Compassionate and bereavement leave¶

Compassionate leave — also called bereavement leave — is time off an employee can take when someone close to them dies or is seriously ill. It is one of the leave entitlements set by the National Employment Standards (the NES), the minimum rules that apply to most employees in Australia.

Fair Work explains that an employee can take this leave when a member of their immediate family or household dies, or has a life-threatening illness or injury.

In one line

Compassionate (bereavement) leave is 2 days each time a member of an employee's immediate family or household dies or has a life-threatening illness or injury — paid for full-time and part-time employees, unpaid for casuals.

Why this matters¶

When someone loses a family member or a close relative becomes seriously ill, they may need time away from work. Knowing this leave exists, how much there is, and whether it is paid helps you support your employee and record the pay correctly.

What you will learn¶

What compassionate (bereavement) leave is and when it can be taken
What "per occasion" means and how the 2 days can be used
Who counts as immediate family or household

Understanding the concept¶

Under the NES, an employee can take 2 days of compassionate leave each time a member of their immediate family or household dies, or contracts or develops a life-threatening illness or injury. Fair Work also allows this leave when a baby in the immediate family or household is stillborn, or when the employee or their partner has a miscarriage.

For full-time and part-time employees the 2 days are paid at their base pay rate for the ordinary hours they would have worked. For casual employees the leave is unpaid.

The 2 days are per occasion. This means the employee gets 2 days each time one of these events happens — not 2 days a year in total. If a different immediate family member becomes seriously ill later in the same year, that is a separate occasion, so a fresh 2 days applies. Fair Work explains the 2 days can be taken as one continuous 2-day period, as two separate single days, or in any other separate periods the employee and employer agree on.

Compassionate leave does not build up over time the way annual leave does. There is no running balance — the entitlement is simply available each time a qualifying event happens.

Immediate family means a spouse or former spouse, de facto partner or former de facto partner, child, parent, grandparent, grandchild or sibling. It also includes the child, parent, grandparent, grandchild or sibling of the employee's current spouse or partner. Household means a person who lives with the employee, even if they are not related.

For accountants & bookkeepers

Fair Work treats compassionate leave as separate from sick and carer's leave — it does not draw down the personal/carer's leave balance and it does not accumulate. The paid amount for full-time and part-time employees is the base pay rate for the ordinary hours the employee would otherwise have worked during the leave, which excludes overtime, penalties, allowances and loadings unless a more generous award, agreement or contract applies.

Example¶

Priya works full-time. Her grandmother passes away, so she takes 2 days of paid compassionate leave to attend the funeral and spend time with family. She is paid her normal base rate for those 2 days.

A few months later, Priya's father is admitted to hospital with a life-threatening illness. Because this is a separate occasion, Priya is entitled to another 2 days of compassionate leave. She chooses to take them as two single days a week apart, which her employer agrees to. Her earlier leave does not reduce this new entitlement.

Common mistakes¶

Thinking there are only 2 days a year — the 2 days apply per occasion, not per year.
Assuming casuals are paid for it — casual employees can take the leave, but it is unpaid.
Deducting the days from the employee's sick and carer's leave balance — compassionate leave is a separate entitlement.
Limiting it to a death only — it also covers a life-threatening illness or injury to an immediate family or household member.

How this works in myaccountant¶

In the app — you set up the leave types that apply to each employee, then record compassionate leave taken against the right leave type when you run a pay. For a full-time or part-time employee the paid leave appears on that employee's pay. For a casual, you can record the leave as unpaid so it does not add to their pay. The leave you record is shown on the payslip for the pay period.

Key points¶

Compassionate leave is also called bereavement leave.
It is 2 days each time a member of the immediate family or household dies or has a life-threatening illness or injury.
The 2 days are per occasion, not a yearly total.
It is paid for full-time and part-time employees and unpaid for casuals.
The 2 days can be taken together, as single days, or as agreed with the employer.
It does not accumulate and is separate from sick and carer's leave.

Learn next¶

General information only — not tax, super or financial advice.

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