Payroll and Benefits Guide Australia – Western Australia

Annual Leave (vacation)

All employees (except for casual employees) get paid annual leave as stipulated by the National Employment Standards (NES) contained in the Fair Work Act. In general, employees are entitled to a minimum of 4 weeks paid leave (5 weeks for shift workers).

The NES also states that if the period during which an employee takes annual leave includes a public holiday or a period of another kind of leave (including sick leave, personal leave, etc.), that time is not regarded as annual leave. Annual leave is paid at the same rate as the regular salary rate, but there may be exceptions within the employee’s award, contract, or workplace agreement with an additional annual leave payment due of up to 17.50%.

In addition, each state in Australia has an entitlement for employees to have long service leave. For Western Australia, it is eight and two-thirds weeks’ leave after ten years of continuous service, with four and one-thirds weeks’ leave for each subsequent period of five years of continuous service.

Paid time off

Under Australia’s National Employment Standards (NES) in the Fair Work Act 2009, annual leave accrues progressively and must roll over year to year – there is no automatic “use-it-or-lose-it” expiry of unused annual leave. Unused annual leave continues to carry forward until taken or paid out on termination. Employers may manage high leave balances (e.g., by directing employees to take leave) where permitted by relevant awards, enterprise agreements, or reasonable business requirements, but they cannot lawfully cancel or forfeit accrued statutory annual leave by a blanket policy.

Public Holidays

When New Year’s Day, Anzac Day, or Christmas Day falls on a Saturday or Sunday the next following Monday is also a public holiday. When Boxing Day falls on a Saturday the next following Monday is also a public holiday, and when Boxing Day falls on a Sunday or Monday the next following Tuesday is also a public holiday. Monday 26 December 2022 is a Boxing Day public holiday and an additional Christmas Day public holiday at the same time.

On 16 December 2021 the Industrial Relations Legislation Amendment Bill 2021 was passed by State Parliament. These included changes to state employment law, making Easter Sunday a public holiday in Western Australia.

* Some regional areas in Western Australia hold the Queen’s Birthday public holiday on a different date.

Sick Days

The NES entitles permanent employees to 10 days of paid sick leave and 2 days of paid compassionate leave per year (personal or carers leave).

An employee may take leave if they are unfit for work because of their own personal illness or injury or provide care or support to a member of their immediate family.

Maternity Leave

See parental leave below.

Paternity Leave

Paternity leave falls under the Paid Parental Leave Act.

Family/Parental Leave

The paid parental leave provides financial support to eligible working parents of newborn or recently adopted children. Parental leave is up to 24 weeks (120 days). The leave may be taken by either parent at the time of birth, adoption, or surrogacy. Each partner is required to take at least 2 weeks. An employee is not entitled to parental leave under the NES unless they have 12 months of continuous service or are a “long-term casual employee.” The casual employee must have been employed regularly and systematically for at least 12 months.

Parental leave is paid by the government at the national minimum weekly wage rate. As of 1 July 2024, 2 weeks of payment will be added to Parental Leave Pay each year to 2026. This will increase the overall length of the Paid Parental Leave scheme by 6 weeks from July 2026.

Employers can also provide for paid parental leave in registered agreements, employment contracts, and workplace policies which do not affect the employee’s eligibility for the Australian government’s paid parental leave scheme so the employee can be paid both.

In addition, employees who have worked for more than 12 months are entitled to at least 12 months of unpaid parental leave if the employee is or will be responsible for caring for a child or adopted child under 16 years old.

Parents who request unpaid leave for a period greater than 12 months will have a stronger right to request an extension of unpaid parental leave. If an employee has already taken 12 months of unpaid leave, they can request a further 12 months of unpaid leave (24 months in total). This is provided that their partner has not already taken 12 months of unpaid leave.

All salary payments are initially made by the employer and later reimbursed by the government.

Other Leave

The NES stipulates that employees are entitled to be absent from work for 3 main reasons, all to undertake community service activities.

1. Paid jury duty. When employees take leave for jury service, they receive jury service pay from the government and employers then top this up to their usual pay for up to 10 days at the rates set at the time.
2. Voluntary emergency management activity (unpaid leave).
3. Activity in community service that the regulations prescribe (unpaid leave).

The leave period includes reasonable travel and rest time prior to and following the eligible activity, and the employee must aim to provide as much prior notice and information as possible.