Australian law sets the minimum leave every employee gets. These rules are called the National Employment Standards (NES). A contract can give more, never less.
- A full-time employee gets 4 weeks of paid holiday and 10 days of paid sick and carer's leave each year. Part-time staff get the same, based on the hours they work.
- Casual workers don't get paid holiday or sick leave. They get 25% extra pay instead. They still get 10 days of paid family and domestic violence leave from day one.
- For a child born or adopted on or after 1 July 2026, the government pays up to 26 weeks of parental leave pay. It also pays super on top.
- Long service leave depends on the state. Employees qualify after 7 or 10 years with the same employer.
Why Australian Leave Law Demands Attention Before You Hire
Australia has strict leave laws. The main law is the Fair Work Act 2009. It sets the National Employment Standards (NES), which are the minimum rights almost every employee has.
Many roles are also covered by an award. An award is a set of pay and leave rules for a certain industry or job. Some workplaces have an enterprise agreement instead, which is a deal made between an employer and its staff. Awards and agreements can give more leave than the NES, but never less.
Long service leave is different again. Each state has its own law for it.
So one hire in Sydney or Melbourne can bring rules from three or four places at once. This guide explains each type of leave, how it's paid, and the mistakes companies from outside Australia make most often.
Talk through your hiring questions with the Gloroots team.
Annual Leave
How it builds up
A full-time employee gets 4 weeks of paid annual leave each year. Part-time staff get the same, based on the hours they work. Some shift workers get 5 weeks, depending on their award or agreement. Casual workers don't get annual leave.
Leave builds up a little with every hour worked. After 6 months, a full-time employee has about 2 weeks saved.
Unused leave never runs out. It rolls into the next year and keeps growing. You owe that time, or that money, until the employee uses it or leaves.
Leave loading
Many awards add 17.5% extra pay while the employee is on annual leave. This is called leave loading. Not every award has it, so check the award for each job you hire into. Companies from outside Australia often forget to include it when they work out what a hire will cost.
Telling staff to take leave
You can tell an employee to take annual leave in two cases:
- they have saved up too much leave, or
- your business closes for a period, such as over Christmas.
You have to follow the rules in their award or agreement. If they aren't covered by an award, the request must be reasonable. In any other case, you can't unfairly say no when an employee asks to take their leave.
Swapping leave for cash
An employee can agree to trade some annual leave for money. All of these must be true:
- Their award or agreement allows it, or they aren't covered by one.
- Each swap is agreed in writing, one at a time.
- They still have at least 4 weeks of leave left afterwards.
- They're paid at least what they would have got for taking the leave.
You can't force an employee to swap leave for cash.
When someone leaves
When a job ends, you must pay the employee for all their unused annual leave. If their award includes leave loading when employment ends, you pay that too. This applies whether they quit or you end their job. A contract can't remove this rule.
Sick, Carer's, Compassionate, and Family Violence Leave
Sick and carer's leave
A full-time employee gets 10 days of paid sick and carer's leave each year. Part-time staff get the same, based on the hours they work. It builds up over time, and unused days roll into the next year.
Staff can use it:
- when they're sick or hurt, or
- to look after a family or household member who is sick, hurt, or facing a sudden emergency.
You can ask for proof, like a doctor's note. Casual workers don't get paid sick leave.
Unpaid carer's leave
Every employee, casuals included, gets 2 days of unpaid carer's leave each time they need it. Permanent staff can only use it once their paid sick and carer's leave has run out.
Compassionate leave
Every employee gets 2 days of compassionate leave each time one of these happens:
- A family or household member dies.
- A family or household member has an illness or injury that could kill them.
- A baby in the family is stillborn.
- The employee or their partner has a miscarriage.
It's paid for permanent staff and unpaid for casuals. There's no waiting period, so it applies from the first day.
Family and domestic violence leave
Every employee gets 10 days of paid family and domestic violence (FDV) leave each year. That includes full-time, part-time and casual staff. The rule started in 2023.
