Professional services firms — accounting practices, law firms, consulting companies, engineering firms, and IT consultancies — operate in a space where the applicable award is often misunderstood. Many professional services employees are covered by the Professional Employees Award 2020, but a significant number are award-free, governed only by the NES and their employment contracts. Knowing which regime applies to each employee is the first compliance step.
This guide covers leave entitlements for the professional services sector in 2026: the Professional Employees Award, the NES baseline for award-free employees, and the compliance considerations that apply across the sector.
Key takeaways
- The Professional Employees Award 2020 covers specific professional employees — but many professional services workers are award-free, governed only by the NES.
- Under the Award, full-time employees receive 4 weeks annual leave with 17.5% leave loading.
- Award-free employees receive the NES minimum of 4 weeks annual leave and 10 days personal/carer’s leave — but no leave loading unless their contract provides it.
- Part-time professional employees receive pro-rata entitlements based on ordinary hours.
- Always verify whether the Professional Employees Award, an enterprise agreement, or the NES alone governs each employee.
The Professional Employees Award
The Professional Employees Award 2020 covers employees of professional services firms — including accountants, engineers, architects, IT professionals, scientists, and consultants — where the employer is not covered by another award or enterprise agreement.
However, the award has specific coverage limitations. Partners in a firm, senior employees above certain salary thresholds, and employees covered by an enterprise agreement are generally excluded. The Fair Work Commission’s coverage determination for each award must be checked against the specific role.
Leave under the Award
For employees covered by the Professional Employees Award:
- Annual leave: 4 weeks (152 hours for a 38-hour week), accruing progressively
- Leave loading: 17.5% on the base rate of pay
- Personal/carer’s leave: 10 days per year, accruing progressively
- Compassionate leave: 2 days per occasion
- Family & domestic violence leave: 10 days per year
The “greater of” provision for leave loading applies — the employee receives whichever is higher: the 17.5% loading or the penalty rates they would have earned if working during the period. For professional employees who work some weekends, this comparison matters.
Worked example
Rachel is a junior accountant at a mid-tier firm, earning $32.00/hour base rate under the Professional Employees Award.
- One week of annual leave base pay: 38 hours × $32.00 = $1,216.00
- Leave loading at 17.5%: $1,216.00 × 17.5% = $212.80
- Total leave pay for one week: $1,216.00 + $212.80 = $1,428.80
Award-free employees
A significant portion of the professional services workforce is award-free. These employees are governed by the NES and their employment contract. The key differences from award-covered employees:
| Entitlement | Award-covered | Award-free (NES only) |
|---|---|---|
| Annual leave | 4 weeks + leave loading | 4 weeks (no leave loading unless contract provides it) |
| Personal/carer’s leave | 10 days | 10 days |
| Compassionate leave | 2 days | 2 days |
| Long service leave | State-based | State-based |
| Flexible working | Award provisions | NES right to request |
Award-free employees do not receive leave loading unless their employment contract specifically provides for it. This is a common differentiator between award-covered and award-free employment packages.
Personal/carer’s leave
Under both the Award and the NES, full-time employees receive 10 days per year of paid personal/carer’s leave, accruing progressively and accumulating year to year. Part-time employees receive pro-rata entitlements.
Professional services-specific considerations:
- Flexible working arrangements may affect when and how leave is taken
- Evidence requirements commonly include medical certificates or statutory declarations
- The employer can request evidence but must not impose excessive requirements
- Some professional services firms have internal policies on evidence that go beyond the legal minimum
Compassionate leave and family leave
All professional services employees receive 2 days compassionate leave per occasion and 10 days paid family and domestic violence leave per year, under both the Award and the NES.
Long service leave
Long service leave is state-based:
| State | Qualification | Entitlement |
|---|---|---|
| Victoria | 7 years | 8.67 weeks; 4.33 weeks per subsequent 5 years |
| NSW | 10 years | 2 months; 1 month per subsequent 5 years |
| Queensland | 10 years | 8.67 weeks; 4.33 weeks per subsequent 5 years |
| South Australia | 10 years | 13 weeks |
Professional services firms with offices in multiple states must track state-specific entitlements separately.
Cashing out and termination
During employment, annual leave can be cashed out only if the applicable award or enterprise agreement permits it. The employee must retain a minimum 4-week balance, and each cash-out requires a separate written agreement.
On termination, all accrued unused annual leave must be paid out regardless of the reason. Leave loading on termination depends on the applicable instrument — the Award, enterprise agreement, or employment contract.
Common compliance traps in professional services
1. Applying the award when the employee is award-free
Not all professional services employees are covered by the Professional Employees Award. Applying award provisions (including leave loading) to award-free employees creates incorrect calculations, and conversely, applying only the NES to award-covered employees underpays them.
2. Missing leave loading for award-covered employees
Leave loading of 17.5% is a mandatory award provision. Failing to pay it for award-covered employees is a systemic underpayment.
3. Not providing leave loading to award-free employees
While the NES does not require leave loading, many professional services employment contracts provide it. Failing to pay leave loading when the contract requires it is a breach of contract.
4. Incorrect part-time accrual
Part-time professional employees — particularly common in modern flexible working arrangements — must receive pro-rata leave. When hours change, entitlements must be recalculated.
5. Confusing enterprise agreements with the award
Some larger professional services firms have enterprise agreements that sit above the award. Applying the award when an enterprise agreement governs creates incorrect entitlements.
Putting it into practice
Five checks cover most professional services leave compliance:
- Verify whether the Professional Employees Award, an enterprise agreement, or the NES alone governs each employee.
- Pay leave loading for award-covered employees and check employment contracts for award-free employees.
- Calculate pro-rata leave for part-time employees and recalculate when hours change.
- Track long service leave entitlements across multiple states.
- Include leave loading in termination payouts where the applicable instrument requires it.
Whether an employee is award-covered or award-free — and which instrument applies — is the critical first question in professional services leave compliance. A leave management system that flags the correct governing instrument for each employee eliminates the most common source of underpayment risk in the sector.
Sources
- Professional Employees Award 2020 — Fair Work Commission
- Annual leave — Fair Work Ombudsman
- National Employment Standards — Fair Work
- Long service leave — Fair Work Ombudsman
Last updated: 26 July 2026. This article is general guidance, not legal advice. Confirm current award coverage and employment terms with the Fair Work Ombudsman or an employment lawyer.
Frequently asked questions
Does the Professional Employees Award apply to all professional services workers?
No. The award covers specific professional employees where the employer is not covered by another award or enterprise agreement. Partners, senior employees above certain thresholds, and those covered by enterprise agreements are generally excluded. Always verify coverage.
Do award-free professional employees get leave loading?
Not automatically. The NES does not require leave loading. Award-free employees receive it only if their employment contract specifically provides for it. Many professional services contracts do include this provision.
How much annual leave do professional services employees get?
Under both the Award and the NES, full-time employees receive 4 weeks (152 hours on a 38-hour week). Part-time employees receive pro-rata entitlements based on their ordinary hours.
What is the difference between award-covered and award-free employees?
Award-covered employees receive all award entitlements including 17.5% leave loading. Award-free employees receive only the NES minimums (no leave loading unless their contract provides it) and are governed by their employment contract terms.
Do professional services employees get long service leave?
Yes. Long service leave is state-based legislation and applies to all employees regardless of award coverage. Entitlements vary by state — Victoria has the lowest threshold at 7 years, while most other states require 10 years.