The difference between personal leave and annual leave in Australia

Have you ever needed time off to care for a loved one, but were unsure whether to take sick, personal or annual leave? You’re not alone. Many people find the difference between their leave entitlements confusing, especially when the line between sick leave and personal leave isn’t clear.

Understanding the difference between personal and annual leave can help you manage your time off wisely and maximise your workplace entitlements. Knowing your rights under Australian workplace laws also means you’ll know how to handle your leave when illness strikes, a family emergency arises, or you simply need a break to recharge.

In this guide, we break down what personal leave means, how it’s different from other types of leave, and what you can (and can’t) use it for. We also give you practical tips, and real-world scenarios to illustrate when to use different types of leave.

What is personal leave?

Under the National Employment Standards (NES) in Australia, personal leave is a workplace entitlement that includes:

• Sick leave, for when you’re unwell or injured and can’t attend work

• Carer’s leave, for when you need to care for or support a member of your immediate family or household

For example:

• If you’re battling a nasty cold and aren’t feeling well enough to work, you can take personal leave.

• If your child has a fever or your partner has a sudden health emergency, you can use personal leave to care for them.

• If you’re suffering from stress or anxiety and need to take a day off to see a health professional, this qualifies as personal leave.

To stay up to date with your personal leave days, keep a personal record or use your organisation’s HR system to track your leave accruals. If you’re unsure how to check, reach out to your HR department, if you have one, for help navigating the system. 

It’s best to keep documentation such as a medical certificate or appointment confirmation, especially if your employer requires proof to support your leave request. 

Who is eligible for personal leave?

Under the NES:

• Full-time employees are entitled to 10 days of paid personal leave each year.

• Part-time employees accrue personal leave on a pro-rata basis, based on their ordinary hours of work.

• Casual employees are not entitled to paid personal leave, but they may be eligible for unpaid carer’s leave. Some casual employees receive leave loading that is intended to cover any unpaid leave they need to take.

To determine your exact entitlement, calculate it based on your contracted hours and check your payslip or HR platform. If the numbers don’t add up, raise it with your manager or HR for clarification.

Here’s an example of how personal leave might differ per employee: 

Amanda works full-time in Melbourne. She receives 10 days of personal leave annually. Her part-time colleague Tim, who works three days a week, earns personal leave based on his hours and accrues about six days per year. When Tim’s elderly father fell ill, he used one of those accrued days to take him to the hospital and stay by his side.

What can you use personal leave for?

You can use personal leave when you’re ill or injured and unable to work safely. You can also use it to care for an immediate family or household member who is sick, injured, or dealing with an emergency.

This includes both physical and mental health conditions. For instance:

• You’re dealing with chronic back pain and need time off to recover.

• Your child has a stomach bug and you need to care for  them at home.

• Your partner has injured themselves and requires your help.

• A flatmate has an allergic reaction and you need to take them to the hospital.

To prepare for these instances, make sure you can easily access your manager’s or HR’s contact information. Check your company’s policy on what time you need  to notify your manager you’re taking a day off, so it’s not registered as a ‘no show’. If you need to step away from work urgently, make a quick call or send a message to your supervisor as soon as possible, even if you plan to submit your leave form later.

Note that personal leave isn’t meant to be for holidays or planned breaks. Time off for travel or rest comes out of your annual leave.

Can you use personal leave for a funeral?

Yes, but there is a more appropriate option. While personal leave can be used for emotional distress or to care for someone, Australian workers are also entitled to compassionate leave, or bereavement leave.

You can take two days of paid compassionate leave for the death of an immediate family member (or their unexpected serious injury or illness, or miscarriage/stillbirth.) This is separate from personal leave, and instances per year are not limited, nor do you have to take the two days in a row Speak with your manager or HR team to confirm whether the leave will be recorded as compassionate or personal leave, and arrange for any required documentation upfront to avoid any delays.

Say one of your grandparents passes away. You can contact your manager to request two days of paid compassionate leave, to attend the funeral and be with your family.

How much personal leave per year can you get?

Under the NES, full-time employees are entitled to 10 days of paid personal leave per year. This leave accrues progressively based on your ordinary hours of work. To calculate your accrual, multiply your weekly hours by 10 and then divide by 38 to get the full-time equivalent. Or, check your leave balance on your payslip or online portal.

Say you work full-time, 38 hours a week. You accrue around 1.46 hours of personal leave per week, totaling 76 hours or 10 days annually.

Part-time employees, on the other hand, accrue personal leave on a pro rata basis. If you work 20 hours a week, you would accrue 5 days of paid personal leave each year. 

Personal leave rolls over from year to year if unused. Once you use up your paid personal leave, you may still take unpaid personal leave under certain conditions. When you leave your job, your employer will not pay out your unused personal leave, unlike annual leave.

To avoid surprises, review your balance quarterly and factor it into your career planning, especially if you plan to take time off. If something looks off, don’t hesitate to reach out to your payroll or HR departments for a breakdown.

Step-by-step guide: How to apply for personal leave

Application processes vary depending on your workplace – it’s always a good idea to know what your company’s policy is. In smaller companies, it could be a phone call or email to your manager. Larger organisations may use online HR portals.

Here’s a general step-by-step guide:

Step 1: Notify your manager or HR department by phone or email as soon as possible, preferably before your shift starts. Set a reminder or save contact numbers to make it easier.

