Australia — Statutory Benefits & Leave

The Fair Work Act 2009 (Cth) establishes the national workplace relations system that governs most employment relationships in Australia. Part 2-2 of the Act sets out the National Employment Standards (NES), a legislated floor of minimum entitlements that apply to employees covered by the national system, regardless of whether they are also covered by a modern award or enterprise agreement.

Legislative framework and coverage

Section 61 of the Fair Work Act 2009 provides that the National Employment Standards are minimum standards applying to the employment of employees. The NES took effect on 1 July 2009 when the Fair Work system commenced, replacing the previous Australian Fair Pay and Conditions Standard.

Coverage turns on whether the employer is a national system employer and the employee is a national system employee as defined in Part 1-3 of the Act. The national system covers most private-sector employers operating as constitutional corporations (trading or financial corporations formed within the limits of the Commonwealth), the Commonwealth and its agencies, employers in the territories, and—since state referrals of power—most private employers in the referring states. Important exclusions include most state public sector employees and local government employees in certain states (particularly Western Australia from 1 January 2023), who remain covered by state industrial relations systems.

All national system employees are covered by the NES—full-time, part-time, and casual employees. However, casual employees receive only certain NES entitlements: the Fair Work Information Statement, maximum weekly hours, requests for flexible working arrangements (if employed on a regular and systematic basis for at least 12 months with a reasonable expectation of continuing employment), unpaid parental leave (same qualifying period), notice of termination, and the Casual Employment Information Statement. Casuals do not accrue paid annual leave or paid personal/carer's leave.

The ten National Employment Standards

Part 2-2 establishes ten minimum entitlements, organised across Divisions 3 through 12:

1. Maximum weekly hours (Division 3, s 62) — 38 hours per week plus reasonable additional hours
2. Requests for flexible working arrangements (Division 4, s 65) — certain employees may request changes to working arrangements
3. Parental leave and related entitlements (Division 5, ss 67–85) — up to 12 months of unpaid leave, with a right to request an additional 12 months, plus adoption-related leave
4. Annual leave (Division 6, ss 87–94) — four weeks of paid leave per year (4.8 weeks for certain shiftworkers)
5. Personal/carer's leave and compassionate leave (Division 7, ss 95–106B) — ten days of paid personal/carer's leave per year for full-time employees (pro-rata for part-time), plus two days of unpaid compassionate leave per occasion and (from 1 February 2023) ten days of paid family and domestic violence leave per year
6. Community service leave (Division 8, ss 107–113) — unpaid leave for voluntary emergency management activity and jury service
7. Long service leave (Division 9, s 113) — this NES division operates as a statutory placeholder; actual entitlements are set by state and territory long service leave legislation, not by the Fair Work Act itself
8. Public holidays (Division 10, ss 114–116) — entitlement to be absent from work on public holidays
9. Notice of termination and redundancy pay (Division 11, ss 117–123) — notice periods ranging from one to five weeks based on length of service, plus statutory redundancy pay for employees with at least one year of service (calculated on a sliding scale from four to sixteen weeks' pay)
10. Fair Work Information Statement and Casual Employment Information Statement (Division 12, ss 124–125A) — employers must provide the FWIS to all new employees and the CEIS to new casual employees when they start employment

Interaction with awards and agreements

Section 55 of the Fair Work Act 2009 establishes that a modern award or enterprise agreement must not exclude the NES or include terms that provide entitlements that are less beneficial than the corresponding NES entitlement. Any such term has no effect (s 56). However, awards and enterprise agreements may include terms that are ancillary or supplementary to the NES, or that deal with matters not covered by the NES. For example, an award may specify procedural rules for requesting annual leave, set a higher annual leave entitlement (e.g., five weeks instead of the statutory four), or provide additional paid leave categories.

For employees not covered by an award or agreement (award/agreement-free employees), the NES operate alongside the National Minimum Wage to establish the complete statutory floor.

Administrative oversight and enforcement

The Fair Work Ombudsman is responsible for promoting and monitoring compliance with the Fair Work Act, including the NES. Employers must provide every new employee with the Fair Work Information Statement when they start employment (s 124), and must provide casual employees with the Casual Employment Information Statement at the start of employment and at prescribed times throughout the employment relationship (s 125A).

Contraventions of NES entitlements are civil remedy provisions under Part 4-1 of the Fair Work Act 2009 (ss 44, 539). The Federal Court or Federal Circuit and Family Court may impose pecuniary penalties for breaches, with maximum penalties set on a per-contravention basis and higher penalties for serious contraventions involving deliberate or systemic conduct (s 557).

For cross-border employers hiring their first Australian employee, understanding the NES framework is critical: these entitlements cannot be contracted out or waived by agreement, and failure to comply exposes the employer to regulatory enforcement and potential class-action claims by affected employees.

Source: Fair Work Act 2009 (Cth) Source: National Employment Standards - Fair Work Ombudsman

Accrual entitlement

Section 87 of the Fair Work Act 2009 provides that a full-time employee is entitled to four weeks of paid annual leave for each year of service. A part-time employee is entitled to paid annual leave on a pro-rata basis according to the employee's ordinary hours of work. Casual employees are not entitled to paid annual leave under the National Employment Standards.

For a full-time employee working the standard 38-hour week, four weeks of annual leave equals 152 hours of accrued leave per year of service. The accrual is progressive and accumulates throughout the year based on ordinary hours of work, rather than crystallizing on an anniversary date. An employee may take annual leave once it has accrued (s 88(1)).

