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Leave & Entitlements (NES-Aligned)

What is a Unpaid time off?

Updated 27 Jan 2026 5 min read

Unpaid time off (also called unpaid leave or leave without pay) is time away from work where the employee doesn't receive their regular wages. Some unpaid leave is protected by law (such as parental leave), while other unpaid leave requires employer agreement. It's often used when paid leave is exhausted or unavailable.

Understanding unpaid time off

Unpaid time off allows employees to take leave without receiving their regular pay. In Australia, some unpaid leave is legally protected under the National Employment Standards, while other unpaid leave requires mutual agreement between employer and employee.

Protected unpaid leave

  • Parental leave (12 months)
  • Carer's leave (2 days/occasion)
  • Compassionate (casuals)
  • Community service leave

Discretionary unpaid leave

  • Extended travel
  • Study or training
  • Personal matters
  • Career breaks

Protected unpaid leave under NES

Several types of unpaid leave are legally protected:

NES unpaid leave entitlements

Parental: 12 months (can request 12 more)
Carer's: 2 days when paid leave exhausted
Compassionate: 2 days for casual employees
Community: Jury duty, emergencies

Requesting unpaid leave

  • Written request: Put your request in writing with dates and reasons
  • Advance notice: Give as much notice as possible
  • Business impact: Consider timing and coverage needs
  • Negotiation: Be open to alternative arrangements

Using paid leave first

Employers may require employees to use accrued annual leave or personal leave before approving unpaid leave. Check your employment contract or enterprise agreement for specific requirements.

Impact on entitlements

What may be affected

  • Annual leave accrual pauses
  • Personal leave accrual pauses
  • Long service leave may be affected
  • Superannuation not paid

What continues

  • Employment relationship maintained
  • Right to return to role
  • Continuous service (usually)
  • Unfair dismissal protections

Common unpaid leave mistakes

Refusing protected unpaid leave

Employers cannot refuse NES-protected unpaid leave such as parental leave or carer's leave when employees meet eligibility requirements.

Not documenting agreements

Always put unpaid leave agreements in writing, including dates, duration, and any conditions. This protects both parties.

Breaking continuous service

Extended unauthorised absence can break continuous service and affect entitlements. Always get proper approval before taking unpaid time off.

Key takeaways

Unpaid time off serves as an important safety net when paid leave isn't available or sufficient. Understanding which unpaid leave is legally protected helps both employers and employees navigate leave requests appropriately.

RosterElf's leave management helps you track all leave types - paid and unpaid - ensuring accurate records and seamless roster adjustments.

Frequently asked questions

RosterElf Team

Written by

RosterElf Team

The RosterElf team comprises workforce management specialists with deep expertise in Australian employment law, rostering best practices, and payroll compliance. Our team works directly with businesses across hospitality, healthcare, retail, and service industries to develop practical solutions for common workforce challenges.

General information only – not legal advice

This glossary article about unpaid time off provides general information about Australian employment law and workplace practices. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

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