Effective management of employee leave policies is essential for businesses conducting business in or entering the Australian market. Australia has strong labor legislation and a well-organized system for various types of leaves, all regulated by the National Employment Standards (NES). Employers, particularly those with global teams, should know the Australian types of leave in general, such as annual, parental, sick, and other types of leave. This manual describes the major employee leave provisions in Australia, keeping HR and compliance departments in step with domestic regulations.
Annual Leave
In Australia, part-time and full-time workers get a minimum of four weeks of paid annual leave annually, with shift workers being entitled to five weeks. Casual staff are not eligible for annual leave. The entitlement progressively accrues in accordance with the employee’s normal work hours, and it starts from the first day on the job, including during probation.
Annual leave still accumulates when a person is on paid leave, including paid sick leave and community service leave. It does not accumulate while off on unpaid leave or during leave paid for by the government, like the Paid Parental Leave Scheme.
The employer and employee need to agree on when leave is taken. Employers may, in some circumstances, require employees to take leave, for example, where there are excessive leave balances. Annual leave in some agreements can also be cashed out, as long as employees have a minimum of four weeks and a written agreement is entered into.
Public holidays that occur during annual leave are separately paid and are not counted as part of the leave.
Sick and Carer’s Leave
Referred to as personal/carer’s leave, staff (but not casuals) accrue 10 days annually of paid sick and carer’s leave. The leave builds up incrementally and is part-time pro rata. The leave is for personal sickness or to look after a sick or injured family member.
Medical certificates can be requested by employers for validation. Unused sick leave is not paid out on cessation.
Casual workers do not have access to paid sick leave, although they are able to access unpaid carer’s leave.
Parental Leave
Full-time and part-time employees with a service period of at least 12 months qualify for parental leave, which is paid for by the Australian government under Parental Leave Pay (PLP). This provides up to 22 weeks’ pay at the National Minimum Wage to the principal carer of a child born or adopted.
Parental leave may be taken in:
- Continuous parental leave (a total of 24 months from the date of birth/adoption)
- Flexible parental leave (days taken over a period of 24 months, rising gradually from 100 days in 2024 to 130 days in 2026)
Workers can ask for an extension of up to 12 extra months, and employers have to reply in writing, offering good business reasons for refusal.
Family-Related Leave
The NES contains a number of Family and Medical Leave entitlements to assist employees in times of family emergencies or their own health concerns. These are:
- Paid personal/carer’s leave (10 days/year)
- Unpaid carer’s leave (2 days per incident)
- Compassionate leave (2 days per incident)
- Family and domestic violence leave (10 days of paid leave)
Casual employees are not entitled to all of these but can access unpaid carer’s leave, unpaid compassionate leave, and paid family and domestic violence leave.
Notice is required in a timely manner for all types of leave, and reasonable evidence in appropriate cases must be given to the employer.
Community Service and Jury Duty Leave
Employees may take leave for community service or jury duty. Jury duty is paid for the first 10 days, but community service leave is usually unpaid. There is no limit on the number of days an employee can take for these purposes.
Military Service Leave
Reservist workers have the right to take defense duty and training leave. While there is no requirement for employers to pay during this time, employers pay voluntarily or make top-up payments in many cases. Workers may not be required to use other types of leave for defense responsibilities.
Employers can seek financial help from the state to pay for expenses while the employee is away.
Compassionate and Bereavement Leave
Staff can avail compassionate leave in the case of a death or serious illness of an immediate family member. Full-time and part-time staff are remunerated for up to two days of leave, whereas casual staff receive it without pay. This leave is not cumulative and is distinct from other types of leave.
Leave in general can be taken as a single period, over a series of different days, or otherwise, with employer consent. Supporting evidence, like a death notice or funeral notice, might be necessary.
Conclusion
Compliance with and management of Family and Medical Leave in Australia may be intricate, particularly for international organizations managing compliance across multiple regions. That’s where a centralized compliance platform is crucial.
Global People Strategist (GPS) assists HR, finance, and legal departments in ensuring global compliance with labor laws through a single software platform. GPS enables you to have access to the latest and correct leave legislation for Australia and more countries in a single location, making compliance easier and your workforce management more effective.
