Annual Leave & Other Leave Policies in Australia

Annual Leave Entitlement

Both full-time and part-time workers across all regions in Australia are eligible for 4 weeks of annual leave for every 12 months they have worked.

• Full-time employees will receive paid leave of up to 152 hours, while part-time workers will get paid leave on a pro-rata basis – depending on the number of hours worked.

The leave will begin accumulating from the first day of employment, and employees are allowed to take leave as soon as they accumulate it. As a note, there is no expiry date to the Annual Leave, which can be carry forward unlimited, every year.

Long Service Leave (NSW)

After 10 years of continuous service with the same employer, you are entitled to 2 months (8.67 weeks) of paid long service leave, which will be paid at your ordinary gross weekly wage. This is under the Long Service Leave Act 1955 (the Act).

The Act also provides for a pro-rata entitlement after five years, if the employee resigns as a result of:

• Illness,
• Incapacity or
• Domestic or other pressing necessity.

Employees who resign citing the mentioned reasons must inform the employer in writing during the notice period.

The Act also grants a pro-rata entitlement after five years if the employer terminates the employee’s service for any reason other than serious misconduct, or in the unfortunate event of the employee’s death.

If an employee leaves before completing five years of service, they won’t be eligible for long service leave.

Special conditions may apply to those in construction, cleaning contractor employment, or based on years of service.

Sick and Carer’s Leave

In Australia, employees are given paid sick leave and carer’s leave. Both come under the same entitlement – the former is for when the employee is unable to work due to an injury, illness or even stress, while the latter is for when the employee has care for/support a family member who is unwell/facing an emergency.

Paid sick leave and carer’s leave applies to all employees except casual employees. While full-time employees get 10 days per year, this amount is pro-rated for part-time employees. As a note, there is no expiry date to the sick leave, which can be carry forward unlimited, every year.

Under the law, there is no minimum or maximum amount of sick leave/carer’s leave that can be taken at a single time. Employees, however, may be requested to provide evidence when applying for this leave.

Parental Leave

Australia doesn’t specifically have maternity leave or paternity leave. Instead, the general term ‘parental leave’ is used.

Parents who take parental leave receive payments for the duration of the leave. The rate of Parental Leave Pay usually changes on 1 July each year. The rate depends on when in the financial year you take your leave. You’ll get the rate that applies for the financial year of the day or days you are claiming for. This may mean you get different rates. The rate isn’t based on when your child was born or adopted.

The current payment for Parental Leave Pay is AU$183.16 a day before tax, or AU$915.80 per 5-day week. This is based on the weekly rate of the national minimum wage.

Parental Leave Pay for a child born or adopted as per table below:

• To be eligible, the parent must pass the income test and the work test.
• The parent cannot work during the Paid Parental Leave period, except for in certain circumstances.
• If the child is a newborn, the parent must have registered or applied to register the child’s birth state or territory birth registry.

• To be eligible, the parent must pass the income test and the work test
• The parent cannot work during the Paid Parental Leave period, except for in certain circumstances
• If the child is a newborn, the parent must have registered or applied to register the child’s birth the state or territory birth registry

Accrual and Usage of Leave

Annual leave accrues progressively throughout the year and can be taken as it accrues. Key points include:

• Accrual Rate: Employees accrue leave based on their ordinary hours of work.
• Cashing Out: Employees can cash out annual leave if permitted by their award or agreement, but must retain at least 4 weeks of leave.

Notice and Approval

Employees must provide reasonable notice when requesting annual leave. Employers can refuse leave requests if it would adversely affect the business, but must provide valid reasons.

2026 Public Holidays

There are 8 statutory holidays that apply to all regions in Australia each year.

• Australian Capital Territory

• New South Wales

• Northern Territory

• Queensland

• South Australia

• Tasmania

• Victoria

• Western Australia

Best Practices for Employers

To effectively manage annual leave, employers should:

• Clear Policies: Establish clear policies on leave accrual, usage, and approval processes.
• Leave Planning: Encourage employees to plan their leave in advance to ensure adequate staffing levels.
• Record-Keeping: Maintain accurate records of leave accrual and usage to ensure compliance with legal requirements.

Employee Rights

Employees have the right to take annual leave and should not be discouraged from taking it. Employers must ensure that leave policies comply with the Fair Work Act 2009 and relevant awards and agreements.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Australia employment laws and regulations, please visit the official governmental websites.

Updated on: June 2026