Bereavement Pay Rules and Employer Obligations in Australia

When someone in your team loses a loved one, work is rarely the first thing on their mind. But as an employer, you’re often the person who has to respond quickly, compassionately, and in line with the law.

This is where questions about bereavement pay can get confusing for small businesses. Is it required? Who is eligible? How many days do you need to offer? And what should you put in a policy so your managers know what to do when a request comes in?

In this guide, we’ll walk you through the basics of bereavement pay in Australia, how it fits into the Fair Work framework, and how you can create a bereavement policy that’s fair, consistent, and workable for your business.

What Is Bereavement Pay (And How Does It Work In Australia)?

In Australia, time off after a death is usually covered by compassionate leave under the National Employment Standards (NES) in the Fair Work Act.

In practice, people often use the term “bereavement pay” to describe the pay an eligible employee receives while they are on compassionate leave due to a death (or, in some cases, a life-threatening illness or injury) affecting a member of the employee’s immediate family or household.

It’s important to separate a few related concepts:

• Compassionate leave: the legal entitlement to take time off in specific circumstances (including death).
• Bereavement pay: the payment you may need to provide if that compassionate leave is paid (depending on the employee’s status and any industrial instrument that applies).
• Bereavement policy: your internal workplace policy explaining how your business manages requests, evidence, cultural needs, and any extra paid leave you choose to offer.

If you have employees covered by a modern award or enterprise agreement, there may be additional rules, different definitions, or more generous entitlements. That’s why it’s best to treat the NES as the baseline, then check what applies on top.

When Do You Have To Pay Bereavement Pay?

In general, you must provide paid leave when:

• the employee is entitled to paid compassionate leave (often full-time and part-time employees), and
• they take compassionate leave for a qualifying reason (including the death of an immediate family member or a member of the employee’s household).

For employers, the practical takeaway is:

Full-time and part-time employees are generally entitled to paid compassionate leave, while casual employees are usually only entitled to unpaid compassionate leave.

That said, the exact entitlement can depend on:

• their employment type (full-time, part-time, casual),
• their applicable modern award or enterprise agreement, and
• their employment contract and your policies (if you offer extra benefits above the minimum).

If you’re unsure whether an employee is casual, part-time, or full-time (or whether someone has been incorrectly classified), it’s worth getting that checked early, because leave entitlements and pay obligations flow directly from classification.

How Much Compassionate Leave Applies?

Under the NES, compassionate leave is generally 2 days per permissible occasion.

Those 2 days can usually be taken as:

• a single continuous 2-day period, or
• 2 separate days, or
• any other period agreed between you and the employee (which can be helpful if they need time for travel, cultural obligations, or administrative matters later).

Who Counts As Immediate Family Or Household Member?

“Immediate family” and “household member” are defined in the Fair Work framework. As a general guide, they can include close relationships like a spouse or de facto partner, child, parent, grandparent, grandchild, sibling, and corresponding in-law relationships. The exact scope can be technical, and it may be expanded or addressed differently under an award or enterprise agreement.

Because definitions can be technical (and sometimes broadened by awards or agreements), a good policy doesn’t just repeat the legal wording. It also sets out a process for employees to talk to you if they need leave for someone who doesn’t neatly fit within the definition but is still a significant relationship (for example, kinship structures in some communities).

Do Casual Employees Get Bereavement Pay?

This is one of the most common questions small businesses ask.

Casual employees are typically entitled to unpaid compassionate leave under the NES, not paid bereavement leave (unless a modern award, enterprise agreement, or your own policy provides more).

That doesn’t mean you can’t offer paid leave to casuals. Many businesses choose to offer a discretionary paid day (or two) to support their team and promote retention, especially in industries that rely on a stable casual workforce.

If you do decide to offer paid bereavement leave to casuals, the key is to document it clearly so it’s consistent and doesn’t create confusion about casual status.

What About Long-Term Casuals?

Some casual employees may have additional rights depending on their working pattern and whether they convert (or should have been offered conversion) into permanent employment.

If you have long-term casuals and you’re unsure how their entitlements should work in practice, it’s worth reviewing your casual arrangements and employment documents, including your Employment Contract approach for casual team members.

How To Create A Fair Bereavement Pay Policy (That Still Works Operationally)

Having a policy matters for two big reasons:

• Consistency: your managers know what to do and your team feels they’re being treated fairly.
• Risk management: you reduce the chance of misunderstandings, payroll errors, complaints, or discrimination issues (for example, treating two employees differently because of assumptions about their family structure or culture).

A well-written bereavement pay policy doesn’t have to be long. But it should cover the situations that come up in the real world.

1. Start With The Minimum Legal Entitlement

Your policy should clearly state the minimum position under the NES (and any relevant award or enterprise agreement), including:

• who is eligible for paid vs unpaid compassionate leave,
• how many days are available per occasion, and
• what the leave can be used for (death and, where relevant, life-threatening illness or injury).

This helps avoid accidental underpayments and sets a clear baseline for managers.

2. Decide Whether You’ll Offer Extra Bereavement Pay

Many small businesses choose to offer more than the minimum because it:

• supports wellbeing and psychological safety at work,
• improves retention (especially in competitive hiring markets), and
• reduces the likelihood of “grey area” disputes when someone needs more time.

Common options include:

• Extra paid days (for example, 1–3 additional days per occasion).
• Flexible paid leave for travel (particularly if funerals are interstate or overseas).
• A discretionary bereavement payment for casuals (for example, paying rostered shifts that would have been worked).

