--- title: "Australia Working Time and Leave 2026 | Hours, Leave" description: "Australia 2026: 38 hours ordinary week, 20 days annual leave on top of public holidays, 10 days paid personal leave, parental pay expands July 2026." canonical: https://www.teamed.global/country-hiring-guides/australia/working-time-and-leave --- Australia · Working time child Served by Teamed-owned entity: Teamed Australia Pty Ltd, Sydney # How do *Australia working time and leave* rules work in 2026? Australia caps the ordinary week at 38 hours under the Fair Work Act. Annual leave is 20 days on top of public holidays, not bundled with them. From 1 July 2026, government-funded parental pay expands to 26 weeks, shareable between both parents. Last reviewed 13 June 2026 · Australia guide ![Sydney Opera House and harbour at dawn, viewed from the water.](/images/country-guides/australia-working-time-and-leave.webp) Illustration · Sydney, Australia Answer.cite this Australia's working time rules come from the Fair Work Act 2009 and the National Employment Standards. The ordinary hours limit is 38 hours per week. Employers can ask for reasonable additional hours. There is no individual opt-out mechanism as exists in the UK. Annual leave is 20 days per year. It sits on top of public holidays, not bundled with them. From 1 July 2026, government-funded Parental Leave Pay expands to 26 weeks and is fully shareable between both parents. ![A sun-lit open-plan office in an Australian city with workers at standing desks.](/images/country-guides/australia-working-time-and-leave-polaroid-1.webp) 38 hours ## What is the Australia working-time limit? The limit is 38 hours of ordinary time per week for full-time employees. Employers can ask for additional hours on top of that. Those extra hours must be reasonable. There is no opt-out agreement that removes the cap, unlike the UK. The rules come from the [Fair Work Act 2009](https://www.legislation.gov.au/Details/C2009A00028), specifically the National Employment Standards (NES). The 38 hours cap applies to ordinary time only. Reasonable additional hours above that cap are permitted. ### What makes extra hours reasonable? The Fair Work Act lists factors the employer and employee must weigh: - The employee's personal circumstances, including family responsibilities - Whether additional pay is being provided - Whether the employee was consulted before the hours were required - Health and safety implications - The operational needs of the business Employees can refuse extra hours that are genuinely unreasonable. An employee cannot be dismissed or disadvantaged for making that refusal. ### Modern awards and enterprise agreements Most employees in Australia are covered by a modern award or an enterprise agreement that sits on top of the NES. Those instruments often set penalty rates for overtime, specify daily span-of-hours limits, and may define rostering rules that effectively constrain how far above 38 hours an employer can realistically ask someone to work. The NES is the floor; the award or agreement can only improve on it. Part-time employees have their ordinary hours set by their employment contract, and any hours above that contracted figure are treated as overtime under the relevant modern award. ## What rest periods are Australia workers entitled to? The NES does not set a single national minimum daily rest period the way the UK Working Time Regulations do. Rest break entitlements are set by modern awards and enterprise agreements. Most awards require at least a 30-minute unpaid meal break after no more than 5 consecutive hours of work. | Rest entitlement | Source | Typical standard | | --- | --- | --- | | Meal break | Modern award / enterprise agreement | 30 minutes (unpaid) after 5 hours | | Rest break | Modern award / enterprise agreement | 10 minutes paid per 4-hour work period (varies by award) | | Daily rest between shifts | Modern award (where specified) | Commonly 10 to 12 hours; varies by industry | | Weekly rest | Roster and award provisions | 2 consecutive days off per week in many awards | Because Australia does not have a single national statutory minimum rest period written into the NES, the actual entitlements your employee holds depend on their modern award or enterprise agreement. For example: - The Clerks Private Sector Award requires a 10-minute rest break for each 4-hour work period. - The Manufacturing and Associated Industries Award specifies minimum break intervals between shifts. - Employees not covered by any award (typically those earning above the high-income threshold) rely on their employment contract for rest arrangements. Teamed's standard Australian employment contract includes