Leave Entitlements for Full-Time vs Part-Time Employees in Australia

A common misconception is that part-time employees get less leave than full-time employees. In Australia, this is incorrect. Part-time employees are entitled to the same proportion of leave as full-time employees, calculated on a pro-rata basis. However, the calculation and payment methods differ, and many employers make mistakes when working out part-time leave entitlements.

This guide explains how to correctly calculate leave for part-time employees and clarifies the differences between full-time and part-time leave entitlements.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult an employment lawyer for guidance specific to your organization.

The Core Principle: Pro-Rata Entitlements

The National Employment Standards and most modern awards provide leave entitlements on a pro-rata basis for part-time employees. This means:

• If a full-time employee works 38 hours/week and gets 4 weeks annual leave
• A part-time employee working 19 hours/week gets: 4 weeks × (19 ÷ 38) = 2 weeks of annual leave

This is the same entitlement rate, just adjusted for the hours worked.

Annual Leave: Full-Time vs Part-Time

Full-Time Employees

Entitlement: 4 weeks per year (52 weeks of employment)

This equates to:

• 4 weeks × 38 hours/week = 152 hours per year
• Or: 2.92 hours per week accrual

Payment: Ordinary rate of pay (base + regular allowances)

Example: Full-time employee earning $50/hour takes 1 week of annual leave:

• Payment: 1 week × 38 hours × $50 = $1,900

Part-Time Employees

Entitlement: 4 weeks pro-rata (based on ordinary hours)

For a part-time employee working 20 hours/week:

• 4 weeks × 20 hours/week = 80 hours per year
• Or: 1.54 hours per week accrual

Payment: Ordinary rate of pay (same as full-time)

Example: Part-time employee earning $50/hour, working 20 hours/week, takes 1 week of annual leave:

• Payment: 1 week × 20 hours × $50 = $1,000

The part-time employee gets paid less per week because they work fewer hours, but they’re entitled to the same proportion of leave.

Personal Leave: Full-Time vs Part-Time

Full-Time Employees

Entitlement: 10 days per year

This equates to:

• 10 days × 38 hours/day = 380 hours per year
• Or: 1.923 hours per week accrual

Part-Time Employees

Entitlement: 10 days pro-rata (based on ordinary hours)

For a part-time employee working 20 hours/week (assumed to work 5 hours/day, 4 days/week):

• 10 days × 5 hours/day = 50 hours per year
• Or: 0.962 hours per week accrual

The part-time employee accrues personal leave at half the rate of a full-time employee because they work half the hours.

However, if a part-time employee is sick, they still use personal leave for that day. A 5-hour day of personal leave is deducted from their balance.

Defining “Ordinary Hours”

The key to calculating pro-rata leave correctly is defining an employee’s “ordinary hours.” This is:

• The hours the employee is contractually required to work per week
• Not including overtime or irregular work
• Specified in the employment contract

Examples:

• Full-time: 38 hours/week (ordinary hours)
• Part-time: 20 hours/week (ordinary hours)
• Casual: No fixed ordinary hours, but hours worked in the period are used

If the contract says an employee works 20 hours/week but they regularly work 25 hours, the “ordinary hours” are still 20 (unless you agree to change the contract).

Parental Leave: Full-Time vs Part-Time

Entitlement: 12 months of unpaid parental leave

Parental leave is not pro-rata. Both full-time and part-time employees are entitled to 12 months (not a proportion based on hours worked).

However, if an employee wants to return to work part-time after parental leave, they can negotiate flexible work arrangements.

Example: A part-time employee working 20 hours/week takes 12 months of parental leave, then returns part-time at 15 hours/week. This is flexible and should be accommodated.

Public Holidays: Full-Time vs Part-Time

Full-Time Employees

If a public holiday falls on an ordinary working day (e.g., Monday), the employee is entitled to paid leave.

Payment: Ordinary rate of pay × 38 hours = 1 week’s pay

Example: Full-time employee earning $50/hour, ANZAC Day falls on Monday:

• Payment: 38 hours × $50 = $1,900

Part-Time Employees

If a public holiday falls on an ordinary working day, the employee is entitled to paid leave.

