Key Takeaways
- For Australia-based employees, the National Employment Standards set the minimum rules for leave and absence, while awards and agreements may add further entitlements.
- For offshore hires, leave entitlements generally follow the employing entity and the worker's local labour laws rather than automatically following the Australian NES.
- Effective policies clearly define entitlements, the request and approval workflow, evidence expectations, handovers, and reliable record-keeping.
When Australian SMEs start building offshore teams, a clear leave and absence policy becomes one of the first HR processes that needs to mature. Businesses must balance compliance, fairness, and continuity across time zones. A well-defined policy gives employees clarity and managers confidence.
Understanding leave policy in the workplace
A leave policy is the day-to-day guide for how time off works, not just what people are entitled to. Effective absence management creates consistent processes that support compliance, workforce planning, and employee experience.
A practical policy should answer four questions:
- What applies? Define entitlements by location, country, and contract type.
- How do people request leave? State the system, notice periods, and approval steps.
- What evidence is needed? Explain when evidence may be requested and how privacy is protected.
- How does work continue? Set coverage, handover, and unplanned absence expectations.
Clear answers reduce back-and-forth, keep payroll accurate, and help managers apply rules consistently.
Start with the NES for Australia-based employees
If you employ people in Australia, your policy should reflect the National Employment Standards minimums and any relevant award or enterprise agreement.
Annual leave: Full-time employees typically receive four weeks of paid annual leave each year, with a pro-rata entitlement for part-time employees. Casual employees do not receive annual leave.
Personal or carer's leave: Full-time employees accrue 10 days of paid leave per year of service for illness, injury, mental health, or caring responsibilities. Part-time employees receive a pro-rata amount, unused balances carry over, and casuals generally do not receive paid personal leave.
Compassionate leave: Employees generally receive two days per permissible occasion involving the death or life-threatening illness or injury of an immediate family or household member.
Parental leave: Eligible employees can receive up to 12 months of unpaid leave and may request a further 12 months. Paid parental leave may also apply through policy, an award or agreement, or a government scheme.
Paid family and domestic violence leave: All employees, including casuals, receive 10 days of paid leave each year, available upfront and reset annually.
Community service leave: This applies to eligible activities such as jury duty, subject to notice and evidence requirements.
Public holidays: Although not technically leave, policies should explain rostering, reasonable requests to work, substitute days, and pay treatment under any applicable award or agreement.
Add country schedules for offshore teams
Do not copy and paste a home-country policy across every location. Details such as accruals, evidence, and public holiday treatment affect payroll and employee trust.
For offshore hiring, first establish who the legal employer is and which country's employment laws apply. In many arrangements, local labour laws determine leave entitlements even when company headquarters are in Australia.
A strong approach uses one consistent workflow for requesting and approving leave, supported by brief country schedules covering entitlements and local holidays. This avoids accidentally offering the wrong entitlement or applying rules inconsistently while preserving a common employee experience.
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What to include in your leave policy
- Request and approval process: Where requests are submitted, who approves them, and expected notice periods.
- Evidence for sick leave: When medical certificates or statutory declarations may be requested and how privacy is protected.
- Coverage and handover: How work is transferred, especially for remote employees supporting Australian hours from other time zones.
- Record-keeping: How accruals, leave taken, and remaining balances are tracked in line with Fair Work expectations.
- Edge cases: What happens when someone becomes sick during annual leave, takes extended absence, or needs return-to-work support.
Common pitfalls for first-time offshore hires
Mixing jurisdictions: Applying Australian NES entitlements to offshore contracts, or offshore rules to Australian employees, without checking the legal employer and local requirements.
Manager-by-manager decisions: Inconsistent approval practices create operational, compliance, and cultural risks.
Ignoring local holidays: Country calendars should be built into workforce planning so coverage does not fail unexpectedly.
Why growing teams need better workforce systems
Leave management becomes more complex as a business hires across locations, employment types, and time zones. The challenge is not only compliance; it is building systems that keep the team aligned, productive, and supported while scaling.
Teamified helps Australian businesses simplify global hiring and workforce management through compliant hiring structures, streamlined HR processes, and operational support.
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About the Author
Danielle Furini
Chief Operating Officer, Teamified
Danielle Furini is the Chief Operating Officer at Teamified, bringing over 15 years of expertise across technology, operations and global team management.
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