Compassionate Leave vs Bereavement Leave in Australia

When an employee experiences a death or serious illness in their family, you want to support them while keeping your business compliant and running smoothly. That’s where understanding compassionate leave vs bereavement leave becomes important.

In Australia, these terms are often used interchangeably. However, it’s your obligations under the National Employment Standards (NES) and any applicable award or enterprise agreement that ultimately matter - not which label you use internally.

In this guide, we’ll clarify what the Fair Work framework requires, answer common employer questions (like “how many days?” and “is it paid?”), and share practical steps to update your leave policy, payroll and processes with confidence.

What’s The Difference Between Compassionate Leave And Bereavement Leave?

Under the Fair Work Act, “compassionate leave” is the legal term. Many businesses (and employees) call it “bereavement leave.” In practice, they refer to the same entitlement.

Compassionate leave is available when an employee’s immediate family or household member:

• Dies, or
• Has a life-threatening illness or injury, or
• Experiences events recognised under the NES such as a miscarriage or stillbirth involving the employee or their immediate family/household member.

So while “bereavement leave” is commonly used for time off relating to a death or funeral, the NES goes further by covering life‑threatening illness or injury and certain pregnancy loss scenarios. As an employer, it’s sensible to use “compassionate (bereavement) leave” in your policy so employees immediately understand the scope.

Who Is Entitled To Compassionate/Bereavement Leave In Australia?

This entitlement applies to employees covered by the NES across Australia - full-time, part-time and casual - regardless of the state or territory (so there isn’t a separate “NSW bereavement leave” or “VIC bereavement leave” standard).

“Immediate family” includes a spouse or de facto partner, child, parent, grandparent, grandchild or sibling of the employee; and these relationships extend to the immediate family of a spouse or de facto. It also includes any member of the employee’s household.

Some enterprise agreements and awards provide extra benefits. You can always offer more generous terms in your workplace policy or Employment Contract, but you can’t offer less than the NES minimums.

How Many Days Off And Is It Paid?

Under the NES, employees are entitled to 2 days of compassionate leave per permissible occasion.

• Full-time and part-time employees: Paid at the base rate for ordinary hours they would have worked during the leave period.
• Casual employees: Unpaid.

Key points employers often ask about:

• Per occasion: The entitlement resets for each qualifying event (for example, if separate family members pass away at different times).
• How it’s taken: It can be taken in a single 2-day block, 2 separate days, or in hours if agreed - whatever is best for the employee and practical for your business.
• When it can be taken: It’s available when the event happens, or when the employee needs to spend time with the affected family/household member (e.g. for a life‑threatening illness), or to attend a funeral or related arrangements.
• Interaction with other leave: Compassionate leave doesn’t come out of annual leave or personal/carer’s leave. It’s a separate entitlement and doesn’t accrue.

If the situation extends beyond two days, you can explore additional options such as paid discretionary leave under your policy, personal/carer’s leave (if applicable), or unpaid leave by agreement. A clear Workplace Policy helps you manage these situations consistently and fairly.

Practical Steps For Employers: Policies, Evidence And Payroll

Getting your processes right will support your team and reduce admin stress at a sensitive time.

1) Update Your Policy And Contracts

Ensure your leave policy uses the correct NES terminology, sets out who is entitled, how leave can be taken (including hours/part‑days by agreement), and what evidence you may request. Align your policy with your award/enterprise agreement, and cross‑reference your Employment Contract templates.

While you’re reviewing leave settings, it’s a good moment to check related policies too - for example, your Parental Leave Policy and internal procedures for family and domestic violence leave - so employees see a coherent, compassionate framework.

2) Set A Sensible Evidence Standard

You can ask for “reasonable evidence” that would satisfy a reasonable person that the leave is being taken for a permitted reason. Examples can include a funeral notice, death certificate (if appropriate), or a medical notice.

Be mindful of privacy and avoid requesting sensitive information beyond what’s necessary. If you’re unsure what’s appropriate, our guide on when employers can request medical certificates sets out practical boundaries for employers.

3) Payroll And Rostering

Configure a dedicated leave code for compassionate (bereavement) leave so you don’t accidentally debit other balances. This also helps with reporting and audit trails.

Make sure managers know how to approve ad‑hoc hours or part‑days if your policy allows it. If your system can track “per occasion” notes (e.g. reason code), that makes it easier to manage repeat entitlements properly.

4) Communication And Care

Nominate a contact person (manager or HR) and provide simple instructions for employees needing time off urgently. A supportive tone matters - for example, acknowledge time needed for funeral arrangements, travel, or cultural mourning practices.

In some cases, employees may experience grief or stress beyond the initial leave period. Encourage EAP (if you have one) and be ready to discuss flexible work or additional time off - our article on managing employee stress leave explains your obligations and options.

5) Escalation Pathways

Sometimes two days won’t be enough. If an employee asks for additional unpaid time off, make sure your process aligns with your policy on Leave Without Pay Rules. Apply decisions consistently to avoid claims of unfair treatment.

If a situation becomes complex (for example, overlap with performance or attendance issues), it’s wise to seek early advice from an Employment Lawyer.

Frequently Asked Questions For Small Businesses

Is compassionate leave the same as bereavement leave?

Yes in practice. The Fair Work Act uses “compassionate leave.” Many workplaces say “bereavement leave,” especially when referring to a death or funeral. Both terms typically refer to the same NES entitlement.