rest provisions consistent with the relevant modern award for each employee's role. Where no award applies, the contract reflects reasonable industry practice. ## How does Australia annual leave work? Full-time employees get 20 days of paid annual leave per year. Annual leave in Australia is separate from public holidays. Public holidays come on top, not bundled in. The entitlement comes from section 87 of the [Fair Work Act 2009](https://www.legislation.gov.au/Details/C2009A00028). It applies to all permanent full-time and part-time employees covered by the NES. Casual employees do not accrue annual leave under the NES; they receive a casual loading instead. ### How it accrues Annual leave accrues progressively during the year based on ordinary hours worked. A full-time employee accrues it at a rate of 1.667 days per month (giving 20 days over a full year). Part-time employees accrue leave on the same basis pro-rated to their contracted hours. ### Annual leave and public holidays: not bundled This is a key structural difference from countries like the UK. In Australia, public holidays are a separate entitlement. When a public holiday falls while an employee is on annual leave, the day is not counted as annual leave. The employee gets the public holiday on top. So an employee taking three weeks off that includes a national public holiday effectively uses 20 days minus one day of annual leave for that period. ### Carry-over and leave loading Unused annual leave carries forward without a statutory cap or expiry. Some modern awards include a leave loading of 17.5% on top of the employee's ordinary pay rate when annual leave is taken. This is an additional cost to the employer if the award requires it. Not all awards include leave loading, and enterprise agreements may substitute equivalent arrangements. ### Annual leave pay-out on termination Accrued but unused annual leave must be paid out on termination at the employee's ordinary rate of pay, plus the 17.5% leave loading if it applies under the award. This is a cash cost that employers should factor into workforce planning. ## How many Australia public holidays are there? There are 8 national public holidays under the Fair Work Act. Each state and territory adds its own additional public holidays. Most employees end up with 11 or more paid public holidays per year depending on where they work. | National public holiday | Date (2026) | All states and territories | | --- | --- | --- | | New Year's Day | 1 January | Yes | | Australia Day | 26 January | Yes | | Good Friday | 3 April | Yes | | Easter Saturday | 4 April | Yes (most states) | | Easter Monday | 6 April | Yes | | Anzac Day | 25 April | Yes | | Christmas Day | 25 December | Yes | | Boxing Day | 26 December | Yes | | **National total** | | **8** | ### State and territory additions On top of the 8 national days, each state and territory adds its own holidays. Examples for 2026: - **New South Wales:** Bank Holiday (first Monday August) and Queen's Birthday (second Monday June) - **Victoria:** Melbourne Cup Day (first Tuesday November) and Queen's Birthday (second Monday June) - **Queensland:** Queen's Birthday (last Monday October) and Show Day (varies by region) - **Western Australia:** Queen's Birthday (last Monday September) and Foundation Day (first Monday June) - **South Australia:** Adelaide Cup (second Monday May) and Proclamation Day (26 December) The practical total for most employees is 11 to 13 paid public holidays per year depending on their state. All public holidays are separate from annual leave. ### Public holiday pay Employees must be paid their ordinary rate for public holidays they do not work. If an employee is required to work on a public holiday, the relevant modern award or enterprise agreement sets the applicable penalty rate. Many awards specify time-and-a-half or double time for public holiday work. This is a statutory entitlement, not a discretionary benefit. ## Parental leave in Australia Australia's Paid Parental Leave scheme is government-funded at the national minimum wage for up to 26 weeks. From 1 July 2026, the full 26 weeks pool is shareable between both parents, with 20 days reserved for each parent on a use-it-or-lose-it basis. Australia's parental leave system has two distinct parts: the government-funded Paid Parental Leave (PPL) scheme administered through Services Australia, and a separate unpaid parental leave entitlement under the NES. ### Government-funded Paid Parental Leave from 1 July 2026 From 1 July 2026, the [Paid Parental Leave Act 2010](https://www.servicesaustralia.gov.au/parental-leave-pay) provides up to 26 weeks of government-funded PPL at the national minimum