Step 2: Briefly explain the reason for your absence and your expected return date. Be honest but concise. For example, “I’m experiencing severe migraines and need to take today off to rest. I expect to return to work by Thursday.”

Step 3: If your company has a payroll/HR platform, submit a leave request through this system, whether that’s an email, a spreadsheet, or an online portal

Step 4: Provide evidence if needed, such as a doctor’s certificate or statutory declaration. Some workplaces require it even for a half-day off, so check your workplace policy in advance.

Here’s a handy template that you can save in your draft emails. Adapt it and send it quickly when you need to file a personal leave request.

What is annual leave, and how does it differ from personal leave?

Annual leave, also known as holiday leave, is time off work taken for rest and relaxation. Under the NES, full-time employees are entitled to four weeks of paid annual leave per year. This is separate from personal leave and accrues progressively.

Annual leave vs personal leave: What’s the difference?

You can plan your annual leave strategically. For example, requesting days between national holidays lets you use less leave to get a full week off.  

Here’s another example of how to use annual leave strategically:

Arjun is planning a trip to Fiji. He applies for annual leave. A day before the trip, he gets the flu and can’t travel. With a doctor’s certificate, he adjusts the date of his trip and switches his leave days from annual to personal leave, allowing him to fully recover before taking his trip slightly later.

Common rules and entitlements around personal leave in Australia

The NES rules apply nationally, but your employment contract may offer additional leave benefits.

If you fall sick during your annual leave, you can usually convert those days to personal leave. Contact your manager or HR team immediately and provide a medical certificate to switch those days to personal leave. 

Say you booked annual leave for a five-day family holiday. However, you ended up in the hospital for three of those days. You can provide a medical certificate and request to switch those three days to personal leave. 

Personal leave accrues with no cap and rolls over annually. Keep records of your accrued personal leave and check regularly for discrepancies. However, unlike with annual leave, your employer will not pay our unused personal leave when your employment ends. You can set up an email folder to store medical certificates and leave communications for easy access during performance reviews or pay disputes.

Tips to manage your leave entitlements effectively

Whether it’s personal or annual leave, here’s how you can use your your entitlements more strategically:

Track your accruals yourself, as well as through your payroll or HR system

Set a reminder to check your leave balance, so you know how much you can use when needed. This helps you plan ahead for medical appointments or time off. Keep track of this in your own records as well, so you have an offline backup. Plan your annual leave

Mark holiday periods on your calendar, such as school holidays or busy work periods. Talk with your manager early to secure time off and get in your leave requests well in advance to boost your chances of approval. 

Use your personal leave when you need it

Don’t feel obligated to work through illness if you need to rest and recuperate. If you’re unsure whether your symptoms warrant taking time off, speak to your GP or even a pharmacist. Also, check with your workplace so you know when to provide evidence of illness. If uncertain, ask your manager or HR team about your workplace’s policy on requiring medical certificates.

Refer to your employment contract for specific rules

Your employment contract may include additional leave entitlements. Download a copy or bookmark it on your computer and pay attention to clauses about leave notice periods and payout conditions.

Check trusted resources for more information 

Check out the Fair Work Ombudsman’s website for up-to-date information on national workplace rights. You can also use this as reference to calculate your entitlements.

Real-life scenarios: Which leave should you take?

Understanding the difference between annual leave and personal leave is essential to getting the best out of your leave entitlements. While annual leave is for your planned getaways and relaxation, personal leave is there for the unexpected , whether it's illness, injury, or a family emergency.

Be sure to check your employment contract for specific details, and visit the Fair Work Ombudsman’s website or SEEK Career Advice for more guidance.

FAQs

Can I take personal leave for mental health reasons? 

Yes, you’re entitled to use personal leave to take care of your mental health. This includes anxiety, depression, burnout, or other psychological conditions that affect your ability to work. You can treat it the same way as personal leave for physical health conditions. 

If required, your health professional can provide a medical certificate or letter explaining your need for time off.  Your doctor doesn’t need to provide details, they just need to issue a generic medical certificate that says you need time off to recover. .

Do I need a medical certificate for a one-day absence? 

This depends on your workplace policy. Some employers may request a medical certificate for less than one day off, while others only require it after two or more days. 

It’s best to check your company’s leave policy in your employee handbook or with your HR department. If you can’t get to a doctor, some workplaces also accept statutory declarations.

What happens to unused personal leave when I leave my job? 

In most cases, employers don’t pay out any unused personal leave when you resign, retire, or if your contract is terminated. This is different from annual leave, which companies usually pay out when your employment ends. 

That’s why it’s a good idea to use your personal leave when you need to rest or care for someone, rather than letting it accumulate. Don’t let your leave entitlements go unused if it means working while you’re sick.

Can I be disciplined for using too much personal leave? 

No, employees are protected against punishment for taking sick leave.. However, if you’re absent too frequently, your employer might raise concerns about your performance or attendance. 

If you’re dealing with a chronic condition, consider discussing it with your manager or HR department. You may be able to negotiate flexible working arrangements or a formal support plan for your condition.

What’s the difference between personal leave and compassionate leave? 

Personal leave is for when you’re sick or need to care for an ill or injured family or household member. Compassionate leave, on the other hand, is specifically for when a close family member has died or suffered a life-threatening illness or injury, or if you have experienced a miscarriage or stillbirth. Compassionate leave entitles you to two paid days off per occasion. It’s a separate entitlement from your personal leave.However, both types of leave may require supporting evidence, such as a death certificate or a hospital report.