Leave Policy in Australia: An Easy Guide for US Companies
Key differences, compliance tips, and employee rights explained.
Australia has some of the most robust employee leave entitlements in the world. For U.S. companies hiring Australian employees or expanding into Australia, it’s important to understand your obligations and how local laws differ from U.S. practices.This guide outlines the key leave entitlements in Australia, including annual leave, sick leave, public holidays, and more.
1. Annual Leave (Paid Vacation)
Employees in Australia are entitled to a minimum of four weeks of paid annual leave per year. This increases to five weeks for certain shift workers.- Leave accrues progressively based on ordinary hours worked.
- Unused leave carries over from year to year.
- Employees can request to take leave at any time, but employers must approve it in writing.
- Employers can’t unreasonably refuse leave requests.
2. Sick Leave (Personal Leave)
Also known as personal/carer’s leave, this allows employees to take time off for illness or to care for an immediate family member.- 10 days of paid personal leave per year (accrues over time).
- Unused sick leave carries over from year to year.
- Employers may request reasonable evidence (like a doctor’s note).
3. Public Holidays
Australia has national public holidays, as well as regional/state holidays.- Employees are entitled to paid time off on public holidays, if it’s a day they would normally work.
- Public holiday entitlements vary by state and territory.
4. Parental Leave
Employees are eligible for unpaid parental leave if they have worked with the same employer for at least 12 months.- Up to 12 months unpaid leave, with a right to request an additional 12 months.
- Leave can be shared between both parents.
- The Australian government provides Paid Parental Leave separately from employers.
5. Long Service Leave
Employees who have worked with the same employer for a long time are entitled to long service leave.- Typically becomes available after 7 to 10 years, depending on the state.
- Entitlement is usually 8.67 weeks of paid leave after 10 years.
- Rules vary significantly by state.
6. Compassionate and Bereavement Leave
Employees are entitled to leave if a family member dies or suffers a life-threatening illness or injury.- 2 days paid leave per permissible occasion for full-time and part-time employees.
- Can be taken as a continuous period or separate days.
- Casual employees are entitled to 2 days unpaid leave.
7. Community Service Leave
Employees can take leave for eligible community service activities, such as jury duty or voluntary emergency management activities.- Jury duty is paid leave (with limitations on the amount an employer must pay).
- Other community service leave is unpaid.
8. Casual Employees and Leave
Casual workers don’t receive paid leave entitlements like annual or personal leave.- Instead, they are paid a casual loading (typically 25%) on top of their hourly wage to compensate for the lack of leave benefits.
Why this matters for US employers
Hiring in Australia means complying with local labor laws. That includes:- Tracking and paying leave entitlements correctly
- Understanding when leave is paid vs. unpaid
- Respecting state-specific laws (especially for public holidays and long service leave)
Frequently Asked Questions
How does annual leave accrue in Australia?
Annual leave accrues progressively based on an employee’s ordinary hours of work. Full-time and part-time employees are entitled to 4 weeks per year. For a typical 38-hour week, that works out to about 2.92 hours per week (Fair Work Ombudsman; BlandsLaw example).Do casual employees get sick leave in Australia?
No. Casual employees don’t receive paid sick or carer’s leave. They are instead paid a higher hourly rate (casual loading). Casuals can access unpaid carer’s leave in certain situations (Fair Work Ombudsman — Sick and carer’s leave; Fair Work Ombudsman — Casual employees).Is unused leave paid out if an employee quits?
Yes. When employment ends, employers must pay out any unused annual leave the employee has accumulated. If the employee receives annual leave loading when taking leave, that loading is also paid out on termination (Fair Work Ombudsman — Payment for annual leave).What’s the difference between paid parental leave and unpaid leave?
Unpaid parental leave is a job-protected entitlement under the National Employment Standards for eligible employees, generally up to 12 months with a right to request an additional 12 months. Paid Parental Leave is a government-funded payment (Parental Leave Pay) based on the national minimum wage. Employers may act as the paymaster in many cases, but the benefit is funded by the government (Fair Work Ombudsman; Services Australia — Parental Leave Pay).Do public holiday rules vary by state?
Yes. Each state and territory has its own public holiday schedule. Employers need to check state-specific holidays to remain compliant.Related articles
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