Employers: Know the Fine Details of Leave Entitlements & Public Holidays

Time off is essential for everyone's health and well being. When employees have had a break from work, they come back more focused and productive. Understanding the different types of leave and holidays and the rules around them can help you better manage leave for your staff and keep them happy.

Annual leave Employees take annual leave for rest, recreation, or other personal reasons. Certain conditions apply on when employees become entitled to annual leave, and employment law sets the minimum number of annual leave days that an employee is entitled to. As an employer, you can give your employees extra annual leave days on top of the minimum as an added benefit. Payment for annual leave is usually at the rate of daily pay, but it may also depend on other rules prescribed by employment law.

Sick leave Employees can take sick leave if they’re injured or unwell, or to care for a dependant who’s injured or sick. Employment law states the minimum number of sick leave days that an employee is entitled to, but you can give them more as an added benefit. Payment for sick leave is at the rate of daily pay.

Public holidays Public holidays are considered paid leave, and employees are entitled to take the day off during those days. If employees have to work on public holidays, you must pay them at the rate required by law (which may be different from their daily pay).

Other types of leave Employees may be entitled to other types of leave such as bereavement leave, parental leave, jury duty, and more. They may also ask to take unpaid leave, and it’s up to you as an employer to allow this or not. Consider your employee’s reasons and discuss the best approach with them. Keep an accurate and up-to-date record of your employees’ leave. Good payroll software can help do that for you.

Do you need any help staying on top of payroll and bookkeeping for your business? Get in touch and see how we can help. Call the office on 02 4402 8913 or email

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Professional Shoalhaven Bookkeeping Service

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