Alex is Sprintlaw’s co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
Running a small business means you’re constantly balancing operational needs with your legal obligations as an employer. One area that can get confusing quickly is employee leave.
In Australia, there are several different types of leave from work, and the rules can change depending on whether your team member is full-time, part-time or casual, plus what applies under the National Employment Standards (NES), a modern award, or an enterprise agreement.
This guide breaks down the main types of leave from work in a practical, employer-focused way - including what each leave type is, who is eligible, what you need to pay, and the common compliance traps to avoid.
Important note: This is general information only. Your exact obligations can depend on the employee’s contract, award coverage and state/territory laws (especially for things like long service leave).
Before You Start: What Actually Determines Leave Entitlements?
When you’re working out which types of work leave apply, start with the “layer cake” of employment rules:
- National Employment Standards (NES): the baseline minimum entitlements for most employees in Australia.
- Modern award or enterprise agreement: may add extra leave, change notice requirements, or include special rules (for example, for shift workers).
- Employment contract: can provide additional benefits (for example, extra paid leave), but generally can’t undercut NES minimums.
- Workplace policies: how you operationalise leave (approval process, evidence rules, record keeping). Policies should align with the above layers.
Also, eligibility depends heavily on employment status:
- Full-time and part-time employees: generally receive paid annual leave and paid personal/carer’s leave (pro-rated for part-time).
- Casual employees: generally don’t get paid annual leave or paid personal leave, but may be entitled to unpaid versions of some leave types (and still have access to family and domestic violence leave).
As a practical tip: if you’re ever unsure, treat it as a two-step exercise - (1) identify the employee’s category (full-time/part-time/casual), then (2) confirm which industrial instrument applies (award/enterprise agreement/contract).
Paid Leave Types (The Ones You’ll Most Often Manage Day-To-Day)
Most small business leave questions involve paid leave. These are the leave types that directly impact payroll and rostering, so having a clear approval and evidence process can save you a lot of stress later.
Annual Leave
What it is: paid time off for rest and recreation.
Who gets it: full-time and part-time employees (not casuals), under the NES. Part-time employees accrue annual leave on a pro-rata basis.
How much: generally 4 weeks per year (with some shift workers potentially entitled to more under an award/enterprise agreement).
Employer practicalities:
- Leave requests and approval: employees and employers should agree on when annual leave is taken. You can refuse a request, but only on reasonable business grounds (for example, peak periods, insufficient staffing) and you shouldn’t unreasonably refuse. It’s important that you can explain your reasoning and apply it consistently.
- Direction to take leave: in some situations you may be able to direct an employee to take leave (for example, during a shutdown or where an employee has an excessive leave balance), but the rules can be technical and often award- or agreement-dependent.
- Pay rules: annual leave is generally paid at the employee’s base rate of pay, but awards may require extra amounts (such as leave loading). For a deeper payroll-focused explanation, annual leave payments can be a useful reference point.
Common trap: treating annual leave as “use it or lose it” without checking the rules. Leave can accumulate, and there are strict requirements around cashing out and directing leave.
If you’re considering cashing out, make sure you understand the conditions and documentation required for cashing out annual leave.
Personal/Carer’s Leave (Including Sick Leave)
What it is: paid leave that can be used when an employee is unfit for work due to personal illness/injury (sick leave) or to care for an immediate family or household member who needs care/support (carer’s leave).
Who gets it: full-time and part-time employees. Casual employees generally don’t get paid personal/carer’s leave, but may be entitled to unpaid carer’s leave.
How much: under the NES, generally 10 days per year for full-time employees, accruing progressively. Part-time employees receive a pro-rata entitlement based on their ordinary hours.
Evidence rules: you can require evidence that would satisfy a reasonable person. This might include a medical certificate or statutory declaration, depending on the circumstance and your policy/award requirements.
In real life, employers often ask: “Can an employee take sick leave without a certificate?” The answer depends on your policy and what’s reasonable in the circumstances - and it’s worth having a clear process for this. sick days without a certificate is a common area where businesses benefit from having consistent expectations.