If you offer extra entitlements, your policy should clearly say whether it’s an automatic entitlement or discretionary, and who approves it.

3. Explain The Process For Requesting Leave

In practice, bereavement leave requests are often made quickly and informally (a text message, a phone call, or via a manager). Your policy should allow for that reality.

Consider including:

• who the employee should notify (manager, HR, owner),
• how soon they should notify you where possible, and
• what happens if they’re too distressed to follow the usual process right away.

You can also include a short statement encouraging managers to respond with empathy and privacy in mind.

4. Set A Practical Evidence Approach

Under the NES, employers can request evidence that would satisfy a reasonable person. However, this is an area where being overly rigid can damage trust quickly.

A fair policy usually states that you may request evidence, and gives examples such as:

• a funeral notice,
• a death notice,
• a statutory declaration, or
• other documentation appropriate in the circumstances.

If an employee offers a statutory declaration, it’s helpful to have an internal understanding of what’s acceptable and how it should be prepared. (If this is something your team deals with from time to time, it can also be useful to be familiar with how a Statutory Declaration is typically structured in an employment context.)

5. Consider Cultural And Community Obligations

Not every bereavement process looks the same. Some employees may need more time due to cultural obligations, community responsibilities, travel requirements, or multi-day ceremonies.

A fair policy might include:

• the option to access annual leave or unpaid leave in addition to compassionate leave,
• the ability to take leave flexibly (for example, a day now and a day later), and
• a commitment to consider reasonable requests without judgement.

Even where the NES sets the minimum, a thoughtful approach here can prevent conflict and support your team at a difficult time.

Managing Bereavement Pay With Rosters, Shift Cancellations, And Payroll

For many small businesses, bereavement leave becomes operationally challenging because it often happens unexpectedly. That can affect rosters, service delivery, and other staff workloads.

Your policy should align with how your business actually runs day-to-day, especially if you operate with shift workers.

Rosters And Shift Cover

A practical approach is to include in your policy that:

• the employee should advise you of any scheduled shifts that will be impacted (where possible), and
• the business will work with them to reallocate shifts without pressuring them to work while grieving.

If you regularly manage short-notice changes, it’s also worth ensuring your broader rostering approach is compliant and consistent. For example, your business may also benefit from having a compliant employee rostering process documented, so you’re not improvising when urgent leave comes up.

Pay Calculations And Record Keeping

From a payroll perspective, you’ll usually want to ensure:

• compassionate leave is correctly coded (paid vs unpaid),
• the correct pay rate is applied (base rate for ordinary hours, as relevant),
• any paid discretionary leave is recorded clearly, and
• you keep appropriate records in case of a query later.

Underpayments can happen even with good intentions, particularly if different managers handle leave differently or payroll is outsourced without clear instructions.

What If The Employee Is In Their Notice Period?

Sometimes an employee resigns and then experiences a death in the family during their notice period. Generally, compassionate leave can still apply.

However, the interaction between leave, notice periods, and final pay can become complicated quickly. If you’re dealing with a resignation at the same time as compassionate leave, it can help to understand your broader obligations around notice and final pay, including payment in lieu of notice where relevant.

What Else Should Be Included In Your Bereavement Policy And Employment Documents?

A bereavement pay policy should not sit in isolation. It works best when it fits into your broader employment documentation ecosystem, so expectations are consistent across the business.

Link It To Your Leave Framework

Most businesses include bereavement leave within a broader leave policy (or staff handbook) that covers annual leave, personal/carer’s leave, unpaid leave, and other workplace entitlements.

This helps you avoid a common issue: managers treating bereavement leave as “special leave” and making ad hoc decisions that aren’t consistent.

Make Sure Your Employment Contract Doesn’t Conflict

Your employment contracts should not reduce NES entitlements. Ideally, the contract and policy should align so employees aren’t confused about what applies.

If you’re hiring, updating contracts, or trying to standardise your documentation, having a properly drafted Employment Contract can help you set clear expectations around leave requests, evidence, and workplace procedures (without overcomplicating things).

Consider A Clear Process For Sensitive Conversations

Managers often struggle with what to say and what not to say. Your policy can help by including guidance like:

• keep details confidential and only share on a need-to-know basis,
• avoid asking intrusive questions about the death or relationship, and
• offer support options (for example, an employee assistance program if you have one).

These aren’t just “nice to have” items. They can reduce the risk of complaints and create a safer workplace culture.

Think About Discrimination And Adverse Action Risk

While compassionate leave is relatively straightforward on paper, issues can arise if an employee feels they were treated unfairly because they took leave, asked for time off, or refused shifts due to grief.

A consistent policy, manager training, and careful documentation are your best safeguards here.

Key Takeaways

• In Australia, “bereavement pay” is commonly used to refer to paid compassionate leave for eligible employees under the National Employment Standards (NES).
• Full-time and part-time employees are usually entitled to 2 days paid compassionate leave per permissible occasion, while casual employees are typically entitled to unpaid compassionate leave (unless an award, agreement, or your policy provides otherwise).
• A clear bereavement policy helps you respond consistently, support your staff appropriately, and reduce payroll and compliance risk.
• Practical policies cover eligibility, the request process, evidence, flexibility for cultural obligations, and how leave interacts with rosters and payroll.
• Your bereavement policy should align with your broader employment documents, including your Employment Contract and workplace policies, to avoid confusion and disputes.

If you’d like help creating a bereavement pay policy or reviewing your employment documents, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.