Understanding Personal Leave vs Annual Leave in Australia

Jo Sutton

Posted 16 December 2022

Under the National Employment Standards in Australia, employees are entitled to personal leave as a leave of absence, regardless of their employment contract. Employees are also entitled to Annual Leave - the two types of leave are for different reasons that are not always clear.

There are several types of employee leave and rules and legislation governing each kind of leave. Managing employee leave can be challenging.

Read more on leave types, reasons for taking leave, applying for leave and some answers to common questions.

What is Personal Leave?

Full-time employees are entitled to 10 days of personal leave per year; for part-time employees, Personal Leave is calculated on a pro-rata basis.

An employee's personal leave makes up 1/26th of their working hours. Unused personal leave in a year carries over to the next year (except for Family and Domestic Violence Leave).

In the following circumstances, permanent workers are eligible for paid Personal Leave:

Sick Leave: Employees take sick leave if they cannot work due to illness or injury, including sickness caused by pregnancy.
Carer's Leave – Employees take carer's leave if they need to take care of an immediate family member or household member who is injured, ill, or has an emergency.

Unpaid Personal Leave Casuals are also able to get 2 days of unpaid personal leave. Full and part-time employees may also access this unpaid leave, per occasion, if they have exhausted their paid leave entitlement.

Employees should provide notice to the employer as soon as reasonably practicable to be eligible for personal leave. Employers may grant the leave and ask for evidence to justify why the employee needs to leave.

What is Annual Leave?

Full-time employees are entitled to four weeks of Annual Leave, while part-timers are entitled to pro-rata leave. Shift workers are an exception and may be entitled to five weeks of Annual Leave.

Personal Leave vs Annual Leave: What's the difference?

Annual Leave vs Personal Leave - both types are time off work. Both leave types need to be requested by the employee, and the employer approves the leave and keeps a record of leave taken and the type of leave taken. Numerous factors, including company leave policies, affect Annual and Personal Leave.

What's the difference between Annual Leave and Personal Leave?

Annual Leave and Personal Leave differ primarily in their purpose. Unlike Annual Leave, Personal Leave is taken for reasons such as illness or injury of themselves or a family member. Employees usually accumulate a standard number of Annual Leave days as per their employment contract. An employee's number of Personal Leave days varies depending on their needs.

Annual leave is generally paid time off work that the employer has approved. The reason for taking annual leave is to have a break from work.
Personal leave is taken when the employee is unwell, injured, or on carer's leave or a family emergency. Personal Leave is usually unplanned.

How to ask for Personal or Annual Leave of absence.

Annual Leave accumulates based on the employee's working hours. Employees must request Annual Leave, and have it approved before they take time off work.

Personal Leave accumulates based on the employee's working hours, the same as annual leave, but Personal Leave is limited to 10 days a year for a full-time employee and pro rata for a part-time employee.

How an employee requests leave is generally covered in the onboarding process when they start with the company. A modern workforce management solution utilises a mobile app to complete Annual and Personal Leave requests. The mobile app also allows employees to check their leave balances, request leave, and view Leave accruals. Once the employee submits the leave request, their manager is notified and can approve or decline the leave. With notifications in real-time, the employer and employee experience is quick, easy, and streamlined, saving time on administration.

For Personal Leave, the employer may request evidence of why the employee needed the leave. If the employee fails to provide satisfactory proof, the employee may not be entitled to Personal Leave, and the employer may not approve the leave. In the employee's contract, it may stipulate evidence is required for Personal Leave. An example of evidence is a medical certificate from the employee's doctor or a statutory declaration.

What are some valid reasons for taking leave?

There are numerous reasons an employee could and should take leave. Let's explore the most common types of leave.

Personal illness - Employers prefer that employees stay away from work when they're sick, especially if they have a contagious illness. Taking Personal Leave prevents spreading the contagion to others and lets the employee rest and recuperate.

Family illness - Employees that care for family members often need to take personal or carers leave to care for an unwell family.

Annual Leave - Mental health is integral to our overall well-being. Taking Annual Leave to relax, and spend time with family or friends is a good way to recharge.

The State of Workplace Mental Health in Australia reported, 'One in five Australian employees report that they have taken time off work due to feeling mentally unwell in the past 12 months.'

The well-being of employees has a significant impact on business performance, a company's reputation, and its brand, which can result in negative perceptions which affect talent attraction.

