Leave Policy in Australia

Types of Leave

The Fair Work Act 2009 governs statutory leave entitlements for all employees under Australia’s national workplace relations system. Below is a detailed breakdown:

• Annual Leave: Full-time and part-time employees accrue 4 weeks of paid annual leave per year. Shift workers are entitled to 5 weeks. Leave accrues progressively and is based on ordinary hours worked.
• Personal/Carer’s Leave (Sick Leave): Employees accrue 10 days of paid personal/carer’s leave per year. This leave covers illness or caring for an immediate family or household member.
• Maternity Leave (Parental Leave): Eligible employees can take up to 12 months of unpaid parental leave, with a possible extension to 24 months. Government-funded paid parental leave may also apply for up to 18 weeks at the national minimum wage.
• Compassionate Leave: 2 days of paid compassionate leave per permissible occasion for the death or serious illness of an immediate family member.
• Community Service Leave: Includes jury duty and voluntary emergency service. Jury service is paid for up to 10 days.

Unused Leave

Unused annual and personal leave can be carried over indefinitely. Upon termination, unused paid leave must be paid out in full. Parental and compassionate leave cannot be carried forward or encashed. Employers must record leave balances and report them on payslips.

Consequences of Mismanagement

Non-compliance may result in fines of up to AUD 93,900 for companies per breach under the Fair Work Act. Failing to provide correct leave, underpayment, or record-keeping errors may trigger audits and employee claims.

Public Holidays

Australia has national and state-based public holidays. Key holidays include Australia Day, ANZAC Day, and Christmas. If employees work on a public holiday, additional pay or time off must be provided as outlined in modern awards or agreements.

How AYP Manages Leave Compliance

AYP ensures that your business meets Fair Work standards by managing leave entitlements, tracking public holiday variances by state, and integrating leave management into compliant payroll services. We also support leave payout accuracy on termination.

Contact Us

Need expert HR and compliance support in Australia? Contact AYP to manage employment legally and efficiently through our EOR platform.