Shiftworker entitlement — five weeks

Section 87(1)(b) provides that an employee who is (or was) a shiftworker during the relevant year of service is entitled to five weeks of paid annual leave (or the equivalent pro-rata entitlement for part-time shiftworkers).

An employee qualifies as a shiftworker for NES purposes if:

• the employee is covered by a modern award or enterprise agreement that defines or describes the employee as a shiftworker for the purposes of the NES; or
• for award/agreement-free employees, the employee is employed in an enterprise in which shifts are continuously rostered 24 hours a day for seven days a week, the employee is regularly rostered to work those shifts, and the employee regularly works on Sundays and public holidays (s 87(3)).

The Fair Work Ombudsman has confirmed that the shiftworker definition is strict: an employee who works some weekend or evening shifts but does not meet the statutory test remains entitled to four weeks, not five weeks, of annual leave.

When annual leave accrues

Annual leave accrues based on the employee's ordinary hours of work (s 87). Section 20 of the Fair Work Act and regulation 1.11 of the Fair Work Regulations 2009 define ordinary hours of work for award/agreement-free employees; for employees covered by a modern award or agreement, ordinary hours are defined by the instrument.

Annual leave continues to accrue during periods of:

• paid leave (annual leave, personal/carer's leave, paid family and domestic violence leave, compassionate leave);
• unpaid parental leave and unpaid family and domestic violence leave (s 87(2));
• community service leave, including jury service; and
• authorized stand-down periods under s 524 of the Fair Work Act or under an applicable enterprise agreement or contract.

Annual leave does not accrue during:

• ordinary unpaid leave (unless an award or agreement provides otherwise);
• unpaid leave taken while receiving payments under the government-funded Paid Parental Leave scheme (because the employee is not performing work and the employer is not paying); or
• a period of annual leave that has been cashed out under s 94.

Taking annual leave

Section 88(1) provides that paid annual leave may be taken for a period agreed between the employer and the employee. An employer must not unreasonably refuse to agree to a request by the employee to take paid annual leave (s 88(2)).

Payment for annual leave

Section 90(1) provides that if an employee takes a period of paid annual leave, the employer must pay the employee at the employee's base rate of pay for the employee's ordinary hours of work in the period.

For employees covered by a modern award or enterprise agreement, the award or agreement may specify that the employee is entitled to payment at the employee's full rate of pay (which includes applicable allowances, loadings, and other separately identifiable amounts) rather than the base rate of pay. Many modern awards provide for an annual leave loading of 17.5% in lieu of shift penalties and weekend loadings that the employee would have received if the employee had been at work. The loading is paid if it results in a higher amount than the employee would have received under the full-rate-of-pay method.

Payment on termination

Section 90(2) provides that if the employment of an employee ends and, at the end of the employment, the employee has a period of untaken paid annual leave, the employer must pay the employee the amount that would have been payable to the employee had the employee taken that period of leave. This payment is made at the base rate of pay (or full rate of pay if the award or agreement so provides) and includes any applicable annual leave loading if the employee's award or agreement requires it. The Fair Work Ombudsman has confirmed that untaken annual leave must be paid out on termination; it cannot be forfeited.

Cashing out annual leave

Section 92 of the Fair Work Act 2009 establishes a strict prohibition: paid annual leave must not be cashed out except in accordance with permitted cashing-out terms in a modern award, enterprise agreement, or (for award/agreement-free employees) a written agreement under s 94.

For award/agreement-free employees, s 94 permits cashing out only if:

• the employee has accrued at least four weeks of paid annual leave (the minimum entitlement);
• the agreement to cash out is in writing and signed by the employer and employee;
• the employee is paid at least the amount that would have been payable had the employee taken the leave; and
• the cashing out does not result in the employee's remaining accrued entitlement being less than four weeks.

Most modern awards that permit cashing out impose additional restrictions, commonly limiting cashing out to a maximum of two weeks of accrued leave in any 12-month period.

Section 94(2) makes it unlawful for an employer to exert undue influence or undue pressure on an employee to make (or not make) an agreement to cash out paid annual leave. Contraventions are civil remedy provisions enforceable by the Fair Work Ombudsman, with pecuniary penalties available under Part 4-1 of the Fair Work Act.

Interaction with modern awards and enterprise agreements

Section 93 of the Fair Work Act 2009 permits a modern award or enterprise agreement to include terms dealing with how annual leave is taken (for example, specifying minimum notice periods for leave requests or setting out a dispute-resolution procedure) and how it is cashed out, provided those terms do not result in the employee receiving less than the NES entitlement of four weeks (or five weeks for shiftworkers). An award or agreement may provide a higher annual leave entitlement (for example, five weeks for all employees or six weeks for shiftworkers), and that higher entitlement becomes the minimum enforceable standard for employees covered by the instrument.

For cross-border employers setting up an Australian entity and hiring their first local employee, understanding the annual-leave accrual and payment mechanics is essential for payroll configuration. The statutory floor is four weeks (152 hours for a full-time 38-hour-week employee), accrual is progressive, and untaken leave is a balance-sheet liability that must be paid out on termination at the employee's base rate (or full rate if the award so requires) plus any applicable loading.

Source: Fair Work Act 2009 (Cth), ss 87–94 Source: Fair Work Regulations 2009 (Cth), reg 1.11 Source: Annual leave - Fair Work Ombudsman

Statutory rate and effective dates

Employers covered by the national system must make superannuation (pension) contributions for eligible employees under the Superannuation Guarantee (Administration) Act 1992 (Cth).

