Managing Leave Of Absence Requests: Employer’s Legal Obligations In Australia

If you run a business in Australia, you’ll almost certainly manage employee leave. From annual leave to personal/carer’s leave, long service leave, community service leave, parental leave and more, time off is a normal part of working life.

Supporting your team is important - and so is staying compliant. Getting leave management wrong can lead to accidental breaches of the Fair Work laws, payroll issues or avoidable disputes.

In this guide, we’ll break down what a “leave of absence” covers, your key obligations under the National Employment Standards (NES) and modern awards, practical steps for handling requests, and when you can direct leave or refuse a request. Our goal is to help you protect your business while supporting your people.

What Counts As A Leave Of Absence In Australia?

A leave of absence is any period when an employee is authorised to be away from work. Some leave types are minimum entitlements under the NES and modern awards, while others are provided at your discretion under your workplace policies or contracts.

Common leave types include:

• Annual Leave: Paid leave that full-time and part-time employees accrue for rest and recreation (pro rata for part-time). Shiftworkers may be entitled to 5 weeks.
• Personal/Carer’s Leave: Paid leave for full-time and part-time employees when they’re unwell or caring for an immediate family/household member who’s sick or has an unexpected emergency. Casuals get unpaid carer’s leave.
• Compassionate (Bereavement) Leave: Two days per permissible occasion (paid for full-time and part-time, unpaid for casuals) if an immediate family/household member dies or suffers a life-threatening illness/injury.
• Family And Domestic Violence Leave: 10 days of paid leave in each 12-month period for all employees (including eligible casuals) in the national system. This is available up-front, doesn’t accrue and renews annually.
• Parental Leave: Up to 12 months of unpaid leave for eligible employees, with a right to request a further 12 months. Government Parental Leave Pay may apply separately to employer obligations.
• Community Service Leave: Includes jury service and certain emergency management activities. Jury service involves paid make-up pay under the NES.
• Long Service Leave: Entitlement after a long period of continuous service, with rules set by state/territory legislation and any applicable award or agreement.
• Unpaid Leave: Discretionary leave not otherwise provided by law, or unpaid components of certain leave types. Whether you can require or approve unpaid leave depends on the NES, awards/agreements and your policies.

Some employers also offer extra leave (for example, study leave or volunteer leave). Whatever you offer, clear, consistent processes are essential.

Employer Obligations Under The NES And Awards

Most Australian employers are covered by the national workplace relations system. Your baseline obligations sit in the NES under the Fair Work Act, and many workplaces also have a modern award or enterprise agreement with additional rules.

Your core obligations include:

• Provide minimum entitlements: Employees must receive at least the leave the NES provides (and anything higher in the relevant award/agreement).
• Process requests fairly: You generally cannot unreasonably refuse a request to take accrued annual leave, though you can discuss timing based on operational needs.
• Keep proper records: Maintain accurate leave balances, accruals, approvals and evidence. This underpins compliant payroll and helps prevent disputes.
• Communicate entitlements clearly: Set out leave rules and processes in each Employment Contract and your workplace policies, and make them easily accessible to staff.
• Apply any award/agreement correctly: Awards often include special rules (for example, shutdowns, excessive leave or rostering) that sit on top of the NES.

Breaches can lead to penalties and claims. If you’re unsure how the NES interacts with an award in your industry, it’s wise to get advice from an employment law specialist.

The Main Leave Types And How To Handle Them

Annual Leave

Full-time employees receive a minimum of four weeks of paid annual leave per year (pro rata for part-time), accruing progressively. Shiftworkers under certain awards may receive five weeks.

Employees can request to take accrued annual leave. You can discuss timing to balance business needs, but you should not unreasonably refuse. Some awards include “excessive leave” rules or allow directions to take annual leave after consultation.

Public holidays that fall during annual leave are not deducted from the leave balance. You may also allow (or be required by an award to allow) cashing out annual leave if strict conditions are met.

On termination, accrued but untaken annual leave must be paid out, usually at the employee’s base rate (check any award loading rules).

Personal/Carer’s Leave

Full-time employees receive 10 days of paid personal/carer’s leave per year (pro rata for part-time), accruing progressively and carrying over year to year. This covers both the employee’s illness/injury and caring responsibilities for immediate family/household members in certain situations.

Casuals are entitled to two days of unpaid carer’s leave per permissible occasion.

You can require reasonable evidence - for example, a medical certificate - where it’s reasonable in the circumstances. See when employers can ask for medical certificates.

Compassionate (Bereavement) Leave

Two days per permissible occasion is available when a member of the employee’s immediate family or household dies or suffers a life-threatening illness or injury. This is paid for full-time and part-time employees and unpaid for casuals. Evidence can be requested if reasonable.

Family And Domestic Violence Leave

Employees in the national workplace relations system are entitled to 10 days of paid family and domestic violence leave in each 12-month period. It’s available in full at the start of each year of employment, doesn’t accrue, and is confidential. This leave is separate from personal/carer’s leave and has specific payslip and privacy handling requirements.

Parental Leave

Eligible employees (generally with at least 12 months’ continuous service) can take up to 12 months of unpaid parental leave, with a right to request a further 12 months. Keep in touch days, transfer to a safe job and other related rights may apply.

Any paid parental leave provided by the government’s scheme is separate from your legal obligations (unless you have an employer-funded paid leave policy).

Community Service Leave

Community service leave includes jury service and certain emergency activities. Jury service involves an entitlement to make-up pay for a defined period under the NES. Employees should provide evidence of service and any jury payments received.