How many days is bereavement leave and who gets it?

Two days per permissible occasion for all employees (including casuals). Full‑time and part‑time employees are paid; casuals are unpaid. The entitlement applies when an immediate family or household member dies, has a life‑threatening illness or injury, or for certain pregnancy loss events recognised by the NES.

Does bereavement leave come from annual leave?

No. Compassionate/bereavement leave is a separate NES entitlement. It does not accrue and isn’t deducted from annual leave or personal/carer’s leave.

Can employees take it as hours instead of full days?

Yes, by agreement. The two days can be taken in one block, two separate days or in hours if that’s more practical for the employee and your business. Your policy should explain how to request this and who can approve it.

Can you ask for evidence?

Yes, you can request “reasonable evidence” that would satisfy a reasonable person (for instance, a funeral notice or appropriate medical evidence). Be respectful and collect only what you need. Our overview of when you can request medical certificates includes useful guardrails for employers.

What about funerals for friends or extended relatives not covered by “immediate family”?

The NES may not apply, but you’re free to approve paid or unpaid discretionary leave, or allow the employee to use annual leave by agreement. Many small businesses choose to include a compassionate “discretionary leave” clause in their policy to handle these cases fairly.

What if the funeral is later or overseas?

Compassionate leave can be taken when the employee needs to arrange or attend a funeral, even if it occurs some time after the death. If additional time is required for travel, discuss options such as extra paid discretionary leave or agreed unpaid leave.

Can compassionate leave overlap with other entitlements?

It can sit alongside other leave types. For example, if an employee is already on approved annual leave when a bereavement occurs, consider allowing them to switch the relevant days to compassionate leave (and re-credit annual leave) to meet your NES obligations and maintain goodwill.

Do public holidays affect payment?

If a public holiday falls during a period of paid compassionate leave for a full‑time or part‑time employee, the employee is paid for the public holiday according to usual rules (i.e., not as compassionate leave for that day). Payroll should record this correctly.

What if an employee is on probation?

Compassionate leave is an NES entitlement from day one, including during probation. Your onboarding pack and Employment Contract should reflect this so managers handle requests correctly from the start.

Do we need a standalone “bereavement leave” policy?

You can include it in a general leave policy or staff handbook. What matters is that it’s clear, consistent with the NES and any award/enterprise agreement, and applied fairly. If you need help drafting or refreshing your policy suite, our team can help align it with your contracts and systems.

How To Build A Clear, Compassionate Policy (And Avoid Disputes)

Small teams feel the impact of unplanned absences more than most. A well‑drafted policy makes life easier for employees and managers alike. Here’s what to cover:

• Definition: State that your business follows the NES compassionate leave entitlement (and note that it’s sometimes called bereavement leave).
• Eligibility: Define “immediate family” and “household” in line with the Fair Work Act.
• Amount and pay: Confirm two days per occasion, paid for full‑time/part‑time, unpaid for casuals.
• How leave is taken: Allow single block, separate days or hours by agreement to support flexibility.
• Evidence: Explain what counts as “reasonable evidence,” and your privacy approach.
• Extra support: Outline options if more time is needed (additional paid discretionary leave, personal/carer’s leave if relevant, or agreed unpaid leave).
• Process: Who to notify, how to request leave, and who approves.

Make sure the policy aligns with any award/enterprise agreement, and that managers are trained to apply it consistently. If you’re refreshing documents, consider updating your Workplace Policy and related templates together so they don’t conflict.

Where Compassionate Leave Interacts With Other Laws

Compassionate leave often overlaps with other legal obligations. Keep these touchpoints in mind:

• Personal/carer’s leave: If the employee is caring for a seriously ill immediate family member, personal/carer’s leave may also be relevant for ongoing support.
• Family and domestic violence leave: Separate from compassionate leave, and has its own rules. Ensure managers can spot when this entitlement may apply.
• Health and safety: Grief can affect performance and wellbeing. Be proactive about safety and reasonable adjustments. Our guide on managing employee stress leave is a useful companion for leaders.
• Evidence and privacy: Only request what you reasonably need - and store it appropriately. For medical evidence more broadly, see when you can request medical certificates.
• Unpaid time off: If more than two days are needed, follow your Leave Without Pay Rules process to avoid inconsistent decisions.

If you’re ever unsure - for example, award interactions, complex evidence questions, or a dispute - getting advice from an Employment Lawyer early usually saves time and helps you support your team lawfully and compassionately.

Key Takeaways

• Compassionate leave and bereavement leave refer to the same NES entitlement in Australia, available for deaths, life‑threatening illness or injury, and certain pregnancy loss events involving an immediate family or household member.
• Employees are entitled to 2 days per permissible occasion. Full‑time and part‑time employees are paid; casuals are unpaid. It doesn’t come out of annual leave.
• Employees can take the leave in a block, as separate days or as hours by agreement. Set this out clearly in your policy and systems.
• Reasonable evidence can be requested. Keep requests proportionate and respect privacy when collecting sensitive information.
• A clear leave policy, aligned Employment Contract terms and manager training will help you apply the rules fairly and avoid disputes.
• If more time is needed, consider discretionary paid leave, personal/carer’s leave (if relevant) or agreed unpaid leave, following your Leave Without Pay Rules process.
• When in doubt, early advice from an Employment Lawyer can help you stay compliant while supporting your team.

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