• The Superannuation Guarantee (SG) rate is 12% of each eligible employee's ordinary time earnings (OTE) from 1 July 2025 onward, covering both the 2025–26 and 2026–27 financial years. There are no currently scheduled further increases beyond 12%.
• The rate increase to 12% was the final step in a multi-year phased pathway. The rate for 2024–25 was 11.5%.
• Key source: sections 19–21 of the SGAA 1992, as amended.
• The Australian Taxation Office (ATO) publishes the current and historical rates and thresholds in its Super guarantee rate schedule.

Ordinary time earnings (OTE)

Contributions are calculated on each eligible employee’s OTE, as defined in the SGAA 1992 and ATO rulings. OTE includes an employee’s salary/wages for ordinary hours of work and certain paid leave, but excludes overtime and certain allowances. (See ATO guide for granular inclusions/exclusions.)

Maximum contribution base (MCB)

For FY2025–26, the maximum contribution base per quarter is $62,500 (annual MCB $250,000). Employers are not required to pay SG contributions on OTE above this amount per employee, per quarter.

Payment frequency — Quarterly through 30 June 2026, then Payday Super

• Through 30 June 2026: Employers must pay SG contributions at least quarterly. Due dates are: 28 October, 28 January, 28 April, 28 July (for the previous quarter).
• From 1 July 2026: The Payday Super regime requires SG contributions to be paid on or before seven days after each payday. This reform was legislated in 2023, with the commencement date now confirmed. Employers should plan system/process changes.

Paid Parental Leave Superannuation Contribution (PPLSC), effective 1 July 2025

• From 1 July 2025, the government will pay superannuation contributions on government-funded paid parental leave (PPL). The ATO will administer these as a lump sum deposited into the employee’s nominated super fund after the end of the financial year in which PPL was taken.
• This is distinct from SG on ordinary salary, and employers have no payment or reporting obligation for PPLSC; administration is government-run.
• This closes a prior exemption under the SG rules for PPL payments.

Superannuation guarantee charge (SGC) for late/missed payments

• Employers who fail to pay by the due date incur a superannuation guarantee charge (SGC), calculated on a broader base and including penalties and interest, and lose deductibility for the amount. The reporting and payment deadline for SGC continues to track one month after each due date (quarterly through 30 June 2026; Payday Super regime from July 2026).

Employee eligibility, fund choice, award interactions

• SG is owed to all employees aged 18+ or under 18 working over 30 hours/week. Narrow exemptions exist for some private/domestic workers or employees on certain visa classes.
• Employers must offer fund choice and, if an employee does not choose, pay into that employee's stapled fund or the employer's default (MySuper) fund, following procedures set by the ATO.
• Some modern awards or enterprise agreements may require higher contributions. Contributions required by an award/agreement may be counted toward the SG liability if paid to a complying fund.

Cross-border employer note

Budget at least 12% of ordinary time earnings as a non-wage statutory cost for Australian hires, and ensure HR/payroll is ready for the Payday Super compliance change from July 2026. Monitor ATO and Treasury sources for any changes to maximum base, compliance rules, or further super regulatory reforms.

Material updates since prior version

• Confirmed 12% SG rate with no further scheduled increases as of July 2025.
• Incorporated effective date and details of Payday Super (SG due each payday from 1 July 2026).
• Added Paid Parental Leave Superannuation Contribution, including its ATO-administered mechanism and employer obligations (effective 1 July 2025).

Source: Superannuation Guarantee (Administration) Act 1992 (Cth) Source: Super guarantee — Australian Taxation Office Source: How much super to pay — Australian Taxation Office Source: Payday super: What employers need to know — ATO Source: Paid Parental Leave Superannuation Contribution — Services Australia

Statutory entitlement and coverage

Section 96 of the Fair Work Act 2009 (Cth) entitles a national system employee (other than a casual) to paid personal/carer’s leave. This is sometimes referred to informally as statutory sick leave, but by statute covers both time off for illness/injury and necessary care (or support) of an immediate family or household member due to illness/injury or an unexpected emergency (s 97).

Amount and accrual mechanics

A full-time employee is entitled to 10 days of paid personal/carer’s leave per year of service, accruing progressively throughout the year based on ordinary hours of work (s 96(2)). For a part-time employee, the entitlement accrues on a pro-rata basis reflecting their ordinary hours. Accrual starts from the employee’s commencement and is cumulative—unused leave rolls over year-to-year rather than being forfeited at year-end (s 96(3)).

Personal/carer’s leave continues to accrue during periods of paid leave (including annual and personal leave), but not during unpaid leave unless an award or agreement provides otherwise. For employees who transition from part-time to full-time (or vice versa), accrual reflects the actual ordinary hours worked in each period.

Usage and requirements

An employee may use paid personal/carer’s leave when:

• personally unfit for work due to illness or injury; or
• required to provide care or support to a member of the employee’s immediate family or household for reasons of illness, injury, or an unexpected emergency affecting that person.

Immediate family is defined broadly in s 12 (including spouse, de facto, child, parent, grandparent, grandchild, sibling, and equivalents of partner’s family members).

Where paid leave is exhausted, employees may access up to 2 days of unpaid carer’s leave per eligible occasion (s 102), and all employees (including casuals) are entitled to this unpaid leave. If all paid and unpaid personal/carer’s leave is exhausted and the employee meets eligibility, further unpaid leave (community service or parental) may be available under other NES provisions.

