Compassionate Leave in Australia: What Employers Should Know

When a team member experiences a death or a life‑threatening situation in their immediate family, you’ll want to respond with empathy and clarity. That’s exactly what Australia’s National Employment Standards (NES) are designed to support through compassionate leave.

As a small business owner, understanding how compassionate leave works - when it applies, how many days employees get, whether it’s paid or unpaid, and what evidence you can request - helps you support your people and stay compliant.

In this guide, we break down what compassionate leave is in Australia, what you need to do as an employer, and how to build a clear, fair process into your contracts and policies.

What Is Compassionate (Bereavement) Leave In Australia?

Compassionate leave (sometimes called bereavement leave) gives an employee time off when a member of their immediate family or household:

• Dies, or
• Contracts a life‑threatening illness or suffers a life‑threatening injury, or
• Experiences a miscarriage (the employee or their current spouse/partner).

Under the NES, this entitlement applies to all national system employees. It sits alongside other minimum entitlements - it’s not discretionary and can’t be replaced by another benefit.

To keep things consistent, it’s a good idea to set out how your business handles this leave in both your Employment Contract and an internal policy that explains the process for applying, giving notice and providing evidence.

How Many Days Of Compassionate Leave Are Employees Entitled To?

Employees are entitled to 2 days of compassionate leave for each “permissible occasion”. There’s no annual cap - the entitlement is triggered each time a qualifying event occurs, even if that means multiple occasions in a year.

Key points for employers:

• Two days per occasion: Employees can take the leave as a continuous 2‑day period, 2 separate single days, or any other agreed arrangement (for example, one day now and one day for the funeral).
• Paid vs unpaid: Full‑time and part‑time employees receive paid compassionate leave at their base rate for the ordinary hours they would have worked. Casual employees are entitled to unpaid compassionate leave.
• No accrual: It does not accrue like annual leave or personal/carer’s leave. It’s available as needed for each occasion.

From a rostering and payroll standpoint, plan for flexibility. The timing can vary depending on hospital arrangements, funerals, cultural observances, and travel. A clear internal process reduces stress for everyone involved.

When Can Employees Take Compassionate Leave - And What Counts As “Immediate Family”?

Compassionate leave must be available when the event happens or shortly after, and the timing should be reasonable in the circumstances. Employees often take it to attend a funeral, make arrangements, or support family members.

Under the NES, “immediate family” generally includes a spouse or de facto partner, child, parent, grandparent, grandchild or sibling of the employee, or of the employee’s spouse/de facto. A household member also qualifies.

Real‑world examples that commonly trigger the entitlement:

• Employee’s parent has a life‑threatening stroke and is hospitalised.
• Employee’s spouse experiences a miscarriage.
• Employee’s grandparent passes away and the funeral is interstate.

If your team has culturally diverse needs, be open to how “reasonable” timing can look. For instance, some faiths require burials within 24 hours. A compassionate approach that still aligns with the NES will build trust and reduce disputes.

Notice And Evidence: What Can You Require?

Employees should let you know as soon as possible that they’re taking compassionate leave and how long they expect to be away. “As soon as possible” recognises that emergencies don’t follow a neat schedule - a phone call, text or email is typical.

You may ask for reasonable evidence to confirm the reason for the leave. This can include, for example, a death notice, funeral notice, hospital admission note, or a brief letter from a treating practitioner. The key is that it would satisfy a reasonable person the leave is genuinely required.

Guidelines for employers:

• Be consistent: Apply the same standard to all staff to avoid claims of unfairness.
• Keep it proportionate: Don’t request more than you reasonably need to confirm eligibility.
• Respect privacy: Limit who sees the evidence and store it securely in accordance with your internal processes.

Codify this in a clear Workplace Policy so employees know what to expect and managers apply the rules consistently.

How Compassionate Leave Interacts With Other Leave Types

In practice, compassionate leave often overlaps with other entitlements. Here’s how to approach the common scenarios.

Personal/Carer’s Leave

If an employee needs to care for an immediate family or household member who is ill or injured (but not necessarily life‑threatening), that’s generally personal/carer’s leave, not compassionate leave. If the situation escalates to a life‑threatening event, compassionate leave becomes available in addition to any personal leave taken.

Annual Leave

Employees can ask to use annual leave for extra time off around the funeral or to travel, but that’s a separate entitlement and subject to your approval (which shouldn’t be unreasonably refused). Don’t require an employee to use annual leave instead of compassionate leave - the NES entitlement stands on its own.

Unpaid Leave

If an employee needs more time than the 2 days, you can consider granting unpaid leave. It’s helpful to align your approach with your existing policy framework and any specific circumstances. Our overview of unpaid leave explains how this works under Australian employment law.

During Probation Or A Notice Period

Compassionate leave is available from day one, including during probation. If employment has ended and the employee is working out a notice period, they can still access compassionate leave for a qualifying occasion. For more on entitlements during notice, see this guide to employee leave during a notice period.

Payroll And Rostering: How Do You Handle Payment And Records?

For full‑time and part‑time employees, compassionate leave is paid at the base rate for their ordinary hours they would have worked during the leave period. There’s no penalty rates or loadings added for the leave itself.

Practical tips for small businesses:

• Payroll setup: Ensure your payroll system has a specific leave category for compassionate/bereavement leave so payments and reporting are accurate.
• Rostering: Build some buffer into schedules where possible. Cross‑training team members can help cover unexpected absences.
• Record‑keeping: Keep records of notice, dates taken and any evidence provided. This supports compliance and helps if questions arise later.

