Leave Policy in Australia 2025: Employer & Employee Guide

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Australia, with its highly skilled workforce, robust service sector, and strong trade links in the Asia-Pacific region, is a top destination for global employers. Hiring in Australia requires companies to comply with the Fair Work Act 2009 and the National Employment Standards (NES), which establish clear rules for employee leave entitlements.

The leave policy in Australia covers annual paid leave, parental leave, maternity and paternity entitlements, sick and carer’s leave, public holidays, and other special leave provisions. Managing leaves in Australia effectively is essential for employers to implement these standards accurately, maintain compliance, and safeguard employee well-being.

This guide breaks down the key leave entitlements in Australia for 2025.

Table of Contents

Adoption Leave in Australia

Adoption leave in Australia is designed to support adoptive parents by giving them time to bond with their child and adjust to family responsibilities. It is regulated under the Fair Work Act 2009 and the National Employment Standards (NES).

  • Duration: Each eligible adoptive parent is entitled to up to 12 months of unpaid adoption leave, with the option to request an additional 12 months. This entitlement is not transferable, ensuring both parents have equal rights.
  • Special cases: Adoption leave applies when the adopted child is under 16 years of age and not the child or stepchild of the employee’s partner.
  • Multiple adoptions: When adopting more than one child simultaneously, the entitlement remains at 12 months per adoption event, though extensions may be granted upon request.

Employers are obligated to grant this leave without discrimination. Employees must provide official adoption documentation and notify their employers at least 10 weeks in advance. This ensures proper administrative processes such as leave approval and payroll adjustments are handled correctly.

Earned Leave (Annual Paid Leave) in Australia

Annual leave in Australia is a statutory entitlement under the NES.

  • Full-time employees receive 4 weeks (20 working days) of paid annual leave per year of service.
  • Shift workers in certain industries are entitled to 5 weeks.
  • Leave accrues progressively and can carry over if unused.
  • Employers must calculate and pay leave loading (usually 17.5%) where required by awards or agreements.

Accurate Payroll processing ensures correct accruals and payments.

Suggested Read: Employer of Record Australia: A Comprehensive Guide 2025

Maternity Leave in Australia

Maternity leave falls under the broader category of parental leave.

FeatureDetails
DurationUp to 12 months of unpaid leave
PaymentEligible employees can receive up to 20 weeks of Parental Leave Pay funded by the government, at the national minimum wage
Notice requirementWritten notice at least 10 weeks before leave
Job protectionEmployers must hold the employee’s position during leave

Parental Leave in Australia

Parental leave is available to both parents.

Type of LeaveDurationDetails
Unpaid parental leaveUp to 12 months (with right to request an extra 12 months)For both parents, shared entitlement
Dad and Partner Pay2 weeksGovernment-funded pay at the national minimum wage

Parents may also access flexible paid parental leave, depending on eligibility.

Paternity Leave in Australia

Australia does not have a separate paternity leave category — instead, fathers and partners access Dad and Partner Pay and parental leave entitlements.

  • Duration: 2 weeks of government-funded pay at the minimum wage.
  • Additional entitlements: Partners can share unpaid parental leave of up to 12 months.

Public Holidays in Australia

Australia recognizes national and state/territory public holidays. Employees are entitled to a paid day off on a public holiday if it falls on a normal working day.

National public holidays include:

  • New Year’s Day (1 January)
  • Australia Day (26 January)
  • Good Friday and Easter Monday
  • ANZAC Day (25 April)
  • Christmas Day (25 December)
  • Boxing Day (26 December)

States and territories also observe additional regional holidays (e.g., Labour Day, Queen’s Birthday).

Sick Leave Policy in Australia

Sick leave is referred to as Personal/Carer’s Leave under the NES.

CategoryEntitlement
Full-time employees10 days of paid personal/carer’s leave per year
Part-time employeesPro-rata entitlement
AccrualLeave accumulates year to year if unused
Extended sick leaveUnpaid leave may apply when entitlements are exhausted

Employees must provide medical certificates if requested.

Casual Leave in Australia

Casual leave in Australia is not a statutory entitlement under the Fair Work Act, as casual employees do not receive paid annual or sick leave. However, they are compensated through a casual loading (usually 25% higher pay). Casual employees may still access limited unpaid leave in specific situations, such as:

  • Unpaid carer’s leave (2 days per occasion)
  • Unpaid compassionate leave (2 days per occasion)
  • Unpaid community service leave (for jury duty or emergency management activities)

Employers are required to grant these entitlements when valid circumstances arise, ensuring casual employees maintain essential protections despite lacking paid leave benefits.

Unpaid Leave in Australia

Employees may take unpaid leave in certain circumstances:

  • Parental/adoption leave: Up to 12 months (extendable to 24).
  • Compassionate leave: 2 days per occasion (paid for full-time/part-time, unpaid for casuals).
  • Community service leave: For jury duty or emergency management activities.

Other Special Leave Types in Australia

  • Compassionate and bereavement leave: 2 days (paid for permanent employees).
  • Long service leave: Granted after 7–10 years of continuous service, varying by state.
  • Community service leave: Paid for jury service (with top-ups depending on jurisdiction).

Suggested Read: Understanding Labour Laws in Australia: A 2025 Guide

Digital Leave Management in Australia with Asanify AI

Managing leave in Australia can be complex due to NES entitlements, state-specific public holidays, and award or enterprise agreement variations. Manual processes often lead to payroll disputes and compliance risks.

Asanify AI simplifies leave management in Australia by:

  • Offering real-time visibility of leave balances.
  • Providing Slack and mobile-based approvals to streamline workflows.
  • Automating Payroll processing for annual leave loading, parental leave, and public holiday entitlements.
  • Generating audit-ready reports aligned with the Fair Work Act and NES.
  • Supporting Global Contractor Management, allowing employers to handle employees and contractors under one platform.

With Asanify, employers hiring in Australia can stay compliant while delivering a seamless employee experience. For global companies looking to hire employees in Australia, this is especially valuable as it ensures both compliance and efficiency. Startups and SMEs expanding into the Australian market can also benefit from Asanify’s expertise in Employer of Record Services Australia, making the process of managing teams simpler and more transparent.

FAQs

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.