What is the Fair Work Act 2009?
The Fair Work Act 2009 (Cth) is the federal law that governs employment conditions for most Australian workers. It commenced on 1 July 2009 and is administered by two bodies: the Fair Work Commission (the national workplace relations tribunal) and the Fair Work Ombudsman (the enforcement and advisory body).
The leave entitlements that matter most to employees sit in Part 2-2 of the Act, which establishes the National Employment Standards (NES). The NES is the federal floor: no award, enterprise agreement, or employment contract can offer less. They can always offer more.
The Act covers most private-sector employees and federal public servants in Australia. The main exception is Western Australian state government employees, who fall under separate state legislation.
Annual leave (s.87)
Section 87 of the Fair Work Act 2009 entitles all full-time and part-time employees to 4 weeks of paid annual leave per year, based on their ordinary hours of work. Casual employees do not accrue annual leave.
Annual leave accumulates from the first day of employment, including during a probation period. Unused leave rolls over from year to year and does not expire. Leave accumulates while an employee is on paid leave, community service leave, or long service leave. It does not accumulate during unpaid leave periods.
Eligible shiftworkers are entitled to 5 weeks of annual leave per year if their award or enterprise agreement includes shiftwork provisions and defines them as an employee who receives the additional week under the NES.
Fair Work Act 2009 (Cth) ss.86-87. Also see: Fair Work Ombudsman, Annual leave (updated March 2026).
Jane works part-time at 20 hours per week. Over a year she accumulates 80 hours of annual leave (4 weeks at her ordinary hours). If she takes 2 weeks off she uses 40 hours and carries the remaining 40 into the next year.
Run the annual leave calculator to see hours accrued and dollar value at your rate.
Personal and carer's leave (s.96)
Section 96 of the Fair Work Act 2009 entitles full-time employees to 10 days of paid personal/carer's leave per year. Part-time employees receive a pro-rata amount based on their ordinary hours. Casual employees do not accrue paid personal leave.
This combined entitlement covers two situations: when you are ill or injured yourself (personal leave), and when you need to care for an immediate family or household member who is sick, injured, or facing an unexpected emergency (carer's leave). Unused leave carries over year to year but, unlike annual leave, is not paid out on termination.
Under s.107, an employer can require reasonable evidence for any absence, such as a medical certificate or statutory declaration. There is no minimum number of days before evidence can be requested.
Notice of termination (s.117)
Section 117 sets the minimum notice an employer must give when ending employment. The amount scales with length of continuous service:
| Continuous service | Minimum notice |
|---|---|
| 1 year or less | 1 week |
| More than 1 year, up to 3 years | 2 weeks |
| More than 3 years, up to 5 years | 3 weeks |
| More than 5 years | 4 weeks |
Employees over 45 who have completed at least 2 years of continuous service receive an additional 1 week. Employers can pay in lieu of notice rather than requiring the employee to work the notice period.
Redundancy pay (ss.119-121)
When an employer no longer needs a job done by anyone, the affected employee is entitled to redundancy pay if they have at least 1 year of continuous service and the employer has 15 or more employees. Small businesses (fewer than 15 employees) are exempt from the NES redundancy obligation.
The NES redundancy scale, sourced directly from the Fair Work Ombudsman:
| Continuous service | Redundancy pay |
|---|---|
| At least 1 year, less than 2 years | 4 weeks |
| At least 2 years, less than 3 years | 6 weeks |
| At least 3 years, less than 4 years | 7 weeks |
| At least 4 years, less than 5 years | 8 weeks |
| At least 5 years, less than 6 years | 10 weeks |
| At least 6 years, less than 7 years | 11 weeks |
| At least 7 years, less than 8 years | 13 weeks |
| At least 8 years, less than 9 years | 14 weeks |
| At least 9 years, less than 10 years | 16 weeks |
| 10 years or more | 12 weeks |
Note the reduction at 10 years: long service leave entitlements are expected to supplement redundancy at that tenure. Redundancy pay is calculated at the employee's base pay rate and does not include bonuses, loadings, or overtime. Any accrued annual leave and long service leave must also be paid out as part of the final pay.
Fair Work Ombudsman, Redundancy pay (updated March 2026). Legislative reference: Fair Work Act 2009 (Cth) ss.16, 22, 117, 119-121, 141.
Melissa has worked full-time at a large restaurant for 3 years. Her role is made redundant. Under ss.119-121 she is entitled to 7 weeks redundancy pay, plus 3 weeks notice under s.117, plus any accrued annual leave paid out at her base rate.
Use the redundancy calculator to see your entitlement based on years of service.
How awards and enterprise agreements interact with the Act
The NES is the legislated floor. Modern awards are industry or occupation-based instruments made by the Fair Work Commission that sit on top of the NES and can add entitlements such as leave loading, higher pay rates, or shift worker leave. Enterprise agreements are negotiated between an employer and their employees and must pass the “better off overall test” (BOOT) to be approved by the Fair Work Commission.
If your award or contract offers more than the NES, you get the better deal. If it tries to offer less, the NES wins and that part of the contract is invalid.
Employees covered by no award and no enterprise agreement (called “award-free”) still receive all NES entitlements as their minimum.
Key takeaways
- The Fair Work Act 2009 sets the federal minimum leave entitlements for most Australian employees. No contract can take those minimums away.
- Annual leave is 4 weeks per year (s.87) and accrues from day one, including during probation. Shiftworkers may get 5 weeks.
- Personal and carer's leave is 10 days per year (s.96). Unused leave carries over but is not paid out when employment ends.
- Notice (s.117) and redundancy (ss.119-121) scale with length of service. Small businesses are exempt from redundancy obligations.
- Accrued annual leave is always paid out on termination, regardless of the reason employment ends.
Author & reviewer
Sarah has spent over a decade advising Australian SMBs on Fair Work, NES compliance, and payroll. Based in Sydney, she has worked across hospitality, retail and professional services.