Comprehensive management of employee leave entitlements under the Modern Award and National Employment Standards. We ensure accurate leave tracking, proper accrual, correct payment on termination, and compliance with leave laws.
The Challenge
You track leave informally, so there's no clear record of what's been taken
Employee and employer have different ideas about how much leave is owed
You don't track long service leave, creating uncertainty about liability
You terminate someone without calculating leave owing, creating disputes and potential underpayment
You don't understand your Modern Award's leave provisions, so you're not providing all required leave
What's Included
Analysis of the Modern Award to identify all applicable leave entitlements (annual, sick, LSL, special leave).
Policy for how leave accrues and is tracked (e.g., annual leave accrues 1 week per quarter; sick leave banks 10 days annually).
Simple spreadsheet or system to track leave taken, accrued, and remaining for each employee.
Review of existing leave balances (especially for existing employees) to confirm what's owed to date.
Clear process for calculating and paying all leave owing on termination (accrued annual leave, accrued sick leave, long service leave if applicable).
Annual or periodic statements provided to employees confirming their leave balances and usage.
Why It Matters
Leave entitlements are a key employment obligation. Employees are entitled to annual leave (at least 4 weeks), sick leave (at least 10 days), long service leave (if they've completed 10 years), and any other leave specified in the Modern Award (parental leave, compassionate leave, etc.). If you don't track leave properly, you risk underpaying on termination, creating disputes with employees about leave balances, or breaching Fair Work obligations. Many small businesses track leave informally, leading to confusion about balances. Some employees leave without proper leave payout because the balance was never calculated. Proper leave management protects both the business (by having documented entitlements and balances) and employees (who know what they're entitled to and are paid correctly).
Accurate tracking of all leave entitlements (annual, sick, LSL, etc.)
Proper accrual calculation and leave balance management
Correct leave payment on termination (no underpayment)
Compliance with Fair Work Act leave provisions
Clear, documented leave management process
Reduced disputes about leave balances and entitlements
The Process
Employee leave entitlements under Modern Award identified (annual leave, sick leave, long service leave, any special leave)
Leave accrual policy established (e.g., annual leave accrual per week/fortnight, sick leave policy)
Leave tracking system set up (spreadsheet, payroll software integration, or system)
Leave balances reconciled (especially for existing employees—what's owed to date)
Ongoing tracking of leave taken, accrued, and used
Leave balances reviewed regularly (at least annually) and communicated to employees
Leave paid correctly on termination (accrued annual leave, LSL, accrued sick leave if required by Award)
Best For
Growing businesses needing to formalise leave tracking
Businesses with inconsistent leave management across staff
Owners wanting to manage leave liability and termination pay correctly
Businesses wanting to reduce disputes about leave balances
Complementary Services
Review of employee classifications against the relevant Modern Award requirements. We ensure you're applying the Award correctly, employees are paid at the right classification level, and you're not exposed to back pay claims.
Regular, ongoing audits of payroll, employment records, and Award compliance. We monitor for payment errors, classification issues, leave underpayment, and other compliance gaps, catching problems early.
Guidance and support for fair, legally compliant terminations. Whether terminating for performance, misconduct, or redundancy, we ensure the process is fair, properly documented, and defensible under the Fair Work Act.
FAQ
National standard is 4 weeks annually. Some Modern Awards specify 4 weeks plus additional loading or different arrangements. Check your specific Award. Annual leave must be provided, and the employee has a right to take it.
Yes. Accrued, unused annual leave must be paid out on termination. It's a guaranteed entitlement. If you haven't tracked leave, you must estimate what's owed.
Generally, 13 weeks for 10 years of service (some industries different). It accrues over time. Some Awards allow pro-rata LSL on termination; others don't. Check your Award. You must plan for LSL liability.
Not really. You can't refuse indefinitely. The Fair Work Act gives employees a right to take leave. You can try to defer it to a more convenient time, but within reason, leave should be taken.
The National Standard is 10 days paid sick leave per year. Most Modern Awards adopt this or similar. Sick leave is a paid entitlement. You might ask for a doctor's certificate for longer absences, but you must pay it.
Can't find the answer you're looking for? Get in touch
We can help you implement leave entitlement management and start seeing results. Book a consultation to discuss your specific needs and explore how this service can transform your business.