employer, some have excellent parental leave scheme that offer paid leave for an extended period or the option to spread the time over part time hours etc. Employers are open to providing parental leave entitlements that are in addition or are more beneficial to employees at their discretion.
• Government Paid Parental Leave Scheme: Eligible employees may also receive government-funded payments during their leave period.
• Flexibility: Parents can take leave concurrently for a maximum of eight weeks.

For further details, explore the Fair Work Ombudsman’s parental leave page.

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Domestic Violence Leave

From 1 February 2023, all employees, including casuals, are entitled to 10 days of paid family and domestic violence leave each year. This leave allows employees to deal with the impact of family or domestic violence, which may include attending court hearings, accessing support services, or making safety arrangements.

Key points about domestic violence leave:

• Entitlement: Employees are entitled to 10 days of leave in a 12-month period, which does not accrue progressively and renews in full at the start of each year.
• Confidentiality: Employers must take reasonable steps to ensure information about the leave is kept confidential.
• Evidence: Employers can request evidence, such as police reports or statutory declarations, to support the leave request.
• Payment: Leave is paid at the employee’s full rate of pay for the hours they would have worked.

For more information, visit the Fair Work Ombudsman’s domestic violence leave page.

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Community Service Leave

Employees can take unpaid community service leave for activities such as:

• Volunteering for emergency management services.
• Attending jury duty (with jury duty attracting payment for the first 10 days).

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Long Service Leave

Long service leave is a period of paid leave granted to employees after an extended period of service with the same employer. Entitlements vary by state and territory, but in most cases, employees become eligible after 10 years of continuous service, with pro-rata entitlements often available after 7 years. Typically, employees are entitled to around 8.67 to 13 weeks of paid leave after 10 years, depending on the state or territory.

How long service leave works:

• State-based differences: Long service leave is governed by state and territory laws, and the amount of leave, as well as how and when it can be taken, may vary. For example, in New South Wales, employees accrue 8.67 weeks of leave after 10 years, while in Victoria, the entitlement is slightly different.
• Taking leave: Some employers allow employees to take long service leave in small increments (e.g., individual days or weeks), while others require the leave to be taken in a continuous block.
• Pro-rata access: In many states, employees may access a pro-rata entitlement if they leave employment after 7 years due to resignation, redundancy, or other eligible reasons.

For general guidelines, see the Fair Work Ombudsman’s long service leave page.

Public Holidays

Employees are entitled to be absent from work on a public holiday. Full-time and part-time employees receive their base pay for these days if they normally work on the day the holiday falls. Casual employees are not paid unless they work, in which case they may be entitled to penalty rates.

For a list of public holidays in your state or territory, refer to Australia’s public holidays.

Unpaid Leave

Employers and employees can agree to unpaid leave arrangements. While unpaid leave is not mandated by the NES, it can provide flexibility for situations like extended travel, study, or personal emergencies.

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Public Holidays

Employees are entitled to be absent from work on a public holiday. Full-time and part-time employees receive their base pay for these days if they normally work on the day the holiday falls. Casual employees are not paid unless they work, in which case they may be entitled to penalty rates.

For a list of public holidays in your state or territory, refer to Australia’s public holidays.

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Unpaid Leave

Employers and employees can agree to unpaid leave arrangements. While unpaid leave is not mandated by the NES, it can provide flexibility for situations like extended travel, study, or personal emergencies.

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Superannuation and Leave

While employees are on paid leave—such as annual leave, personal leave, or purchased/bought leave—superannuation contributions generally continue to accrue. Employers are required to pay superannuation on ordinary time earnings (OTE), which includes most forms of paid leave. However, superannuation does not accrue on unpaid leave unless it is specifically agreed upon. Employees should review their superannuation statements to ensure contributions are made during leave periods and discuss any discrepancies with their employer.

Additionally, many employees are unaware that their superannuation can also be affected by salary sacrifice arrangements, such as purchased leave or other benefits. It’s essential to confirm with your employer whether super contributions are calculated before or after these deductions to maximise retirement savings.

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More information can be found with the Fair Work Ombudsman or visit their website at www.fairwork.gov.au.