Running a business in Australia comes with many different responsibilities. One of the most important is understanding your employees’ leave entitlements—an area that can sometimes get overlooked.
The Fair Work (FW) Act and the National Employment Standards (NES) set out the minimum types of leave every worker is entitled to, and as a business owner or employer, it’s important that you meet those obligations.
In this blog, we’ll walk you through the key types of leave in Australia, what they mean for your business, and how you can stay compliant while supporting your people.
The National Employment Standards (NES): Leave Entitlements
The NES are the minimum entitlements for employees in Australia. They’re the basic conditions of employment, and apply to all employees in the national workplace relations system. Even if an employee is covered by an award, enterprise agreement or employment contract, these conditions cannot be any less than the minimum in the NES (Fair Work Commission).
Of the 12 minimum entitlements in the NES, 6 are directly related to leave.
Annual Leave & Public Holiday Entitlements for Employers
These leave types are the ones most people are familiar with.
- Annual leave: Full-time and part-time employees get 4 weeks of annual leave, based on their ordinary hours of work. Shift workers may get up to 5 weeks of annual leave per year. Managing accruals correctly is essential to avoid payroll errors and disputes. Fair Work helps you calculate annual leave with their calculator here.
- Public holidays: Employees have the right to be absent from work on recognised public holidays. These days may vary per state or territory. While you can request an employee to work on a public holiday, it must be reasonable, and penalty rates may apply depending on your award or agreement.
Personal, Carer’s & Compassionate Leave: Employer Obligations
The NES also has leave provisions for any unexpected life events that affect employees’ ability to work. Employers must accommodate these through:
- Personal/Carer’s leave: Also called sick leave, this leave type covers illness, injury, or the need to care for immediate family or household members.
- Compassionate and bereavement leave: Gives employees time off when an immediate family or household member dies or faces a life-threatening illness or injury. All employees, including casuals, are entitled to this leave type.
- Family and domestic violence leave: All employees, whether full-time, part-time, or casual, are entitled to 10 days of paid family and domestic violence leave each year. Because of the circumstances that entail taking this leave, employers must ensure confidentiality and sensitivity when managing requests for this leave type.
Download our Family and Domestic Violence fact sheet here.
Parental, long service & community service leave explained
Some leave types are related to milestones in life or in the workplace:
- Parental leave: Applies when a child is born or adopted. Different rules and entitlements apply depending on what stage of parental leave the employee is in.
- Long service leave: A leave type that may be accessed after a certain period of working with the same business. The exact rules vary between states and territories.
Read all about long service leave here. - Community service leave: Covers activities such as voluntary emergency management activities or jury duty.
Beyond the NES: Discretionary Leave
While the NES set the minimum standard when it comes to leave, many businesses have other leave options for team members.
Discretionary leave like study leave or even birthday leave aren’t required by the law, but are welcome additions to any benefits package.
Beyond Compliance: What Employers Should Consider
Providing the correct leave and calculating entitlements correctly for your team members isn’t just about avoiding fines from Fair Work. It’s also about trust and maintaining a healthy relationship with your people. When your team sees that you respect their entitlements, it builds loyalty and contributes to a healthy workplace culture.
How Employers Can Manage Leave Entitlements Effectively
Here are our best practice tips for employers to manage leave entitlements:
- Have a clear, accessible leave policy (we recommend putting leave policies in your Employee Handbook!)
- Have an HR system in place to accurately track entitlements
- Regularly check Fair Work updates for any legislative changes
By getting leave management right, you’re protecting your business from legal risk and showing your employees that you value their well-being.
Need assistance with leave management in your business? Or maybe you need help with ensuring your leave policies are compliant? Our team of experienced HR partners can help. Reach out and book a call with us today!