Long Service Leave

Long service leave is governed by state and territory legislation (and some pre-modern awards), so the accrual rate and when it can be taken vary by location. Unused long service leave may be payable on termination in many cases. Always check the rules that apply where your employees ordinarily work.

Unpaid Leave

Unpaid leave can be part of a statutory entitlement (for example, portions of parental or carer’s leave) or discretionary if you agree to it. As a rule of thumb, periods of unpaid leave may not count as service for accrual purposes unless the law or an award says otherwise. For an overview, see understanding unpaid leave.

Practical Steps To Manage Leave Requests

The law sets the minimum framework. Your day-to-day processes make leave management smooth, fair and defensible.

1) Set Clear Rules In Writing

Document your approach in each employee’s Employment Contract and a plain-English workplace policy. Many businesses bring it all together in a Staff Handbook so managers and staff have one source of truth.

Cover how to apply, notice requirements for planned leave, how evidence is handled, who approves leave, and how conflicts (for example, competing requests) are resolved.

2) Use Written Requests And Consistent Workflows

Ask staff to submit leave requests in writing (email or HR system). This creates a clear record and reduces misunderstandings.

Apply the same process for everyone. Consistency helps you avoid discrimination risks and “different rules for different people” perceptions.

3) Ask For “Reasonable Evidence” Where Appropriate

For personal/carer’s or compassionate leave, you can request evidence that would satisfy a reasonable person. A short, standard approach avoids disputes and respects privacy. For guidance on evidence expectations, see requesting medical certificates.

4) Balance Business Needs With Employee Entitlements

It’s okay to talk about timing if a request clashes with a critical period. Keep the conversation collaborative, explain your reasons and document any agreed changes.

5) Keep Accurate Records

Track accruals, approvals/declines, evidence received and balances. Good records make payroll easier, support compliance and help resolve issues quickly.

6) Treat Sensitive Information Carefully

Medical certificates and family and domestic violence leave details are sensitive. Store them securely and limit access. Publishing how you handle employee data in your Privacy Policy builds trust and supports compliance with privacy laws.

Directing Leave, Refusing Requests And Shutdowns

Sometimes you may need to lead the process - for example, to manage excessive leave accruals or a seasonal shutdown. The key is to follow the rules that apply to your workplace.

Can You Direct An Employee To Take Annual Leave?

Possibly - in limited circumstances. Many modern awards set out when you can direct an employee with excessive accrued leave to take some of it, and how much notice you must give. Some awards also allow directing annual leave during a “close-down” or shutdown period (such as over Christmas) after proper consultation.

Outside of award rules, direction to take leave must be reasonable and consistent with the contract and company policies. Always check any applicable award/enterprise agreement first.

What About Unpaid Leave During A Shutdown?

As a general rule, you can’t force employees to take unpaid leave. If a shutdown applies, awards may allow you to direct employees to use accrued annual leave. If an employee has insufficient accrual, options include working alternative duties, agreeing to unpaid leave, or other arrangements permitted by the award/agreement. Avoid “negative balances” unless the award permits it; see practical guidance on managing negative leave balances where relevant.

When Can You Refuse A Leave Request?

Refusal needs a lawful basis. For accrued annual leave, the test is whether refusal is “unreasonable” in the circumstances. Legitimate operational needs, clashes with other approved leave or peak trading periods can justify proposing alternative dates.

Be careful not to refuse leave that is a clear legal entitlement (for example, parental leave or family and domestic violence leave) unless a narrow exception applies. Always consult the NES and any award/agreement.

Do You Have To Pay During Leave?

• Paid leave types: Annual leave, personal/carer’s leave (for full-time and part-time), compassionate leave (FT/PT), paid family and domestic violence leave and public holidays are paid, typically at base rate (check your award for any loadings or specific rules).
• Unpaid leave: Unpaid components (for example, unpaid parental leave) are not paid while the employee is away. Be mindful of how unpaid leave affects service and accruals.
• Public holidays: If a public holiday falls during paid leave, it isn’t deducted from the employee’s leave balance.

For annual leave payout rules and pay-rate nuances, many employers review their processes alongside guidance on annual leave payments.

What If There’s A Dispute?

Start by referring to the contract, your leave policy and any applicable award clause. Meet with the employee, explain your decision and explore options (for example, alternative dates or partial approval).

If you still can’t resolve it, consider a fresh review of entitlements under the NES/award and seek early legal advice so issues don’t escalate.

Key Takeaways

• Leave of absence is governed by the NES and awards, and includes annual leave, personal/carer’s leave, compassionate leave, paid family and domestic violence leave, parental leave, community service leave and long service leave.
• You must provide minimum entitlements, process requests fairly, keep accurate records and apply any award or agreement correctly - inconsistency is a common trigger for disputes.
• Put your approach in writing: each Employment Contract, a clear workplace policy and a practical Staff Handbook help managers make consistent, lawful decisions.
• You can sometimes direct annual leave (for example, excessive accruals or shutdowns) if the award or agreement allows and consultation occurs; you generally cannot force unpaid leave.
• Request “reasonable evidence” for personal/carer’s and compassionate leave where appropriate, store sensitive information securely and make sure your Privacy Policy covers how employee data is handled.
• For discretionary time off and long absences, align decisions with the NES/award and your policies - and consider the practical impacts outlined in unpaid leave guidance.

If you’d like a consultation on your policies and processes for managing leave of absence requests, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.