Evidence and notice

An employer may require evidence (e.g., a medical certificate or statutory declaration) that would satisfy a reasonable person that the leave is legitimate (s 107). There’s no statutory form for such evidence, but failure to provide acceptable documentation may permit the employer to treat the absence as unauthorized. Notice of absence must be given as soon as practicable (which may be after starting leave if circumstances warrant).

Interaction with awards, agreements, and local policy

A modern award or enterprise agreement may specify additional terms (e.g., enhanced leave, stricter notice/documentation procedures) but cannot displace or reduce NES minimum entitlements (ss 55–56). Awards may also specify procedural rules for how leave is to be taken or notified. Employer policies must comply with and not undermine these minimums.

For cross-border or first-time Australian employers, it is critical to configure payroll and policy to comply with this 10-day cumulative accrual, require evidence only to the statutory threshold, and not prorate or grant as a lump sum at year-start (unless the employee’s hourly pattern and service warrant).

Source: Fair Work Act 2009 (Cth), ss 96–106A Source: Personal/carer’s leave – Fair Work Ombudsman

Effective 1 February 2023 (for non-small-business employers) and 1 August 2023 (for small-business employers), the National Employment Standards (NES) entitle all employees in Australia (including casuals) to ten days of paid family and domestic violence leave per 12-month period. This reform, enacted in Part 2-2, Division 7, Subdivision CA (ss 106A–106E) of the Fair Work Act 2009 (Cth), replaced the previous five days’ unpaid NES entitlement.

Entitlement and accrual mechanics

• The entitlement is ten days of paid leave per year, available upfront (not accruing progressively).
• The ten-day balance renews on each employee’s work anniversary (not the calendar year or financial year).
• The leave is available to all employees (full-time, part-time, and casual) from day one of employment.

Eligible circumstances An employee may take paid family and domestic violence leave if they need to do something to deal with the impact of family and domestic violence that is not practical outside working hours. Family and domestic violence is defined to include violent, threatening, or abusive behavior by a close relative, current or former intimate partner, or member of the employee’s household.

Examples of permitted purposes: arranging for the safety of the employee or a close relative (including relocation), attending court hearings, accessing police services, or attending healthcare or counseling. This entitlement operates in addition to all other NES leave categories; it cannot be deducted from personal/carer’s leave or annual leave.

Payment and payslip rules

• Paid at the employee’s full rate of pay for the hours they would have worked (including loadings, bonuses, and incentive-based payments).
• Payslips must not mention family and domestic violence leave specifically. If leave is taken, it should be recorded as ordinary paid leave or another paid entitlement to preserve employee privacy (s 106E).

Notice and evidence

• Employees must notify the employer as soon as practicable (which may be after starting leave).
• The employer may require evidence to satisfy a reasonable person that the leave is for a permitted reason (e.g., police documents, court orders, statutory declarations, or healthcare provider letters). The Fair Work Act does not prescribe a form of evidence.
• Employers must take steps to ensure information provided is kept confidential, as far as reasonably practicable, except as required by law or to protect life, health, or safety.

Interaction with awards and agreements A modern award or enterprise agreement cannot reduce or modify the NES entitlement. Any more generous term continues to apply if better than the NES, but less beneficial terms are not valid for NES coverage.

Coverage timeline

• Non-small-business employers: 1 February 2023
• Small-business employers (fewer than 15 employees): 1 August 2023

This reform marks a major shift in the statutory leave landscape and imposes new compliance steps for payroll, HR, and privacy configurations.

Source: Fair Work Act 2009 (Cth), ss 106A–106E Source: Family and domestic violence leave – Fair Work Ombudsman

Statutory public holiday entitlement under the NES

Sections 114–116 of the Fair Work Act 2009 (Cth) set out the National Employment Standards (NES) for public holidays. Every national system employee (full-time, part-time, or casual) is entitled to be absent from work on a day or part-day that is a public holiday in the place where they work (s 114(1)). This applies unless the employer reasonably requests the employee to work that day and the employee's refusal is not reasonable per the multi-factor test set out in s 114(4).

What is a public holiday? Public holidays are days or part-days declared under a law of a state or territory. This includes nationally observed days (New Year’s Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Christmas Day, Boxing Day) and state- or territory-specific days (e.g., Labour Day, King's Birthday, Melbourne Cup Day in Victoria). The applicable public holidays depend on the location in which the employee works.

Entitlement to be absent and pay for absence Employees (other than casuals not rostered) who would normally work on a public holiday are entitled to be absent and must be paid their base rate of pay for the ordinary hours they would have worked (s 116). If required to work, an employee may refuse if reasonable, considering criteria such as the type of work, the nature of the employer’s business, the employee's personal circumstances (e.g., family responsibilities), whether reasonable notice was given, and reasonable business grounds for the request (s 114(4)).

Casual employees are only entitled to paid absence if they would have been rostered to work that day.

Pay for work performed on a public holiday The Fair Work Act does not mandate penalty rates for work on public holidays. Penalty rates are typically addressed in modern awards or enterprise agreements, often at 150%–250% of base rate, but for award/agreement-free employees, only the base rate for ordinary hours is guaranteed under the NES.

Substituting public holidays Sections 115(1) and (3) allow the substitution of a public holiday for another day—either by mutual agreement with the individual employee or as specified in a relevant modern award or enterprise agreement. Substituted days are treated as public holidays for NES purposes.

Interaction with state/territory law and industrial instruments The NES sets the federal minimum. Awards, agreements, and state/territory law may provide additional holidays or higher rates, but cannot reduce or undercut NES entitlements (s 55).

