Start with the employment relationship
The Basic Conditions of Employment Act provides a statutory foundation for leave. Before applying a rule, confirm whether the provisions cover the employee, what their normal work pattern is and whether other applicable terms affect the position.
A policy setting on its own is not a legal conclusion. Employment contracts, collective agreements and sector-specific provisions can matter. Leave above the statutory minimum can also have different agreed conditions.
Annual leave: understand the unit
The statutory starting point is at least 21 consecutive days per annual leave cycle. That is a continuous period, not automatically 21 working days. For a regular five-day week, three weeks usually corresponds to 15 working days.
By agreement, a 1-in-17 accrual method may be used. Read the annual leave guide before choosing a method for administration.
Sick leave: think in cycles
Sick leave ordinarily works over 36 months, with an entitlement equivalent to the days normally worked in six weeks. A special accrual rule applies during the first six months of employment.
Do not reset this entitlement at the start of every calendar year. Use the sick leave cycle calculator to explore a regular-pattern example.
What a useful employee record contains
- Employment start date and verified leave-cycle dates.
- Normal working days and any changes to the work pattern.
- Applicable entitlement, agreed accrual method and policy version.
- Verified opening balances, leave taken and approved future leave.
- Requests, decisions and relevant supporting records with appropriate access.
Check balances against the source record when setting up a system. A clean starting point makes later approvals easier to explain.
Keep the wider leave picture current
This introductory guide focuses on annual and sick leave. Read the detailed family responsibility leave guide and parental leave update for the separate rules and current source context. Do not infer their entitlements from annual or sick leave.