wage rate. Key features: - The full 26 weeks pool is shareable between both parents. Either parent can take any portion of it. - 20 days (4 weeks) are reserved for each parent on a use-it-or-lose-it basis. If one parent does not take their reserved days, those days are lost, not transferred. - PPL is paid at the national minimum wage rate. Employers do not top up the government payment unless they choose to do so as an employment benefit. - PPL can be taken in multiple blocks, not necessarily as a single continuous period. - Both parents must meet the work test: at least 10 of the 13 months before the birth or adoption must include some qualifying employment. ### Unpaid parental leave under the NES Separately from the PPL scheme, employees with at least 12 months of continuous service are entitled to up to 52 weeks of unpaid parental leave under the NES, with the option to request a further 52 weeks. This entitlement exists independently of whether the employee qualifies for government PPL. The NES unpaid leave right means a parent can take 12 months off work with job protection even if the government-funded PPL payments have ended earlier. ### What employers typically provide above the minimum Many large Australian employers enhance parental leave pay above the government minimum. A common package in professional services and technology companies offers 12 to 16 weeks of employer-paid leave at full salary for primary carers, followed by the government-funded PPL period. Secondary carer leave of 2 to 4 weeks at full pay is also common. These are contractual benefits, not legal requirements. ## Sick and personal leave in Australia Employees get 10 days of paid personal and carer's leave per year. Sick leave is paid at the employee's ordinary rate of pay. There is no government sick pay scheme and no waiting days. The entitlement comes from section 96 of the [Fair Work Act 2009](https://www.legislation.gov.au/Details/C2009A00028). Australia calls this entitlement personal and carer's leave rather than sick leave, because it covers both personal illness and caring for an ill family member. Fair Work Ombudsman · Sick and carer's leave Full-time employees get 10 days of paid personal and carer's leave per year. Part-time employees receive a pro-rata amount. The leave is paid at the employee's ordinary rate of pay. Employees can use personal leave to care for an immediate family or household member who is ill or injured. Source: [Fair Work Ombudsman: Sick and carer's leave](https://www.fairwork.gov.au/leave/sick-and-carers-leave) ### How it works in practice - There are no waiting days. Pay starts from day one of illness. - There is no government reimbursement mechanism. Sick leave is fully an employer cost. - Unused sick leave accumulates from year to year. There is no cap on accrued unused leave, but it does not pay out on termination (unlike annual leave). - Employees can use sick leave to care for an immediate family member or household member who is ill. ### Evidence requirements Employers can ask for evidence of illness. A medical certificate or statutory declaration is the standard form of evidence. The employer must specify what evidence it needs. Without that request, the employee is not required to provide documentation spontaneously. Employees are protected from adverse action for taking genuine paid sick leave. ### Unpaid carer's leave Employees who have used all their paid personal leave can take 2 additional days of unpaid carer's leave per occasion. This is a separate NES entitlement and applies to all employees including casuals (casuals get the unpaid version only, not the 10-day paid entitlement). ## How does Teamed handle Australia employment for you? Teamed becomes your legal [employer of record](/employer-of-record) in Australia for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Annual leave accrual, public holiday tracking across all eight states and territories, and the parental leave pay flow all run on **one platform**. **Real HR and legal experts** manage your Australian working-time obligations. That means the modern-award identification for each employee's role, the leave-loading calculation, the state-by-state public holiday calendar, and every parental leave notification and government PPL claim. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice. EOR payroll, contractor onboarding, and entity setup all live on **one platform**. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month your Australia hire is ready to **graduate** to your own entity. EOR works well **until it isn't** the right structure for your headcount. Key sources: [Fair Work Ombudsman: Annual leave](https://www.fairwork.gov.au/leave/annual-leave), [Fair Work Ombudsman: Sick and carer's leave](https://www.fairwork.gov.au/leave/sick-and-carers-leave), and [Services Australia: Parental Leave Pay](https://www.servicesaustralia.gov.au/parental-leave-pay). 