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Leave in Australia
Maternity, paternity, and parental leave in Australia
Adoption leave in Australia
Other leave in Australia
Public holidays in Australia
Protect your employees and your business
Paid time off in Australia
Every country has its own rules and requirements for the paid leave that employers have to grant their employees. In Australia, paid time off includes annual leave (holidays), sick leave, parental leave, and public holidays. By the end of this guide, you’ll understand everything you need to know to properly manage paid time off in Australia.
Leave in Australia
Statutory entitlements for paid time off in Australia are set out in the National Employment Standards (NES). Employees covered by a modern award, or other registered agreement may also have different entitlements, which may be more generous.
Statutory leave entitlements in Australia
The NES state that all employees in Australia are entitled to four weeks (20 days) of paid annual leave. Awards, enterprise agreements and other registered agreements can provide for more annual leave than the NES, but they can’t offer less. Equally, individual employees can create their own annual leave policy that grants employees more than four weeks’ annual leave, but they can’t give them any less than this.
Annual leave for full-time and part-time employees is based on their ordinary hours of work. For example, a part-time employee who works 20 hours a week will accumulate 80 hours of annual leave during the course of a year (the equivalent of four weeks of work). There are different rules for shift workers, who may get up to five weeks of annual leave per pear. This depends on the award or agreement they are covered by.
Sick leave policies in Australia
Full-time and part-time employees in Australia can take up to 10 days paid sick or carer’s leave per year, based on their ordinary hours of work. This allows them to take time off work to deal with:
- Illnesses or injuries
- Caring responsibilities
- Family emergencies
Casual employees don’t have the right to paid sick or carer’s leave, but they can access two days’ unpaid carer’s leave whenever they need it.
Personal leave encashment policies in Australia
In certain circumstances, employees can ‘cash out’ annual leave they have not taken at the end of the year, which means they get paid for the leave instead of taking it. Whether or not this is possible depends on whether the award or registered agreement covering the employee allows it. If it does, employees can usually only cash out their unused leave if:
- They have at least four weeks annual leave left over
- There is a written agreement between the employer and the employee
If an employee is not covered by an award, they can still come to an agreement with their employer that allows them to cash out unused annual leave. The employer has to agree to this in writing in a personal leave encashment policy.
Paid time off for casual workers in Australia
Casual employees typically don’t have the right to any paid days off. Because of this, employers who hire casual workers have to pay them at least an additional 25% on top of their normal wages. This is called a ‘casual loading’..’ Casual employees do have the right to two days’ unpaid sick or carer’s leave and two day’s unpaid bereavement leave whenever they need it.
Maternity, paternity, and parental leave in Australia
Maternity, paternity, and parental leave are leaves that are granted to employees in Australia when they or their partner give birth, or when they adopt a child. The requirements for granting parental leave to employees are set out in the NES.
Unpaid parental leave in Australia
Australian employees are entitled to up to 12 months of unpaid leave after either they or their partner gives birth. This may be referred to as maternity or paternity leave in Australia. They can also ask to extend their leave for another 12 months. Employees can take this leave if they have worked for their employer for at least 12 months.
Eligibility for maternity, paternity, and parental leave in Australia
Eligible employees can take unpaid parental leave when:
- They give birth
- Their spouse or de facto partner gives birth
- They adopt a child under 16 years of age
To be eligible for maternity, paternity or parental leave, employees must have worked for their employer for at least 12 months. These employees can take up to 12 months of unpaid parental leave and can ask to extend their leave by an additional 12 months.
How maternity and parental leave works in Australia
Employees taking unpaid parental leave have to take it within 24 months of the birth or placement of the child. They can take it as a single, continuous period, flexibly for up to 100 days, or a combination of both. Employees can start their leave from six weeks before the expected date of birth (or more with their employer’s agreement). Employees who want to take parental leave have to give their employer written notice of their leave, including the expected start date and end date. This generally has to be given at least 10 weeks before the expected start date.
Flexible parental leave
Employees in Australia can take up to 100 days of their parental leave flexibly. That means they can take one or more days of leave off work using their parental leave entitlement. The total of both flexible and continuous leave can’t be more than 12 months unless their leave is extended.
Maternity, paternity, and parental leave for casual employees in Australia
Casual employees are also eligible for unpaid parental leave, as long as they have worked for their employer on a regular and systematic basis for at least a year and have a reasonable expectation of this work continuing.
Pay for parental leave in Australia
Eligible employees can get paid parental leave pay from the Australian government (under the Paid Parental Leave scheme) or their employer, or both.