It works differently from other leave:
- Available right away: The full 10 days are there from the first day of work.
- Resets every year: The 10 days renew on the employee's work anniversary. Unused days don't roll over.
- Pay for casuals: Casuals are paid for the hours they were rostered to work.
Staff can use this leave to:
- move house or make themselves safe
- go to court or the police
- get medical, money, or legal help
Payslip rules: A payslip must not mention FDV leave. That covers leave taken and any leave balance. You have to show the payment as normal hours worked, or as another kind of pay such as an allowance. If the employee asks, you can show it as a different type of leave, such as annual leave.
Keep anything you know about this leave private. Older contracts that leave casuals out of FDV leave, or treat it as leave that builds up, don't meet the law today.
Parental Leave
Unpaid parental leave (NES)
An employee who has worked for you for 12 months can take up to 12 months of unpaid parental leave. Long-term casuals can too, if they've worked regular hours for 12 months and expected that to continue.
They can ask for 12 more months. If they do:
- You must answer in writing within 21 days.
- Before you say no, you must talk it through and try to agree.
- You can only say no for good business reasons.
- If you can't agree, the Fair Work Commission can help settle it.
Staff can also take some of their 12 months in separate days or blocks, any time before the child turns 2. They can take up to 130 days this way for a child born or adopted on or after 1 July 2026. For a child born or adopted between 1 July 2025 and 30 June 2026, the limit is 120 days.
When they come back, they get their old job. If that job no longer exists, you must offer the closest job you have in level and pay.
Government Paid Parental Leave (PPL)
PPL is separate from the unpaid leave above. The government pays for it, not the employer.
- For a child born or adopted on or after 1 July 2026, a family can get up to 26 weeks (130 days).
- It's paid at the national minimum wage.
- If the parent has a partner, 20 of those days are kept for the partner. If the partner doesn't use them, they're lost.
Services Australia runs PPL. In many cases, though, the employer passes the money on to the employee through payroll. This usually applies when the employee has worked for you for 12 months before the birth or adoption. Services Australia will tell you in writing if you need to do this.
Super on PPL
For a child born or adopted on or after 1 July 2025, the government adds 12% super to PPL. The ATO pays it straight into the employee's super fund once a year. You don't pay this super. You do still pay normal super on any parental leave pay your company gives on top.
Long Service Leave
Long service leave is extra paid leave for staying with one employer for a long time. The NES doesn't set it. Each state and territory has its own law, and the employee's work location decides which one applies.
State or TerritoryQualifies AfterLeaveNew South Wales10 yearsAbout 8.67 weeksVictoria7 yearsAbout 6.07 weeksQueensland10 yearsAbout 8.67 weeksWestern Australia10 yearsAbout 8.67 weeksSouth Australia10 years13 weeksTasmania10 yearsAbout 8.67 weeksAustralian Capital Territory7 yearsAbout 6.07 weeksNorthern Territory10 years13 weeks
States also have different rules on:
- whether staff get part of it paid out if they leave before they qualify
- how casual work counts
- whether the leave can be cashed out
Some industries, such as building, cleaning and community services, have shared schemes. In these, the leave moves with the worker from one employer to the next. Employers may need to pay into the scheme from day one.
If you have staff in more than one state, follow each state's rules for each person. Using one rule for everyone is a common and costly mistake.
Public Holidays and Community Service Leave
Public holidays
Australia has 8 national public holidays:
- New Year's Day
- Australia Day
- Good Friday
- Easter Monday
- Anzac Day
- King's Birthday
- Christmas Day
- Boxing Day
Each state adds its own days, such as Labour Day or Melbourne Cup Day in parts of Victoria. The King's Birthday falls on a different date in Queensland and Western Australia than in the other states. Keep a public holiday calendar for each state where you have staff.