1. Identify the modern award Each Australian employee sits under a specific modern award. Teamed identifies the right award at onboarding to set leave loading, overtime rates, and break entitlements correctly from day one. 2. Set up annual leave accrual Annual leave accrues progressively at a rate tied to ordinary hours worked. Teamed tracks accrual automatically and flags leave-loading obligations when an employee takes annual leave. 3. Map state public holidays Each state and territory has its own additional public holidays on top of the national set. Teamed maintains a state-by-state calendar and applies the right days for each employee's location. 4. Process parental leave pay claims From July 2026 the government-funded parental leave pool is 26 weeks, shareable between parents. Teamed handles the Services Australia PPL claim process and coordinates employer-side notification. 5. Manage personal leave accumulation Paid personal and carer's leave accumulates year on year without a cap. Teamed tracks the balance, handles evidence requirements, and ensures the leave does not pay out incorrectly on termination. ## Frequently asked questions How many hours can an Australian employee work per week? The maximum ordinary hours under the Fair Work Act are 38 hours per week. Employers can request reasonable additional hours above that. There is no opt-out agreement that removes the cap. Employees can refuse additional hours that are genuinely unreasonable without facing any penalty. How much annual leave do Australian employees get? Full-time employees are entitled to 20 days of paid annual leave per year under the National Employment Standards. Annual leave is separate from public holidays, which are on top. Unused leave carries forward without a statutory expiry date. On termination, all accrued unused annual leave must be paid out. How many public holidays are there in Australia? There are 8 national public holidays under the Fair Work Act. Each state and territory adds its own additional public holidays on top. In practice, most employees receive 11 to 13 paid public holidays per year depending on their state. Public holidays do not count against annual leave. How does sick leave work in Australia? Employees get 10 days of paid personal and carer's leave per year. There are no waiting days. Pay is at the ordinary rate from day one of illness. Sick leave is an employer cost; there is no government reimbursement scheme. Unused sick leave accumulates from year to year but does not pay out on termination. What parental leave pay is available in Australia from July 2026? From 1 July 2026, the government-funded Paid Parental Leave scheme provides up to 26 weeks of payments at the national minimum wage rate. The full pool is shareable between both parents. Twenty days are reserved per parent on a use-it-or-lose-it basis. Separately, employees with 12 months of service are entitled to up to 52 weeks of unpaid parental leave under the NES, with job protection throughout. Teamed Legal Operations The leave-loading catch surprises US and UK clients almost every time. They see the 20 days of annual leave and assume that is the only cost. Then they discover the 17.5% loading on top of base pay when the employee actually takes it. We walk every new client through the modern-award stack at onboarding so there are no invoice surprises in the first leave cycle. A note from Tom Price-Daniel Australia's 20 days of annual leave sit on top of public holidays, not inside them. That is a structural difference from the UK model. Brief it into your contracts before your first hire. From 1 July 2026, the government-funded parental leave pool reaches 26 weeks, shareable between both parents. Tom Price-Daniel · Co-founder, Teamed ## Related Australia guides - Hiring in Australia, overviewparent - [Australia hiring guide](/country-hiring-guides/australia/hiring-guide)sibling - [Australia termination and severance](/country-hiring-guides/australia/termination-and-severance)sibling - [Australia tax and payroll](/country-hiring-guides/australia/tax-and-payroll)sibling - [Employer of Record overview](/employer-of-record)core - [Run the employer-cost numbers](https://www.teamed.global/tools/employer-cost)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Fair Work Ombudsman at fairwork.gov.au and the relevant state or territory authorities, or speak to a qualified professional, before relying on any specific framework.