Payroll must be set for the correct state-specific holidays and for any relevant industrial instrument or agreement provisions as well as the NES minimum.

Source: Fair Work Act 2009 (Cth), ss 114–116 Source: Public holidays – Fair Work Ombudsman

Unpaid parental leave: NES minimum and who qualifies

Under the National Employment Standards in the Fair Work Act 2009 (Cth), Division 5 (ss 67–85), eligible employees are entitled to up to 12 months’ unpaid parental leave after the birth or adoption of a child, with a statutory right to request an additional 12 months’ extension (up to 24 months total between an employee couple). This statutory leave sets a national minimum; state or territory laws, modern awards or enterprise agreements may provide more generous terms but cannot undercut the NES minimum (s 55).

Eligibility criteria

• The employee must have completed at least 12 months of continuous service with their employer immediately before the expected date of birth or placement of the child (s 67).
• Part-time and full-time employees are eligible; long-term casuals may also qualify if they have been employed on a regular and systematic basis for at least 12 months with a reasonable expectation of ongoing employment (s 67(2)).
• Both parents working for the same employer may take unpaid parental leave, generally sequentially (s 72), but up to eight weeks can be taken concurrently in separate blocks of at least two weeks (s 72(5)), unless the employer agrees to shorter blocks.

Types of parental leave The leave covers:

• Birth of a child to an employee or the employee’s spouse/de facto partner.
• Placement of a child under 16 for adoption.

This entitlement is distinct from the Commonwealth government’s Paid Parental Leave scheme, which provides an income stream but is not funded or administered by employers. NES unpaid parental leave sits alongside (not instead of) any PPL entitlement.

Notice and evidence requirements

• Employees must give at least 10 weeks’ written notice before starting leave and, at least four weeks before, must confirm the intended start and end dates in writing. If practicable, employees must also advise of any extension request in writing at least four weeks before the end of the first period (s 74).
• Employers may require evidence of the expected birth/placement date (s 74(4)).

“No safe job” and pregnancy transfer Employees pregnant with a child are entitled to be transferred to a safe job or be given paid “no safe job” leave if no appropriate safe job is available, subject to provision of medical evidence (ss 81–84).

Employment protections

• Strict return-to-work guarantee (s 84): the employee is entitled to return to their pre-leave position or, if that position no longer exists, to an available position nearest in status and pay.

Cross-border employer note For first-time Australian hires, configure contracts, policy, and payroll for this 12–24 month statutory unpaid leave (including job protection), not just any paid scheme.

Source: Fair Work Act 2009 (Cth), ss 67–85 Source: Parental leave and related entitlements – Fair Work Ombudsman

Long service leave (LSL) in Australia: National system deferral to state/territory law

Long service leave (LSL) is unique among minimum entitlements in Australia: while most National Employment Standards (NES) obligations are set by the Fair Work Act 2009 (Cth), the entitlement to LSL is governed by state and territory law or certain preserved federal awards, not by the NES itself. The NES, at Division 9, s 113, explicitly provides a cross-reference ‘placeholder,’ directing employers and employees to the applicable state, territory, or pre-2010 instrument for rules on eligibility, quantum, and accrual.

How the NES handles LSL: s 113 framework Section 113 of the Fair Work Act 2009 states that an employee’s long service leave entitlement (for national system employees) is whichever of the following applies:

• (a) the entitlement under a pre-modern award or transitional instrument that preserved long service leave rights prior to 1 January 2010; or
• (b) if no such instrument applies, the law of the State or Territory where the employee ordinarily works.

No single, uniform national entitlement applies. For most private-sector employees, LSL rights default to the relevant state/territory LSL statute; these statutes set the qualifying period (usually between 7 and 10 years), the accrual formula (typically weeks of paid leave per completed years of continuous service), and rules for pro rata payout and portability, but the details vary substantially between jurisdictions. The NES does not itself define any minimum qualifying period, accrual rate, or pro rata threshold.

Compliance considerations For cross-border and first-time Australian employers, it is critical to confirm:

• The primary workplace location for each employee, as this determines which state or territory LSL law applies;
• Whether any transitional industrial instrument takes precedence; and
• That the payroll system is configured for accrual, payout, and pro rata triggers in line with applicable local law—not the NES itself.

Payroll and contracts must be tailored by employee location; a single national LSL policy will not suffice. Errors arise frequently when the NES LSL "placeholder" is confused for a universal entitlement. The Fair Work Ombudsman does not enforce state LSL statutes; enforcement occurs under local law.

Detailed specifics of LSL—such as years of service required, weeks of leave accrued, and pro rata payout triggers—are not set by the Fair Work Act and require reference to each state/territory’s legislation.

Source: Fair Work Act 2009 (Cth), s 113

Statutory right to community service leave under the NES

Division 8 of Part 2-2 of the Fair Work Act 2009 (Cth) entitles all national system employees—including full-time, part-time, and casuals—to unpaid community service leave for certain community service activities. The two primary categories covered are: (1) jury service (service as a juror in a federal, state, or territory court), and (2) voluntary emergency management activities.

Who qualifies and for what activities? Section 109 provides that an employee engages in community service activity if they are:

• engaging in eligible jury service, or
• engaged in a voluntary emergency management activity (for a recognized emergency management body, during an emergency or natural disaster, and with employer consent if required).

No minimum qualifying period applies; the right to leave is available from day one.

Leave entitlements and duration

• Employees are entitled to be absent from work for the time they are engaged in the eligible activity, and for reasonable travel and rest associated with the activity (s 108(1)).
• There is no cap on the duration of unpaid community service leave: it continues for as long as the activity (e.g., the length of a trial or disaster deployment) and reasonable travel/rest require.