Pay: Staff get the day off. If it falls on a day they'd normally work, they're paid as usual. Casuals only get paid if they're rostered on and work that day.
Working on a public holiday: You can ask staff to work if it's reasonable. They can say no if it isn't, or if they have a good reason. Staff who work usually get extra pay or another day off, depending on their award or agreement.
Community service leave
All employees, casuals included, can take leave for jury duty or for volunteer emergency work, like with a state emergency service or a fire brigade. There's no set limit. The leave covers the work itself plus time to travel and rest.
This leave is unpaid, with one exception. For jury duty, full-time and part-time staff get topped up to their normal pay for the first 10 days. You pay the difference between their normal pay and what the court pays them. Casuals can take jury duty leave, but it's unpaid.
Casual vs Permanent Staff
Since 26 August 2024, the law looks at how someone really works, not just what their contract says. If a "casual" works regular, steady hours, they may count as permanent. Getting this wrong can mean paying back leave across many types at once.
What Happens If You Get It Wrong
The Fair Work Ombudsman checks for underpayments and can take employers to court. Since 1 January 2025, underpaying staff on purpose can also be a crime. Honest mistakes don't count as a crime, but they still have to be paid back.
Small leave mistakes also grow over time. A wrong leave rate or a missing leave loading can add up to a big bill when someone leaves.
Can a Foreign Company Hire in Australia Without a Local Company?
It's possible, but hard. A foreign company doing business in Australia usually has to register with ASIC, the government body for companies. To pay staff directly, it also has to set up:
- tax withholding from pay
- super payments
- payroll reporting to the tax office
- workers' compensation insurance in each state
Most companies hiring their first few people in Australia use an Employer of Record (EOR) instead. The EOR becomes the legal employer and takes care of these tasks. Read more in how an Employer of Record works.
How Gloroots Helps You Hire in Australia
Gloroots can be the legal employer for your team in Australia. You don't need to set up a local company. You direct the work. We handle the contracts, payroll, leave and super.
Most hires are onboarded in 3 to 5 days, and our support team is available 24/7. Gloroots works in 150+ countries, so you can use the same setup when you hire outside Australia.
To compare leave rules in other countries, see the Gloroots leave policy hub.
Frequently Asked Questions
Do casual workers in Australia get any paid leave?
Yes, but only one kind. Casuals get 10 days of paid family and domestic violence leave each year, from day one. They don't get paid holiday or sick leave. They get 25% extra pay instead.
Can staff swap annual leave for cash?
Yes, if their award allows it or they aren't covered by one. Each swap must be agreed in writing. They must keep at least 4 weeks of leave afterwards. You can't force it.
Is the 17.5% leave loading required for everyone?
No. It only applies if the employee's award or agreement includes it. Many awards do, so check for each role.
What happens to unused annual leave when someone leaves?
You must pay it out when the job ends, plus leave loading if their award includes it. This applies whether they quit or you end their job.
How long is Paid Parental Leave in 2026?
For a child born or adopted on or after 1 July 2026, families can get up to 26 weeks, paid at the national minimum wage. The government also pays 12% super on it.
Do employers pay super on Paid Parental Leave?
Not on the government payment. The ATO pays that super straight into the employee's fund. You pay normal super on any parental leave pay your company gives on top.
How many public holidays does Australia have?
There are 8 national public holidays, and each state adds its own. The total depends on where the employee works.
How does long service leave work in different states?
Each state has its own law. Staff qualify after 7 years in Victoria and the ACT, and after 10 years in the other states and territories. The leave ranges from about 6 to 13 weeks.
What can't go on a payslip for family and domestic violence leave?
The payslip can't mention FDV leave, including leave taken or the leave balance. Show the payment as normal hours worked or as another kind of pay. If the employee asks, you can show it as a different type of leave.
How does using an EOR help with leave rules in Australia?
The EOR is the legal employer, so it takes care of leave, payroll and super for your staff. Your company still directs the day-to-day work.