Common trap: refusing personal/carer’s leave because it’s inconvenient. If the employee gives you notice as soon as practicable and provides evidence that would satisfy a reasonable person (if you’ve requested it), they’re generally entitled to take that leave. If notice/evidence requirements aren’t met, you should be careful and get advice before treating the absence as unauthorised.
Compassionate Leave
What it is: leave when an employee’s immediate family or household member dies, or develops a life-threatening illness or injury.
Who gets it: full-time, part-time, and casual employees.
How much: generally 2 days per permissible occasion. Full-time and part-time employees are usually paid; casual employees generally take this leave unpaid.
Employer practicalities:
- Have a process that is sensitive and fast. This is not an area where delays or overly rigid admin tends to go down well.
- You can request evidence if it’s reasonable, but in practice you’ll want to balance compliance with compassion.
Family And Domestic Violence Leave
What it is: leave to deal with the impact of family and domestic violence, such as attending court, making arrangements for safety, or accessing support services.
Who gets it: all employees, including casual employees.
How much: under the NES, employees are entitled to 10 days of paid family and domestic violence leave each year (it does not accumulate from year to year). This entitlement operates differently from leave like annual leave (for example, it’s available upfront rather than accruing progressively), so it’s worth checking the current Fair Work guidance when setting payroll and policy settings.
Employer practicalities:
- Confidentiality is critical: limit access to information on a need-to-know basis.
- Train managers: front-line leaders should know how to respond appropriately and where to escalate sensitive issues.
Parental Leave And Related Leave (Planning Matters Here)
Parental leave is one of the types of leave from work where small businesses can get caught out - not because it’s “hard”, but because it involves notice requirements, long timeframes, and operational planning.
Unpaid Parental Leave
What it is: job-protected unpaid leave for employees who are giving birth, adopting, or otherwise becoming a parent (including partners in many situations).
Who gets it: eligible employees who have completed at least 12 months of continuous service with you before the expected date of birth/adoption. Some long-term casuals may also be eligible if they meet strict criteria.
How much: generally up to 12 months unpaid parental leave, with an option to request an extension in some circumstances (subject to the legal rules and your ability to reasonably refuse).
Employer practicalities:
- Plan early: use the notice period to plan replacement staffing, training, and handover.
- Keep in touch: employees on parental leave still have rights and protections, and your communications should be respectful and consistent.
- Return-to-work: there are rules about returning to the same position (or an available, suitable alternative in some cases).
Special Maternity Leave And Pregnancy-Related Issues
Depending on the situation, there may be additional leave types or protections tied to pregnancy-related illness or where the pregnancy ends in certain circumstances.
If you’re managing a return-to-work process following illness or injury (including pregnancy-related health issues), it’s worth understanding when you can request clearance. For practical guidance, the topic of medical clearance to return to work is especially relevant for employers trying to balance safety obligations with privacy and fairness.
Common trap: treating parental leave like a “standard resignation/termination” event. It isn’t. There are specific protections, and decisions around role changes or redundancy during parental leave can be legally sensitive.
Other NES Leave Types Employers Often Forget (But Still Need To Get Right)
Beyond the “big” leave categories, there are several different types of leave in Australia that can pop up unexpectedly - and having a policy in place can help your managers respond consistently.
Community Service Leave (Including Jury Duty)
What it is: leave for employees who engage in eligible community service activities, such as jury duty or certain emergency management activities.
Who gets it: generally all employees, including casuals, for eligible activities.
Pay: community service leave itself is generally unpaid. However, for jury service, full-time and part-time employees are entitled under the NES to “make-up pay” for up to the first 10 days of jury attendance. This generally means you pay the difference between the employee’s base pay for their ordinary hours they would have worked and what they receive for jury service (excluding any reimbursement for travel or meals). Casual employees generally aren’t entitled to this paid component.
Employer practicalities:
- Ask for evidence (for example, a jury summons and confirmation of attendance/payment).
- Plan for short-notice absences, especially if your business relies on key individuals.
Long Service Leave (State/Territory Based)
What it is: a long-term service entitlement that builds up over many years.
Who gets it: eligibility, accrual, and payout rules depend on the state or territory, and sometimes the industrial instrument.