Adoption leave in Australia
Maternity, paternity, and parental leave is also available to employees who adopt a child, as long as that child is under 16 years old. This is sometimes known as adoption leave. The conditions needed for them to take this leave are the same as those for birth parents.
How adoption leave works in Australia
Like with parental leave for birth parents, employees who are planning to adopt a child must notify their employer of their intention to take adoption leave at least 10 weeks before the expected start date. They can then take up to 12 months of adoption leave, and can ask to extend it for an additional 12 months.
Adoption leave pay in Australia
There have recently been some changes to the way parental leave pay is calculated for parents in Australia, whether they give birth to a child or adopt. For children born or adopted after 1 July 2023 but before 1 July 2024, Parents can take up to 100 days of parental leave pay. As of 1 July 2024, this has been increased to 110 days.
When two parents both take parental leave, this pay is divided between them. The birth parent or primary carer often takes most of the pay, but 10 days are reserved for their partner. Families can also decide to split the paid parental leave however they like.
Dad and Partner Pay in Australia
Dad and Partner Pay is a previous payment made to the partners of those giving birth or adopting a child, to take care of their child for up to two weeks. This payment has now been combined with parental leave pay.
Flexible parental leave in Australia
Like birth parents, adoptive parents in Australia can choose to take up to 100 days of their parental leave flexibly, as long as the total period of leave isn’t more than 12 months. For example, if a parent chooses to go back to work after six months of parental leave, they could take off 100 additional days as flexible parental leave during the next six months. These can be taken as individual days or in blocks. An employee can also ask to extend their unpaid adoption leave by up to 12 months.
Other leave in Australia
Australian employees are also entitled to several other leaves according to the NES. Certain awards and registered agreements may also provide for different types of leave, or grant the employee more generous leave than the NES. Employees can also decide to offer their employees additional paid time off according to their paid time off policy.
Compassionate leave
The NES grant all employees the right to compassionate leave, including casual employees. This is also known as bereavement leave. Compassionate leave can be taken when:
- A member of the employee’s immediate family dies or contracts a life-threatening illness
- A baby in the employee’s household or family is stillborn
- The employee or their spouse has a miscarriage
Eligible employees can take two days compassionate leave every time one of the above situations occurs. For casual employees, this leave is unpaid, but permanent employees should be paid at their base rate for the hours they would ordinarily work. It’s not possible to cash out compassionate leave.
Family and domestic violence leave
All employees are entitled to up to 10 days of family and domestic violence leave each year. This leave is available to anyone experiencing violent, threatening, or abusive behaviour from either a close relative, a member of their household or a current or former partner. All employees, including casual employees, should be paid for this leave at their normal rate of pay.
Community service leave
Community service leave is a type of leave that employees can take off work for jury duty or emergency management activities. For example, an employee may take time off work to deal with an emergency or natural disaster. Community service leave of this type is usually unpaid. However, when an employee takes time off work for jury duty, their employer has to make up the difference between the payments they receive from the court and their normal pay rate.
Long service leave
Long service leave is a type of leave that employees in Australia can take if they’ve worked for the same employer for a long time. Laws in each state and territory determine how long an employee has to be working to be eligible for long service leave, and how much long service leave they get.
Unlimited paid time off in Australia
Some employers in Australia now offer their employees unlimited paid time off. When employers have an unlimited paid time off policy, employees can take as much annual leave as they want, and each day will be paid. Of course, these policies require a certain level of trust, but it can be extremely valuable in attracting and retaining employees.
Public holidays in Australia
In Australia, public holidays are days when employees are generally entitled to take the day off work. Employers may request that employees work on a public holiday if the request is considered ‘reasonable,’ and employees may refuse the request if their refusal is also ‘reasonable.’ Determining what is reasonable depends on factors such as the needs of the business, the type of work performed, personal circumstances of the employee and whether additional pay or another form of compensation will be provided.
Pay for public holidays in Australia
Full-time and part-time employees who do not work on a public holiday are entitled to receive their ordinary rate of pay for the hours they would normally have worked.
Employees who do work on a public holiday may be entitled to additional pay under their award or registered agreement, such as penalty rates or time off in lieu. Employers may implement their own public holiday policy outlining how work performed on public holidays will be compensated.
Public holidays while employees are on leave
If a public holiday falls during a period of annual leave, the day must be treated as a public holiday and not deducted from the employee’s leave balance. Employees are paid their ordinary hours for that public holiday.
Public holidays in Australia in 2026 (Australian Capital Territory)
Public holidays in Australia vary by state and territory. The following dates apply to the Australian Capital Territory in 2026:
Thursday 1 January
New Year’s Day.
Monday 26 January
Australia Day.