Jury service — paid leave rules Section 111 establishes a special regime for jury service:

• Permanent (full- or part-time) employees are entitled, for the first 10 days of absence for jury service, to make-up pay from the employer.
• "Make-up pay" means the difference between the employee’s base rate of pay for ordinary hours they would have worked, and any jury duty amount paid by the court or government (s 112).
• After 10 days, the NES does not require further make-up pay, but the employee remains entitled to unpaid leave for jury service beyond 10 days.
• Casual employees do not receive paid jury service leave, but may take unpaid leave.

Notice and evidence requirements Section 107 requires the employee to give notice as soon as practicable (can be after starting the leave) and to specify the expected period. Reasonable evidence (such as a jury service summons and proof of any payments received) may be required.

Emergency management — coverage and limits Statutory leave only applies to eligible voluntary activities for recognized bodies (like the State Emergency Service, Country Fire Authority (CFA), Rural Fire Service (RFS), or Red Cross). The employer may request evidence that the activity qualifies. Employer consent may be required if the emergency management body requests it or if the employee’s absence could cause unreasonable hardship to the employer.

Interaction with awards, agreements, and local policy An award or agreement may improve on the NES minimums, but cannot reduce community service leave entitlements. Typical improvements may include make-up pay for longer jury service or paid leave for emergency volunteering. Employer policy cannot undercut the NES.

Cross-border employer risk Payroll must be configured to process 10 days' paid jury service leave correctly and to grant uncapped unpaid leave for any eligible period. Failing to correctly offset court payments from make-up pay is a common error.

Source: Fair Work Act 2009 (Cth), ss 107–113 Source: Community service leave – Fair Work Ombudsman

Statutory basis and current minimum rate Australia's national minimum wage is set and regularly reviewed under Part 2-6 of the Fair Work Act 2009 (Cth). The minimum rate is determined by the Fair Work Commission (FWC) in the annual wage review and published in the National Minimum Wage Order (s 285–299). The statutory minimum wage applies as a floor to any employee not covered by a higher modern award or enterprise agreement minimum (s 294). As of 1 July 2024, the national minimum wage is $915.90 per week, or $24.10 per hour, for a full-time adult employee (aged 21 or over, not a junior, trainee, or worker with a disability paid under a supported wage system).

Effective date and coverage

• The 2024–2025 rate became effective on 1 July 2024; the Fair Work Ombudsman currently publishes this figure as the live, enforceable minimum.
• Special (lower) statutory minimums may apply to junior employees (under 21), apprentices, and employees covered by the supported wage system; these secondary rates are detailed each year in the FWC wage order and on the FWO website.
• Most Australian employees are also covered by a modern award, which will often set a higher rate for their specific role or industry. In such cases, the award minimum overrides the national minimum wage, and the employer must pay the higher of the two.
• The minimum wage for casuals is the base hourly minimum plus a 25% loading, unless a different loading applies under an award or enterprise agreement (s 294(3)).

How minimum pay works in payroll

• The weekly and hourly minima are calculated based on a standard 38-hour week for full-time employees (Fair Work Act s 62).
• Employers are legally required to pay at least the minimum wage (national or award), or be subject to civil penalties and underpayment recovery actions (ss 44, 293–294).
• Annual wage review adjustments are typically effective from 1 July each year (next scheduled review: July 2025). As of this publication date, FWO has not published figures effective 1 July 2025 or beyond—these remain unconfirmed.

Cross-border employer requirements For new Australian or multinational employers, confirming whether a modern award applies is essential. If no award or agreement applies, the national minimum wage sets the statutory floor. Payroll and contracts must be reviewed at least annually to track wage order increases and ensure legal compliance.

Source: Fair Work Act 2009 (Cth), Part 2-6 Source: National minimum wage — Fair Work Ombudsman Unable to confirm as of 2026-06-16 the 2025–2026 minimum wage rate.

Australia’s government-funded Paid Parental Leave (PPL) scheme is governed by the Paid Parental Leave Act 2010 (Cth) and has recently been materially expanded. These changes affect statutory entitlement, payment rates, and eligibility for children born or adopted on or after 1 July 2026.

Statutory entitlement — What changed:

• From 1 July 2023 to 30 June 2026, the maximum entitlement is 20 weeks (100 payable days) of Parental Leave Pay (PLP).
• From 1 July 2026, this increases to 26 weeks (130 payable days) for the birth or adoption of a child occurring on or after that date. This implements amendments to the Paid Parental Leave Act 2010 and the government’s 2024–2025 budget measures.
• The PLP rate rises to $1,004.70 per week (equivalent to the national minimum wage as adjusted annually by the Fair Work Commission).
• Leave can be shared between partners, taken flexibly in blocks, and combined with employer-funded leave; rules for taking and sharing were updated in 2023 and remain in force for the expanded scheme.

Eligibility updates:

• Workforce participation test: unchanged (must have worked at least 330 hours over 10 of the 13 months prior to the birth/adoption, with no break longer than 12 weeks).
• The individual income threshold for eligibility increases to $186,487 for the financial year starting 1 July 2026, and a combined family-income threshold is set at $386,525 for the same period.
• Other requirements remain: Australian residency and primary carer status for the claim period.

