Employee Leave Policy Template [Australia]

What is in this leave policy template?

This free leave policy template is created to provide your business with everything needed to manage employee time off on a regular basis efficiently and fairly: 

• Easy-to-follow procedures and guidelines for all types of leave in Australia
• Leave practices that can be adjusted as your workplace evolves
• A simple, step-by-step approach to time-off requests that can be easily uploaded in your payroll system 

What are the different types of leave?

Understanding the different types of leave available to your team is a crucial part of running any Australian business. The National Employment Standards (NES) outlines the minimum leave entitlements you must provide, but your specific employment contracts can include additional benefits.

The following leave types represent the most common entitlements for employees across Australia, in addition to public holidays, which vary by state and territory:

Sick leave or personal leave

A leave policy should cover sick leave (more formally known as personal/carer’s leave) for all eligible Australian employees. This allows time off when employees are unwell or when caring for immediate family members. Full-time staff receive 10 paid days annually, with part-time employees getting a pro-rata amount depending on their working arrangement. This Fair Work Act entitlement ensures employees can address health needs without employment risks.

Annual leave

All Australian employees are entitled to 4 weeks of annual leave annually, with part-time workers receiving amounts proportional to their hours, and a leave policy must address it.

Annual leave accumulates gradually, and while timing should be discussed with management, employers cannot unreasonably refuse requests. Annual leave is paid and is calculated at the regular base rate, though specific industry awards may specify additional requirements during peak operational periods.

Parental leave

The parental leave section of your leave policy template should detail eligibility requirements and entitlements for new parents. Eligible employees who have accrued 12 months of service can access parental leave upon giving birth, when their spouse or partner gives birth, or when adopting a child.

The standard entitlement is 12 months of unpaid leave with an option for 12 additional months. While typically unpaid, government-funded Parental Leave Pay (PLP) may be available, and some employers voluntarily offer their own paid schemes.

Long service leave

Long service leave rewards employee loyalty with an extended paid break after 7-10 years of continuous service with your company. While primarily for permanent staff, long-serving casual employees may also qualify in several states and territories.

The standard provision is approximately 8-13 weeks, varying by state and territory. This can also vary by industry – see how the NSW Government has introduced Portable Long Service for the Community Services Industry.

Community service leave 

In case of jury duty or emergency management activities, employees can access community service leave. When including it in your leave policy, know that it is typically unpaid, except for jury duty, where employees receive payment (though arrangements vary by state). There’s no fixed limit on this leave, but it must be reasonable and connected to legitimate community service, such as volunteering during natural disasters.  

Compassionate leave

A leave policy template should include compassionate leave for when family members face life-threatening illnesses or pass away. Full-time and part-time employees receive 2 paid days per occasion, while casuals get the same unpaid. This leave doesn’t accumulate year to year and can be taken continuously or on separate days.

Family and domestic violence leave 

Your leave policy template should include family and domestic violence provisions. This entitlement gives all employees, including casuals, 10 days of paid leave yearly to attend court hearings, seek medical care, or arrange safe housing when experiencing violence. The leave policy should note that this entitlement renews annually but doesn’t accumulate if unused.

What are leave applications?

Leave applications are formal requests submitted by staff when they need time away from work. The process typically begins with the employee completing a leave request form, specifying the leave type, dates, and reason, and upon completion of the review, the leave is recorded in your payroll system.

Having a standardised process around leave policy ensures consistency, maintains accurate records, and helps with workforce planning. Regular refresher training for managers and HR staff helps maintain compliance and fair application of leave policies.

How can Employment Hero help with leave management and compliance?

If your organisation is struggling with leave management, our Employment Operating System, along with our HR Advisory service can help you create properly documented leave policies that simplify compliance with Fair Work regulations. Our employment software can digitise your leave processes, and protect your business from potential risks, all while supporting your employees’ well-being and work-life balance.

Download the leave policy template to get started. Alternatively, Book a demo and see how our Employment Operating System can streamline your entire employment lifecycle.

Disclaimer: The information in this article is current as at 1 August 2025, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.