Monday 9 March
Canberra Day
Friday 3 April
Good Friday
Saturday 4 April
Easter Saturday.
Sunday 5 April
Easter Sunday
Monday 6 April
Easter Monday
Saturday 25 April
ANZAC Day.
Monday 1 June
Reconciliation Day
Monday 8 June
King’s Birthday
Monday 5 October
Labour Day
Friday 25 December
Christmas Day
Saturday 26 December
Boxing Day
Protect your employees and your business
As an employer in Australia, you need to understand your employees’ rights and entitlements. But keeping up with them can be a lot of work.
When you hire workers with CXC, we’ll ensure your engagements are in line with all local, national and international employment regulations. That way, your workers will get their benefits they’re entitled to, and your business will be protected from risk.
FAQ's
What is a leave policy Australia and how does it compare to PTO?
A leave policy Australia is a structured system of statutory entitlements that defines how employees take time off work. Unlike some countries that use a single Paid Time Off (PTO) model, Australia separates leave into distinct categories such as vacation days Australia, sick leave Australia, and maternity leave Australia.
This means employers must manage each type of leave individually rather than offering a combined pool. The framework is governed by the National Employment Standards (NES), which set minimum legal requirements for all employees.
Under a typical leave policy Australia, employees are entitled to:
- Annual leave, commonly referred to as vacation days Australia
- Personal/carer’s leave, also known as sick leave Australia
- Public holidays
- Parental leave, including maternity leave Australia
- Other leave types such as compassionate leave
Each category has its own rules for accrual, usage, and payment. For example, vacation days Australia accrue progressively based on hours worked, while sick leave Australia is allocated annually and accumulates over time if unused.
For employers, managing a leave policy Australia requires accurate tracking and alignment with payroll systems. Mismanagement can lead to compliance issues, disputes, or underpayment claims.
For international companies, this structured approach can feel more complex than flexible PTO systems. However, it provides clarity and ensures employees receive specific entitlements.
Many organisations choose to enhance their leave policy Australia by offering additional flexibility or benefits. However, they must always meet minimum legal standards, particularly around maternity leave Australia and statutory leave entitlements.
In summary, a leave policy Australia is a clearly defined system of separate leave types rather than a single PTO allowance. Understanding how these entitlements work together is essential for compliance and effective workforce management.
What are the rules for vacation days Australia?
The rules for vacation days Australia, also known as annual leave, are set under the National Employment Standards and provide full-time employees with a minimum of four weeks of paid leave per year.
Vacation days Australia accrue progressively based on an employee’s ordinary working hours. Part-time employees receive a pro-rata entitlement, ensuring fairness across different working arrangements.
Key features of vacation days Australia include:
- A minimum of four weeks of paid leave per year for full-time employees
- Pro-rata entitlements for part-time employees
- Progressive accrual throughout the year
- Unused leave carries over from year to year
- Payment at the employee’s base rate of pay
In some cases, employees such as shift workers may be entitled to an additional week of vacation days Australia, depending on their working conditions and applicable awards.
For businesses, managing vacation days Australia is a key part of implementing a compliant leave policy Australia. Employers must ensure that leave balances are tracked accurately and reflected correctly in payroll systems.
Encouraging employees to take their vacation days Australia regularly is also important. Excessive leave accruals can create financial liabilities and impact workforce planning.
Additionally, unused annual leave must generally be paid out when employment ends, making accurate record-keeping essential.
Vacation days Australia also interact with other entitlements, such as sick leave Australia and maternity leave Australia, requiring careful coordination within overall leave management.
In summary, vacation days Australia provide employees with essential paid time off, and employers must manage accrual, usage, and payment carefully to ensure compliance with a broader leave policy Australia.
Can employees cash out vacation days Australia?
Yes, employees can cash out unused vacation days Australia, but only under specific legal conditions. This process must comply with Fair Work regulations and form part of a compliant leave policy Australia.
Cashing out vacation days Australia is not automatic and must be agreed upon by both the employer and the employee. It is designed to provide flexibility while ensuring that employees still take adequate time off for rest and wellbeing.
Key conditions include:
- A written agreement between employer and employee
- The employee must retain a minimum leave balance (typically at least four weeks)
- Payment must be at the same rate as if the leave were taken
- Compliance with any applicable award or agreement
Not all employees are eligible to cash out leave. Some awards or employment contracts may restrict or regulate this option.
For employers, managing cash-out arrangements is an important aspect of leave policy Australia. It requires careful documentation and adherence to legal requirements to avoid compliance risks.
While cashing out vacation days Australia can provide financial flexibility, it should not replace regular leave usage. Employers still have a responsibility to ensure employees take time off for health and wellbeing.