Compassionate Leave - Employees take compassionate leave when they have an immediate member of their family or household pass away.

Parental Leave - Employees responsible for the care of a child may take parental leave when the child is born or adopted.

Family and Domestic Violence Leave - Every employee in Australia has the right to take a leave of absence for family and domestic violence.

Long Service Leave- An employee who has worked for the same employer for several years is entitled to long service leave. Depending on the Australian State the entitlement varies.

What happens if an employee moves from one type of leave to another?

Employees may use Personal Leave instead of Annual Leave if they are sick or injured whilst on Annual Leave. For record keeping and accurate payroll, the employer must deduct the Personal Leave from the employee balance and credit the Annual Leave.

Employees need to contact their employer to notify them of the change in leave type and may need to provide evidence if the employer requests it. The Fair Work website has information on notice requirements and medical certificates.

What if the employee doesn't have enough Personal Leave?

If the employee does not have sufficient Personal Leave to cover the absence, there are a couple of options; the employee can continue with the Annual Leave or take unpaid leave.

Resources:

Fair Work Australia has several downloadable fact sheets on all leave types:

Due to the variety of leave types and the rules and legislation governing each one, managing leave can be challenging. Talk to a specialist today for more information on The Access Workforce Management solutions.

Additional Annual Leave & Personal Leave FAQs.

What is Annual Leave?	Paid time off work approved by your employer is called Annual Leave. Most people take Annual Leave to have a break from work.
What is Personal Leave?	An employee takes Personal Leave if they are unwell, injured, on carer's leave, or dealing with an emergency in the family. Personal Leave of absence is usually unplanned.
What is the definition of Personal Leave?	The definition of Personal Leave is leave taken when an employee is unwell or injured to recuperate.
What are the sick leave rules in Australia?	Full-time and part-time employees are entitled to personal or carer's leave (often called sick leave). As with Annual Leave, personal or carer's leave accrues based on an employee's ordinary hours of work and begins accruing on the first day of employment. Full-time employees are entitled to 10 paid personal or carers leave per year and part-time employee’s entitlements are the pro-rata equivalent. In general, personal or carer's leave will not be paid out upon termination of employment, unless otherwise stated in the employee's contract, Modern Award, or Enterprise Agreement.
How much Personal Leave can an employee have per year?	An employee who is full-time is entitled to 10 days of paid personal/ carers leave per year, and part-time employees receive a prorated entitlement of personal/carer's leave.
Does Personal Leave accrue?	Employees earn Personal Leave progressively, which means that they accumulate leave based on the amount of time they work.
What is the Personal Leave limit in Australia?	Personal Leave entitlements in Australia are 10 days of paid Personal Leave for full-time employees per year and for part-time employees, the entitlements are prorated based on the hours worked.
What is the difference between Annual Leave & Personal Leave?	It is primarily their purpose that differentiates Annual Leave from Personal Leave. Employees take Personal Leave when they are sick or injured, or when their family member is sick or injured. Employees take Annual Leave to go on holiday to recharge and relax.
What is the full-time Employee Personal Leave Entitlements?	Personal leave entitlements for full-time employees in Australia are 10 paid days that accrue throughout the year.
How many days of Carers Leave is an employee entitled to?	Carer's leave is not separate from Personal Leave - the only difference is what the employee uses the Personal Leave for. In Australia, full-time employees have a right to 10 paid days of Personal Leave that accrues throughout the year, an employee can use this as carer's leave or sick leave.
Do you get paid for Carer’s leave?	Personal Leave can be used as sick leave or carer's leave. If an employee has sufficient Personal Leave to cover the time they need off work, then this is paid leave.
Does personal leave accrue from year to year?	Personal Leave accrues based on the amount of time an employee works and has been employed in the company. The maximum an employee can accrue per year is 10 days and any unused Personal Leave is carried over to the next year.
What is the accrual of Personal Leave?	Employees accrue earn Personal Leave progressively, which means that they accumulate leave based on the amount of time they work and have been employed in the company. The maximum they can accrue per year is 10 days.
Can you use Annual Leave as Sick Leave?	Employees who do not have enough Personal Leave to cover the absence can use Annual Leave instead or take the time off as unpaid - this is at the discretion of the employer.
What are the full-time employee's sick leave entitlements?	Full-time employees in Australia have a right to 10 paid days of Personal Leave that they can use for caregiving or sick leave.