Compassionate leave — known in Australian employment law as “paid personal/carer’s leave” — is a fundamental workplace right under the National Employment Standards (NES). Every Australian business, regardless of size, must provide this entitlement. This template helps you build a clear, compliant policy that goes beyond the minimum and genuinely supports your team through difficult times.
Key Takeaways
- The NES provides 10 days of paid personal/carer’s leave per year for full-time employees, accumulating annually.
- Part-time employees receive a pro-rata entitlement based on their ordinary hours.
- Compassionate leave can be taken when a family or household member has a life-threatening illness or injury, or passes away.
- Casual employees are entitled to 2 days of unpaid carer’s leave per occasion.
What This Template Covers
This template provides a complete compassionate leave policy aligned with the Fair Work Act 2009 and the National Employment Standards. It covers paid personal/carer’s leave for full-time and part-time employees, unpaid carer’s leave for casual workers, eligibility for extended unpaid leave, notification requirements, and flexible working arrangements. It is designed for Australian businesses of all sizes.
Compassionate Leave Policy Template
1. Purpose
[Company Name] is committed to supporting employees during times of personal hardship. This policy outlines the compassionate leave arrangements available to employees who need time away from work due to the serious illness, injury, or death of a close family or household member.
2. Scope
This policy applies to all employees of [Company Name], including full-time, part-time, and casual workers, and is consistent with the National Employment Standards under the Fair Work Act 2009.
3. Entitlements Under the NES
Full-time and part-time employees are entitled to:
- 10 days of paid personal/carer’s leave per year (or pro rata for part-time employees based on ordinary hours).
- Leave accumulates from year to year if unused.
- Leave may be taken for the employee’s own personal illness or injury, or for the care or support of a family or household member with a life-threatening illness or injury, or following the death of a family or household member.
Casual employees are entitled to:
- 2 days of unpaid carer’s leave per occasion when a family or household member has a life-threatening illness or injury, or passes away.
4. Who Qualifies as a Family or Household Member?
Under the NES, “family or household member” includes:
- Spouse or de facto partner
- Child, parent, grandparent, grandchild, or sibling of the employee
- Child, parent, grandparent, grandchild, or sibling of a spouse or de facto partner
- A member of the employee’s household
5. When Compassionate Leave Can Be Taken
Employees may take compassionate leave when:
- A family or household member develops or has a worsening of a life-threatening illness or injury.
- A family or household member passes away.
- The employee needs to make arrangements following the death (e.g., funeral planning).
- The employee needs to attend the funeral.
Compassionate leave does not need to be taken on consecutive days. Employees can take it in single-day or part-day increments.
6. Notification Requirements
Employees should notify their manager as soon as practicable, providing:
- The reason for the leave request
- The expected duration of absence
- Evidence where reasonably requested (e.g., medical certificate, death notification, or statutory declaration)
Evidence requirements must be reasonable — for example, requiring a death certificate immediately is not reasonable as certificates can take weeks to issue.
7. Extended Unpaid Leave
Where the 10-day entitlement has been exhausted, or where additional time is needed, [Company Name] will consider requests for extended unpaid leave on a case-by-case basis. Employees may also be eligible for up to 12 months of unpaid family and domestic violence leave or unpaid carer’s leave under the NES, depending on circumstances.
8. Pay and Benefits During Leave
- Paid compassionate leave is paid at the employee’s full rate of pay (including incentive-based payments and bonuses, but excluding overtime, penalty rates, or allowances).
- Employees continue to accrue leave entitlements during paid compassionate leave.
- Public holidays falling during compassionate leave will be treated in accordance with the applicable Award or Enterprise Agreement.
9. Return to Work
[Company Name] recognises that grief and the demands of caring for a seriously ill family member can affect an employee’s capacity to work upon return. The following support will be offered:
- A return-to-work conversation with the employee’s manager
- Consideration of flexible working arrangements or a phased return
- Referral to the Employee Assistance Programme (EAP) where available
10. Policy Review
This policy will be reviewed annually or following changes to the Fair Work Act, NES, or applicable modern awards. Questions should be directed to [HR Contact Name/Email].
Legal Requirements Summary
| Requirement | Detail |
|---|---|
| Legislation | Fair Work Act 2009, Part 2-2 (National Employment Standards) |
| Full-time entitlement | 10 days paid personal/carer’s leave per year |
| Part-time entitlement | 10 days pro rata based on ordinary hours |
| Casual entitlement | 2 days unpaid carer’s leave per occasion |
| Accumulation | Unused leave accumulates from year to year |
| Family member definition | Spouse, partner, child, parent, grandparent, grandchild, sibling, or household member |
| Evidence | Reasonable evidence may be requested |
Customisation Tips
- Offer additional days beyond the NES. Many Australian employers offer 2–3 additional days of paid compassionate leave as an employee benefit.
- Define “household member” more broadly if you employ workers in shared living arrangements (e.g., remote workers in shared housing).
- Include cultural leave provisions. Aboriginal and Torres Strait Islander employees may need additional leave for Sorry Business or cultural mourning obligations.
- Address interrelated leave types. Compassionate leave may overlap with personal/carer’s leave or family and domestic violence leave. Clarify how these interact in your policy.
Common Mistakes to Avoid
- Treating compassionate leave as separate from personal/carer’s leave. Under the NES, these are the same 10-day entitlement — compassionate leave is one of the reasons personal/carer’s leave can be taken.
- Requiring a medical certificate for bereavement. A statutory declaration or funeral notice is reasonable evidence for a death. Do not over-prescribe documentation requirements.
- Forgetting casual employees. Casual workers are entitled to 2 days of unpaid carer’s leave per occasion. This is a legal obligation, not discretionary.
- Requiring leave to be taken consecutively. Employees may take compassionate leave in single days or part days.
- Not accounting for public holidays. Clarify how public holidays interact with compassionate leave days to avoid confusion.
Frequently Asked Questions
Can an employee take compassionate leave for a friend’s death?
Under the NES, compassionate leave is limited to family or household members as defined by the Fair Work Act. A close friend does not qualify unless they are a member of the employee’s household. However, [Company Name] may grant discretionary leave in such circumstances at a manager’s discretion.
Does unused compassionate leave get paid out on termination?
Under the NES, unused paid personal/carer’s leave must be paid out upon termination, except where the employee is dismissed for serious misconduct. This applies to the full accrued balance.
Can an employer request evidence for compassionate leave?
Yes, but the evidence must be reasonable. Requiring a medical certificate for a life-threatening illness or a death certificate immediately after a bereavement is generally not considered reasonable. Acceptable evidence includes statutory declarations, funeral invitations, or letters from medical professionals.
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