If you’re ever unsure how an award or enterprise agreement interacts with the NES, it’s wise to get tailored advice from an employment lawyer - particularly where shift patterns or allowances complicate the “ordinary hours” calculation.

Do Casual Employees Get Compassionate Leave?

Yes, casuals are entitled to 2 days of unpaid compassionate leave for each permissible occasion. They should still provide notice as soon as possible and, if requested, reasonable evidence.

To avoid confusion, make sure your contract templates and policies spell out the casual entitlement clearly, alongside how casual rosters will be adjusted when leave is taken.

What Should A Compassionate Leave Policy Include?

While the NES sets the minimum standard, a concise internal policy helps managers respond consistently and compassionately. We suggest covering:

• Eligibility and what events qualify (aligned with the NES).
• How to notify the business and who to contact.
• Evidence expectations (what’s “reasonable” and how it’s handled).
• Payment rules for permanent vs casual staff.
• How the leave interacts with other entitlements (e.g. personal leave, annual leave, unpaid leave).
• Privacy considerations and who will see any documents provided.
• Flexibility for cultural or religious practices around bereavement and funerals.

You can place the policy in your staff manual and reference it in each Employment Contract. If you don’t have a current policy framework, now is a good time to roll out a broader Workplace Policy suite so managers have a single source of truth across all leave types and conduct expectations.

Managing Requests Sensitively While Staying Compliant

In difficult times, a supportive approach goes a long way - and it also reduces legal risk by keeping communication open and expectations clear. Here’s a simple process you can follow.

1) Acknowledge And Clarify

Confirm you’ve received the request, show empathy, and let the employee know what (if any) evidence you’ll need and when. Keep the burden low - the person is likely dealing with challenging logistics and grief.

2) Check The Entitlement

Confirm eligibility (permanent vs casual; whether the event qualifies) and payment arrangements. If the employee needs more time, consider annual leave or unpaid leave options and document any agreement in writing (even a quick confirmation email helps avoid confusion).

3) Update Rosters And Payroll

Adjust the roster and process the leave under the correct category. For permanent staff, pay at base rate for their ordinary hours during the leave period.

4) Keep Records And Protect Privacy

Store any evidence securely, restrict access to those who need to know, and retain records in line with your usual HR file practices.

5) Follow Up

When the employee returns, a brief check‑in can support wellbeing and catch any further scheduling needs. Small gestures matter and help with retention and engagement.

Common Questions From Employers

How Long Is Compassionate Leave - And Can It Be Split?

It’s 2 days per occasion. The employee can take it in one block, split into single days, or another arrangement you both agree to (for example, one day for arrangements and one for the funeral a week later).

What If An Employee Has Already Booked Annual Leave?

If a qualifying event occurs, the employee can access compassionate leave for the relevant days. You can then work with them to shift any remaining annual leave to new dates.

Can Employees Take Compassionate Leave During A Notice Period?

Yes. Entitlements continue during a notice period. For related processes at the end of employment (unrelated to the leave entitlement), ensure your termination documents and communications are in order.

What Evidence Can We Request?

Anything “reasonable” to satisfy a reasonable person - for example, a funeral notice, a hospital letter or a brief note from a practitioner. Apply your standard consistently across the team and respect privacy.

What If The Employee Has Ongoing Wellbeing Needs?

Compassionate leave covers the immediate event. If the employee needs further time, consider personal/carer’s leave, annual leave, or unpaid leave and point them to your Employee Assistance Program if you have one. Where illness is ongoing, these tips for managing sick leave when entitlements run out may help you plan next steps.

Does This Affect Parental Leave Settings?

Compassionate leave can be relevant in miscarriage situations. Make sure your parental leave settings are up to date and reflected in your policy framework, including your Parental Leave Policy.

How To Embed Compassionate Leave In Your Contracts And Policies

To keep things simple for managers and staff, embed the rules into your standard documents and onboarding processes:

• Employment Contracts: Confirm NES entitlements apply and outline the notice/evidence process in plain English. Link back to your policy for the details.
• Workplace Policies: Include a clear compassionate leave section, evidence standards and who to contact. Make sure it’s consistent with the NES and any award or enterprise agreement that applies.
• Onboarding: Walk new starters through how to access leave, including compassionate leave, personal/carer’s leave and annual leave. This sets expectations early and reduces confusion later.
• Manager Training: Give your leaders a short checklist and template wording for acknowledging requests and asking for evidence sensitively.

If you’re updating contracts or policies, it’s a good time to review related areas like probation settings, personal leave, mental health support pathways, and how your team should handle leave during notice periods.

Key Takeaways

• Compassionate leave in Australia is a NES entitlement: 2 days per permissible occasion for death, life‑threatening illness/injury, or miscarriage.
• Permanent staff are paid at their base rate for ordinary hours; casuals receive unpaid compassionate leave.
• Employees must give notice as soon as possible and can be asked for reasonable evidence - keep requests consistent and proportionate.
• Set a clear process in your Employment Contract and Workplace Policy so managers handle requests fairly and compliantly.
• Plan for interactions with personal/carer’s leave, annual leave and unpaid leave when extra time is needed.
• When awards, rosters or unique circumstances make things complex, tailored advice from an employment lawyer will help you get it right.

If you’d like a consultation on setting up a compassionate leave policy and updating your employment documents, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.