Payment: Ordinary rate of pay × ordinary hours for that day

Example: Part-time employee working 20 hours/week, with ordinary days being Monday and Wednesday. ANZAC Day falls on a Monday:

• Ordinary hours for Monday: 10 hours (half of the 20 hours/week)
• Payment: 10 hours × $50 = $500

If a public holiday falls on a non-working day, part-time employees are not entitled to a day in lieu unless the award specifies.

Long Service Leave: Full-Time vs Part-Time

Long service leave is pro-rata for part-time employees.

Full-Time: 13 weeks after 10 years (in most states) Part-Time: 13 weeks pro-rata (13 weeks × ordinary hours)

For a part-time employee working 20 hours/week:

• 13 weeks × 20 hours = 260 hours of long service leave after 10 years
• Or: 26 weeks of ordinary part-time work

Common Mistakes with Part-Time Leave

1. Paying Full-Time Leave Rates to Part-Time Employees

Some employers calculate part-time leave as if the employee works full-time:

❌ Wrong: Part-time employee working 20 hours/week takes 1 week annual leave → paid 38 hours × $50 = $1,900 ✅ Right: Part-time employee working 20 hours/week takes 1 week annual leave → paid 20 hours × $50 = $1,000

2. Not Adjusting for Changing Hours

If a part-time employee’s hours change during the year, you must adjust their leave accrual accordingly.

Example: An employee works 20 hours/week for 26 weeks, then increases to 25 hours/week for 26 weeks:

• Annual leave accrued: (20 hours × 26 weeks) + (25 hours × 26 weeks) = 1,170 hours
• Equivalent weeks: 1,170 ÷ 38 = 30.79 weeks of “annual leave”
• Or just calculate as: (20 × 26 weeks + 25 × 26 weeks) ÷ 52 weeks = 22.5 hours/week avg × 4 weeks = 90 hours earned

This is complex; a leave management system helps.

3. Refusing Part-Time Leave

Some employers assume part-time employees don’t get leave or get minimal leave. This is incorrect and non-compliant.

4. Not Tracking Accrual Correctly

Part-time leave must be tracked as carefully as full-time leave. Use a leave management system to avoid manual calculation errors.

5. Applying the Wrong Rate to Part-Time Personal Leave

Personal leave is pro-rata, but many employers don’t update their leave management systems to reflect part-time accrual rates.

Calculating Part-Time Leave (Examples)

Example 1: 20 Hours/Week Employee

Annual Leave:

• Entitlement: 4 weeks × 20 hours = 80 hours/year
• Accrual: 80 hours ÷ 52 weeks = 1.54 hours/week

Personal Leave:

• Entitlement: 10 days × 20 hours/week ÷ 38 hours/week = 5.26 days/year
• Or: 10 days × (20 ÷ 38) = 5.26 days/year

Annual Leave Taken (1 week):

• Hours used: 20 hours
• Payment at $50/hour: $1,000

Example 2: 30 Hours/Week Employee

Annual Leave:

• Entitlement: 4 weeks × 30 hours = 120 hours/year
• Accrual: 120 hours ÷ 52 weeks = 2.31 hours/week

Personal Leave:

• Entitlement: 10 days × (30 ÷ 38) = 7.89 days/year

Annual Leave Taken (1 week):

• Hours used: 30 hours
• Payment at $50/hour: $1,500

Part-Time Employee Rights

Part-time employees have the same rights as full-time employees:

• Right to take leave: Cannot be denied unreasonably
• Right to be paid correctly: Must be paid at the ordinary rate for all leave
• Right to flexibility: Can request part-time arrangements, including after parental leave
• Right to fair dismissal: Same protections as full-time employees
• Right to equal treatment: Cannot be discriminated against for being part-time

Key Takeaways

• Part-time employees are entitled to the same proportion of leave as full-time employees
• Leave is calculated pro-rata based on ordinary hours
• A part-time employee working 20 hours/week gets 2 weeks annual leave, not 4
• Payment is at the ordinary rate of pay (same as full-time), but less total dollars because they work fewer hours
• Parental leave is not pro-rata — it’s 12 months for everyone
• Public holidays are paid for ordinary working days only
• Track part-time leave carefully; calculations can be complex with changing hours

Using a leave management system that handles pro-rata calculations automatically ensures compliance and reduces errors.

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