Payment and employer role:

• The Commonwealth (via Services Australia) pays PLP; employers act as paymasters when required (i.e., the employee has been working for the employer for at least 12 months). Employer obligation remains administrative only—there is still no employer cost.
• Superannuation Guarantee contributions will also be paid by the government on PLP periods for claims with a child born or adopted on or after 1 July 2025, administered as a lump sum by the ATO after financial year-end. Employers have no role in these payments, and PLP periods remain generally not counted for employer superannuation purposes.

Interaction with NES unpaid parental leave:

• PPL operates independently of NES unpaid parental leave (up to 12 months, with right to request an additional 12 months). Job protection is provided by NES leave, income support by PPL.

Recent material changes:

• 2023: Scheme expanded to 100 days (20 weeks) for births on/after 1 July 2023, plus flexible and shared leave options.
• 2025: Superannuation Guarantee contributions commence on PPL for eligible claims of children born from 1 July 2025.
• 2026: Scheme expands to 130 days (26 weeks) and higher income thresholds for claims on or after 1 July 2026.

For full details or case-specific application, consult the current version of the Paid Parental Leave Act and relevant government publications.

Source: Paid Parental Leave Act 2010 (Cth) Source: Parental Leave Pay – Services Australia Source: Paid Parental Leave expansion – Prime Minister’s Office Budget Fact Sheet, May 2024 Source: Superannuation Guarantee on Parental Leave Pay – Services Australia

In Australia, leave for work-related injuries or illnesses is provided under mandatory state or territory workers’ compensation laws, not directly under the Fair Work Act 2009 (Cth) or the National Employment Standards (NES). Each state and territory has its own workers’ compensation statute (e.g., Workers Compensation Act 1987 (NSW)), with private-sector employers required to secure insurance and provide entitlements when an employee is incapacitated due to a work-related injury or illness, subject to accepted claims and medical certification. The precise benefit rate, eligibility test, and replacement pay formula are set out in the relevant state or territory statute, not federal law. The Fair Work Act 2009 governs the interaction between NES leave entitlements and workers’ compensation absences, but does not set payroll mechanics or compensation rates itself.

Interaction with NES and accrual of leave Section 130(1) of the Fair Work Act 2009 (Cth) provides that an employee is "not entitled to take or accrue any leave under this Part during a period when the employee is absent from work because of illness or injury for which the employee is receiving compensation payable under a law (whether of the Commonwealth, a State or a Territory) prescribed by the regulations." This means that if an employee is absent on a period of paid workers’ compensation—where benefits are being paid for incapacity—annual leave or personal/carer’s leave will generally neither accrue nor be deducted during that period. However, section 130(2) allows for an exception: if an applicable award, enterprise agreement, or compensation law expressly permits accrual or taking of NES leave during compensated absence, that instrument prevails.

Prohibited termination while on workers’ compensation Section 352 of the Fair Work Act makes it unlawful to dismiss an employee solely because they are temporarily absent from work due to illness or injury, provided the absence is covered by a medical certificate and does not exceed permissible time periods set by regulation 3.01 of the Fair Work Regulations 2009. This statutory protection overlays with state and territory anti-dismissal provisions under workers’ compensation laws.

Payroll and compliance The Fair Work Act does not govern who pays the workers’ compensation benefit or specify the payroll mechanics; those responsibilities are set by the relevant state/territory law and insurance policy. The federal law only determines when NES leave accrues, how statutory protections apply, and sets documentation/record-keeping expectations. Employers must keep clear payroll records distinguishing workers’ compensation absences from paid NES leave.

For cross-border or first-time Australian employers, it is critical to: (1) obtain workers’ compensation insurance as required by local law; (2) configure payroll to ensure NES leave is not incorrectly accrued or used during compensated injury absences unless an award or statute permits; and (3) understand that rates, qualifying rules, and leave durations must be confirmed under the relevant state or territory act, not federal law.

Source: Fair Work Act 2009 (Cth), ss 12, 130, 352

NES rule: public holiday intersects with annual, personal/carer's or parental leave

Sections 89, 98, 100, and 85 of the Fair Work Act 2009 (Cth) set out the statutory interaction when a designated public holiday falls during a period of annual leave, paid personal/carer’s leave, or unpaid parental leave.

• Annual leave (s 89): If a public holiday falls during a period when an employee is taking paid annual leave, the employee is not taken to be on annual leave for the public holiday. The day is treated as a public holiday, paid at base rate for ordinary hours, and does not come out of the employee’s annual leave accrual.

• Personal/carer’s leave (s 98): A similar rule applies—if a public holiday falls during a period of paid personal/carer’s leave, the day is not deducted from the employee’s personal/carer’s leave balance. The employee is entitled to be paid for the public holiday, not as personal/carer’s leave.

• Compassionate leave (s 100): For a period covered by compassionate leave, the period must not include a public holiday. Statute ensures the public holiday is not deducted from the compassionate leave entitlement.

• Unpaid parental leave (s 85): Public holidays do not extend unpaid parental leave—if a public holiday falls during unpaid parental leave, there is no additional entitlement (because the employee is already on unpaid status), but it is not separately deducted or credited.

For payroll and compliance, the employer must ensure that when processing annual or personal/carer’s leave, public holidays designated under state or territory law are not deducted from the statutory paid-leave balances. This is distinct from an award or agreement, which may grant extra holidays or enhanced rules, but the NES sets the minimum.

Practically, if an employee takes two weeks of annual leave overlapping with a public holiday, only nine days (for a standard Monday–Friday employee with one public holiday in that period) are deducted from the annual leave balance—the public holiday is paid as such.

Employers should check the list of public holidays designated in the location where the employee works, as NES leave interaction applies only to these days, not employer-granted or special holidays.