Employer practicalities:
- Don’t assume it’s “nationally consistent”: long service leave is not a simple NES entitlement, and rules can vary significantly.
- Track service carefully: especially for long-term staff, business sales, or restructures where service may transfer.
Public Holidays (Not Exactly “Leave”, But It Affects Time Off)
Public holidays aren’t always called a “leave type”, but in practice they function like one because they affect employee availability, rostering, and pay obligations.
Employer practicalities:
- Check the relevant state/territory public holiday calendar (they differ).
- Confirm whether the employee would normally work that day and what applies under the award/enterprise agreement.
- Be cautious about unpaid time around public holidays. Issues often arise where an employee is on unpaid leave or stood down near a public holiday - the rules can be nuanced. unpaid leave and public holidays is a common pain point for employers.
Common trap: assuming you can simply roster staff off without considering minimum engagement, penalty rates, and “reasonable refusal” rules (depending on the scenario and industrial instrument).
Unpaid Leave Types And “Special Situations” (Where Process Really Matters)
Some types of leave from work are unpaid by default, or become unpaid once paid entitlements are exhausted. These are the scenarios where having a clear paper trail and a fair process matters most.
Unpaid Carer’s Leave (Often Relevant For Casuals)
Even though casual employees generally don’t get paid personal/carer’s leave, they can often access unpaid carer’s leave in certain circumstances.
From a business perspective, the key is to treat the request consistently, request reasonable evidence if needed, and keep records of what was agreed (dates, reason category, and whether it was approved).
Leave Without Pay (LWOP)
What it is: discretionary unpaid leave that you may choose to approve (unless a specific entitlement applies under the NES, award, enterprise agreement or contract).
Employer practicalities:
- Be consistent: inconsistent approvals can create employee relations issues or discrimination risks.
- Document the agreement: confirm in writing the dates, whether paid leave entitlements will accrue during the period (they usually won’t if no ordinary hours are worked), and any conditions.
- Consider knock-on effects: unpaid leave can affect accrual of annual leave and personal leave, plus payroll and super considerations depending on the payments made. Some types of authorised unpaid leave may still count as “service” for certain purposes, so it’s worth checking the specific leave type and instrument.
Redundancy, Notice Periods, And “Time Off” On Exit
Strictly speaking, redundancy isn’t a leave type - but it often triggers questions about time off, final pay, and notice. Employees may also take personal leave during a notice period or request to use annual leave to shorten their time at work.
Two employer issues commonly come up here:
- Calculating what’s payable: redundancy pay and final entitlements can be tricky, especially when awards and enterprise agreements apply. A tool like a redundancy calculator can help you estimate, but you should still confirm the correct legal position for your specific circumstances.
- Payment in lieu of notice: if you decide not to have the employee work out their notice period, there are rules about what you must pay. payment in lieu of notice is a common topic employers need to get right to avoid underpayment issues.
Common trap: treating exit arrangements as informal. If you’re allowing annual leave during notice, directing leave, or paying out notice, it’s worth ensuring the documentation matches what actually happens.
Key Takeaways For Employers Managing Different Types Of Leave
- Start with the hierarchy: NES sets the baseline, but awards, enterprise agreements, and contracts can add extra leave types or extra rules you must follow.
- Employment status matters: when you’re dealing with leave for full-time employees versus casual staff, the biggest differences are typically around paid annual leave and paid personal/carer’s leave.
- Annual leave and sick leave cause the most payroll issues: clear evidence requirements, consistent approvals, and accurate pay calculations help prevent disputes and underpayments.
- Parental leave is as much operational as it is legal: planning early, documenting arrangements, and managing return-to-work properly protects both your business and your employee.
- Don’t forget the “less frequent” leave types: compassionate leave, family and domestic violence leave, community service leave and long service leave still carry obligations and should be covered in your policies.
- When in doubt, document it: many leave issues become messy because expectations weren’t confirmed in writing or weren’t applied consistently across staff.
If you’d like help reviewing your leave clauses, workplace policies, or employment documentation so you can confidently manage all types of leave from work, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.