Cashing out leave does not affect other entitlements such as sick leave Australia or maternity leave Australia, which remain separate under Australian law.
For businesses, integrating these processes into payroll and leave tracking systems is essential to maintain accuracy.
In summary, employees can cash out vacation days Australia under strict conditions, but it must be managed carefully within a compliant leave policy Australia framework.
Can employers force employees to take vacation days Australia?
Yes, employers in Australia can require employees to take vacation days Australia, but only if the direction is reasonable and compliant with employment laws or applicable awards.
Under a structured leave policy Australia, employers have some flexibility to manage leave balances, particularly in situations where employees have accrued excessive leave or during planned business shutdowns.
Common scenarios where employers may direct employees to take vacation days Australia include:
- Company shutdown periods, such as over Christmas or New Year
- Employees with excessive leave balances
- Operational or business requirements
However, any direction must be reasonable. Employers should:
- Provide adequate notice
- Consider the employee’s personal circumstances
- Ensure the request aligns with employment contracts or awards
Unreasonable or forced leave without proper justification may breach employment laws and create disputes.
For organisations managing leave policy Australia, it is important to strike a balance between operational needs and employee rights. Encouraging employees to take leave proactively is often more effective than enforcing it.
This approach also supports employee wellbeing, alongside other entitlements such as sick leave Australia and maternity leave Australia.
Proper planning and communication are key to managing vacation days Australia effectively. Employers should ensure that policies are clearly documented and consistently applied.
In summary, employers can require employees to take vacation days Australia, but only under reasonable and compliant conditions within a well-managed leave policy Australia.
Who qualifies for five weeks of vacation days Australia?
In Australia, employees who qualify for five weeks of vacation days Australia are typically shift workers who meet specific criteria under the National Employment Standards or relevant awards.
While the standard entitlement under a leave policy Australia is four weeks of annual leave, certain roles involve irregular hours, night shifts, or continuous operations. These conditions may entitle employees to an additional week of vacation days Australia.
Eligibility generally depends on:
- Being classified as a shift worker under an award or agreement
- Working regular shifts outside standard daytime hours
- Meeting criteria set out in employment regulations
For employers, correctly identifying eligible employees is essential when managing leave policy Australia. Misclassification can lead to underpayment, compliance issues, or disputes.
Not all employees who work non-standard hours automatically qualify. Employers must refer to the relevant award or agreement to determine eligibility accurately.
Managing this entitlement requires coordination with payroll systems and accurate tracking of vacation days Australia balances.
Additionally, employers must ensure that all other entitlements, such as sick leave Australia and maternity leave Australia, are managed alongside annual leave within a comprehensive leave policy Australia.
For businesses, having clear policies and documentation helps ensure that entitlements are applied consistently and transparently.
In summary, five weeks of vacation days Australia applies primarily to shift workers who meet specific legal criteria, and it must be managed carefully within a compliant leave policy Australia.
How long is maternity leave Australia and what does it include?
Maternity leave Australia is structured through a combination of government-funded paid leave and employer-provided unpaid leave entitlements. This forms a key part of any compliant leave policy Australia.
Under current regulations, eligible employees can access up to 20 weeks of government-funded Paid Parental Leave, paid at the national minimum wage. In addition, employees are entitled to up to 12 months of unpaid parental leave, with the option to request a further 12-month extension.
A typical maternity leave Australia structure includes:
- Up to 20 weeks of paid leave funded by the government
- Up to 12 months of unpaid parental leave
- The right to request an additional 12 months of unpaid leave
- Job protection during the leave period
While government payments are standard, some employers enhance their leave policy Australia by offering additional paid parental leave benefits. These are not mandatory but can support employee retention and engagement.
For businesses, managing maternity leave Australia requires coordination between HR and payroll systems. Employers must ensure that leave is recorded correctly and that employee entitlements—such as accrued vacation days Australia and sick leave Australia—are maintained appropriately during the leave period.
It is also important to communicate clearly with employees about their entitlements, return-to-work arrangements, and any flexible working options.
For organisations hiring in Australia, understanding how maternity leave Australia fits within the broader leave policy Australia is essential for compliance and workforce planning.
In summary, maternity leave Australia provides a combination of paid and unpaid leave with job protection, forming a key component of employee entitlements.
Who is eligible for maternity leave Australia?
Eligibility for maternity leave Australia depends on both government criteria for paid leave and employment conditions for unpaid parental leave. Understanding these requirements is essential for implementing a compliant leave policy Australia.
