Both employers and employees have rights and responsibilities when it comes to leave entitlements under the Fair Work Act 2009.

Understanding these entitlements ensures that employees can take necessary time off for rest or personal matters, while employers can meet their legal obligations and promote a positive work environment.

The Fair Work Act 2009 covers various types of leave entitlements, including (but not limited to) annual leave, personal/carer’s leave, compassionate leave, unpaid parental leave and long service leave.

Each type of leave is designed for specific circumstances—from holidays to family emergencies—ensuring that employees can balance their personal needs with their professional responsibilities.

Types of leave

Annual leave

Annual leave allows employees to take time off from work to rest and recharge. Under the Fair Work Act 2009, full-time and part-time employees accrue annual leave at a rate of four weeks per year based on their ordinary hours of work. 

In certain circumstances, some shiftworkers may be entitled to an additional week of annual leave provided they meet various requirements.

While casual employees do not typically receive paid annual leave, they are compensated through a higher hourly rate (the casual loading), which accounts for this entitlement.

Personal/carer’s leave

Personal/carer’s leave is designed to support employees when they are unwell or need to care for a family member. 

Under the Fair Work Act 2009, full-time employees are entitled to 10 days of paid personal/carer’s leave per year, while part-time employees receive a pro-rata amount. 

Casual employees are not entitled to paid personal leave. However, they can access up to two days of unpaid carer’s leave if needed.

Employers can request reasonable evidence, such as a medical certificate, to support a leave request. It is important to handle these requests with sensitivity and maintain confidentiality.

Compassionate leave 

Compassionate leave is available when employees need time off due to the loss of a member of their immediate family or household or when they face an unexpected emergency. 

Under the Fair Work Act 2009, employees are entitled to two days of compassionate leave each time such an event occurs.

Employees can take this leave as a single continuous period or broken into separate days if needed. 

Employers may ask for reasonable evidence to support the request and should handle it with care and respect for the employee’s circumstances.

Unpaid parental leave

Parental leave allows eligible employees to take time off for the birth or adoption of a child. 

Employees who have been with their employer for at least 12 months are entitled to up to 12 months of unpaid leave, with the option to request an additional 12 months if agreed to by the employer. 

Employees are entitled to return to their previous role or an equivalent position at the end of their leave.

Some employees may also be eligible to apply for paid parental leave through the government’s Paid Parental Leave scheme.

However, this is not an entitlement under the Fair Work Act 2009; employees must apply for it separately. 

Given the various provisions surrounding parental leave— including other situations where employees can take unpaid parental leave—members are encouraged to view the dedicated parental leave guide on our portal for more detailed information.

Long service leave

Long service leave entitlements vary depending on the state/territory in which the employee works and any applicable pre-modern awards. 

Generally, employees become eligible for long service leave after seven to 10 years of continuous service with the same employer, depending on the specific state/territory legislation. 

In some cases, employees may also be entitled to pro-rata long service leave upon termination if they meet the relevant criteria under the applicable state/territory legislation.

It is essential for both employers and employees to check the specific long service leave rules in their state/territory or industry because these may affect how leave is accrued and when it can be taken.

Encouraging employees to take leave

Taking leave is more than a compliance requirement—it supports employee health and wellbeing. 

Regular breaks help reduce stress, prevent burnout and lower work health and safety risks, fostering a healthier workplace.

Additionally, employees with excessive leave balances can pose a significant financial burden. Encouraging employees to take leave regularly can help manage this risk effectively.

Employers can adopt strategies such as:
•    regular reminders—keep employees informed of their leave balance and the importance of taking time off
•    leave planning—encourage planning in advance to manage workloads effectively
•    a positive example—take leave yourself.

Overall, a healthy leave culture boosts morale, lowers absenteeism and increases productivity.

Practical tips for employers

Managing leave entitlements effectively is key to ensuring compliance and maintaining employee satisfaction. Employers should:
•    maintain up-to-date records of all leave balances and requests
•    make sure employees are aware of their leave entitlements and how to access them
•    promote a workplace culture where employees feel comfortable taking leave and are reminded to use their entitlements to rest and recharge.

Conclusion

Understanding and managing leave entitlements under the Fair Work Act 2009 is not just about compliance— it is about creating a supportive workplace culture that values employee wellbeing. 

Encouraging employees to take leave helps meet legal obligations while promoting mental health and preventing burnout, which benefits the entire organisation. 

Employers should regularly review their leave policies to ensure they align with the Act and consider seeking professional advice if unsure about specific entitlements.

>> Content supplied. The HR in Practice specialist workplace relations and work (occupational) health and safety advisory service is operated by Wentworth Advantage.

For more assistance, contact the HR in Practice Service on 1300 138 954 or email hrinpractice@australian.physio.

Disclaimer: The material contained in this publication is general comment and is not intended as advice on any particular matter. No reader should act or fail to act on the basis of any material contained herein. The material contained in this publication should not be relied on as a substitute for legal or professional advice on any particular matter. Wentworth Advantage Pty Ltd, expressly disclaim all and any liability to any persons whatsoever in respect of anything done or omitted to be done by any such person in reliance whether in whole or in part upon any of the contents of this publication. ©Wentworth Advantage Pty Ltd 2024.