This rule prevents double-dipping (not deducting paid leave on public holiday) and misapplication (not short-paying an employee by deducting both leave day and public holiday pay for the same day).

Source: Fair Work Act 2009 (Cth), ss 85, 89, 98, 100 Source: Annual leave and public holidays — Fair Work Ombudsman

How does statutory leave interact with notice of termination?

When an employee’s employment is terminated, the Fair Work Act 2009 (Cth) prescribes minimum notice periods (ss 117–123) and sets strict rules for the treatment of annual leave, personal/carer’s leave, and public holidays during both a worked and paid-in-lieu notice period. This is a critical compliance area for employers offboarding staff—and an area often scrutinized during payroll audits and underpayment disputes.

Accrual and payment during the notice period:

• If an employee works out their notice period, they continue to accrue annual leave and personal/carer’s leave (as well as long service leave, if applicable) up until the date their employment ends. Any public holiday that falls during the notice period is treated as a paid public holiday and is not deducted from leave balances (s 116, s 89).
• If the employer pays the employee in lieu of notice—meaning the employee is immediately released from duties but paid as if they had served the notice period—accrual of annual leave and personal/carer’s leave ends on the employee’s termination date (the date they stop physically working and employment ceases). The payout in lieu counts as termination pay, not as a period of service.

Paying out accrued leave on termination: Section 90(2) of the Fair Work Act requires employers to pay out all accrued, untaken annual leave at the base rate of pay (or full rate if the relevant award/enterprise agreement so provides), including any annual leave loading if applicable, regardless of the reason for termination. Personal/carer’s leave not taken lapses; there is no statutory entitlement to payout. Accrued long service leave is generally paid if the employee qualifies under state/territory law (see relevant acts).

Public holidays and leave during notice:

• If a public holiday falls during a worked notice period, the employee is entitled to be paid for the public holiday. This day is not deducted from annual or personal leave balances (s 89, s 116).
• If the notice period is paid in lieu, the employee is not entitled to separate payment for any public holiday that would have occurred during the notional notice period after the employment ends.

Relevant NES and payroll mechanics:

• Last day of employment: accrual of annual/personal leave ceases, irrespective of whether notice was worked.
• Payment in lieu of notice: treated as a lump-sum payment; does not extend service for purposes of further leave accrual.
• Record-keeping: Payslips and termination statements must accurately separate final pay components—ordinary earnings, pay in lieu, annual leave payout, redundancy pay (if applicable), and superannuation.

For cross-border employers terminating an Australia-based employee, configuring payroll to comply with the NES on notice, leave accrual, and payouts is mandatory. Overlooking the distinction between a worked and paid-in-lieu notice period is a frequent compliance trap and can result in underpayment claims and penalties.

Source: Fair Work Act 2009 (Cth), ss 90, 116, 117–123

Statutory right to request flexible working arrangements under the NES

Section 65 of the Fair Work Act 2009 (Cth) provides eligible national-system employees with a legislated right to request flexible working arrangements. This right is part of the National Employment Standards (NES) since 1 January 2010, with significant amendments effective from 6 June 2023 (Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022), including expanded dispute resolution powers for the Fair Work Commission.

Who is eligible to request flexible work? The right applies to employees (other than casuals who do not have a reasonable expectation of continuing employment) who have completed at least 12 months' continuous service (or, for casuals, regular and systematic service with a reasonable expectation this will continue), and who:

• Are parents or have responsibility for the care of a child of school age or younger
• Are carers (as defined by the Carer Recognition Act 2010)
• Have a disability
• Are aged 55 or older
• Are experiencing family or domestic violence, or are providing care or support to an immediate family or household member experiencing such violence
• Effective 6 June 2023, pregnant employees are explicitly included as eligible

Request mechanics

• Requests for flexible working arrangements must be made in writing, set out the details of the change sought, and explain the reasons (s 65(3)–(4)).
• Flexible working arrangements can include changes to hours, work patterns (e.g., split shifts), or location (such as remote work or telecommuting).

Employer obligations

• Employers must respond in writing within 21 days (s 65(4)), stating whether the request is granted or refused. Refusals must detail the "reasonable business grounds" (e.g., cost, impracticality, impact on other employees, lack of capacity to change hours).
• As of June 2023, employers must: (a) genuinely try to reach agreement; (b) discuss the request with the employee; (c) consider the employee’s circumstances and consequences of any refusal; and (d) provide details of any alternative arrangement they would be willing to make.
• If an employer refuses the request, the written response must detail the reasons, include information about any alternative available and inform the employee of any dispute resolution options via the Fair Work Commission (s 65A).

Enforcement and dispute resolution

• Since 6 June 2023, if an employer refuses a request (or fails to respond), the employee may refer the dispute to the Fair Work Commission for arbitration (s 65B). The Commission can order the employer to grant the flexible work arrangement if refusal was not genuinely based on reasonable business grounds.

Interaction with awards, agreements, and employer policy

• Awards and enterprise agreements may set more beneficial terms, but cannot undercut NES rights. Any additional procedural or evidentiary requirements must remain consistent with the minimum NES framework. Employer policy cannot exclude or undermine statutory NES entitlements.

For cross-border or newly established employers in Australia, configuring HR policy and manager training for this statutory process is critical; it is not discretionary and there is a real enforcement and reputational risk for non-compliance after the 2023 amendments.

Source: Fair Work Act 2009 (Cth), s 65 Source: Flexible working arrangements – Fair Work Ombudsman