To qualify for government-funded paid parental leave, employees must meet specific criteria, including:
- Passing a work test based on recent employment history
- Meeting income thresholds
- Being the primary carer of the child
- Satisfying residency requirements
For unpaid parental leave under employment law, employees are generally required to have completed at least 12 months of continuous service with their employer.
Eligibility considerations for maternity leave Australia include:
- Employment type (full-time, part-time, or long-term casual)
- Length of service with the employer
- Compliance with government eligibility requirements
Some workers, such as independent contractors or casual employees with irregular service, may not qualify for all aspects of maternity leave Australia.
For employers, it is important to assess eligibility carefully and communicate entitlements clearly as part of a structured leave policy Australia. Misunderstanding eligibility can lead to disputes or compliance issues.
In addition, employers should ensure that other entitlements, such as vacation days Australia and sick leave Australia, are managed appropriately alongside parental leave.
Many organisations also choose to provide enhanced parental benefits beyond statutory requirements, supporting employee wellbeing and retention.
In summary, eligibility for maternity leave Australia depends on employment status, service length, and government criteria, making clear policies and communication essential.
What qualifies as sick leave Australia?
Sick leave Australia, also known as personal/carer’s leave, allows employees to take paid time off when they are unable to work due to illness, injury, or caregiving responsibilities. It is a core component of any compliant leave policy Australia.
Under the National Employment Standards, full-time employees are entitled to 10 days of paid sick leave Australia per year. This leave accrues progressively and carries over if unused.
Sick leave Australia can be used for:
- Personal illness or injury
- Medical appointments
- Caring for an immediate family or household member
Part-time employees receive a pro-rata entitlement based on their working hours, while casual employees do not receive paid sick leave but may have other protections.
Employers may require evidence for sick leave Australia, such as a medical certificate or statutory declaration, particularly for extended absences.
For businesses, managing sick leave Australia is closely linked to payroll and workforce planning. Leave must be tracked accurately and reflected correctly in payroll systems.
Sick leave Australia also interacts with other entitlements, including vacation days Australia and maternity leave Australia, requiring careful coordination within the overall leave policy Australia.
Failure to manage sick leave correctly can result in compliance risks or employee disputes.
In summary, sick leave Australia provides essential protection for employees during periods of illness or caregiving, and must be managed carefully within a compliant leave policy Australia framework.
Can employees resign while on sick leave Australia?
Yes, employees in Australia can resign while on sick leave Australia. There are no legal restrictions preventing resignation during a period of illness, provided that normal employment conditions are followed.
Even while on sick leave Australia, employees are generally required to comply with their contractual notice period unless otherwise agreed with the employer.
Key considerations include:
- Providing notice in line with the employment contract
- Managing final pay, including unused vacation days Australia
- Ensuring compliance with termination requirements
For employers, handling resignations during sick leave Australia requires coordination between HR and payroll systems. This ensures that all entitlements are calculated correctly and paid out as required.
A well-structured leave policy Australia should outline how such situations are managed, including:
- Notice period expectations
- Final pay calculations
- Treatment of accrued leave
Employers must also ensure that any outstanding entitlements, including vacation days Australia, are paid correctly upon termination.
While resignation during sick leave Australia is permitted, both parties should handle the process professionally to avoid disputes.
For organisations, clear policies and consistent processes help ensure that resignations are managed fairly and compliantly.
In summary, employees can resign while on sick leave Australia, but standard employment rules still apply, and employers must manage the process carefully within their leave policy Australia.
Why partner with CXC for leave policy Australia compliance?
Partnering with CXC ensures your leave policy Australia is managed accurately, compliantly, and efficiently. We help businesses navigate complex entitlements such as maternity leave Australia, sick leave Australia, and vacation days Australia with confidence.
Managing leave in Australia involves multiple layers of compliance, from tracking entitlements to aligning payroll with legal requirements. Without the right systems and expertise, this can quickly become complex.
CXC provides practical, hands-on support to help you:
- Implement a compliant leave policy Australia aligned with local laws
- Manage maternity leave Australia, including eligibility and entitlements
- Track and administer sick leave Australia accurately
- Monitor and manage vacation days Australia balances
- Ensure payroll reflects all leave entitlements correctly
- Stay up to date with regulatory changes
Our approach focuses on simplicity and accuracy. We ensure that all aspects of your leave policy Australia work seamlessly with your payroll and HR processes.
We have supported organisations across industries and regions, helping them manage workforce complexity and expand into Australia with confidence.
Whether you are hiring your first employee or scaling a larger team, we provide the expertise needed to manage leave effectively and reduce compliance risk.
In summary, CXC helps you simplify and optimise your leave policy Australia, ensuring that maternity leave Australia, sick leave Australia, and vacation days Australia are managed correctly from day one.
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