Personal Leave vs Annual Leave in Australia : What Employees Need to Know

Many Australian employees get confused when deciding which leave to use. Should I use personal leave or annual leave for this time off? The difference comes down to why you need the time away. Personal leave covers illness, injury, and caring responsibilities. Annual leave is for planned time off and holidays.

You will learn how to choose the right leave and understand what your employer can request. Choosing the correct leave matters for both your rights and your workplace obligations.

Unsure which leave applies to your situation?
If illness or stress is affecting your ability to work, an Australian-registered GP can assess your situation and advise whether a medical certificate is appropriate.

What is the difference between personal leave and annual leave?

Here are the key differences:

• Personal leave is for illness, injury, or caring responsibilities. It includes sick leave and carer’s leave.
• Annual leave is for planned time off, holidays, and rest breaks when you are otherwise fit for work.
• Personal leave usually requires you to notify your employer as soon as possible. Evidence may be required if your employer asks for it.
• Annual leave is typically requested in advance. Your employer can approve or refuse based on reasonable business needs.
• Casual workers generally do not get paid personal leave or paid annual leave under the National Employment Standards (NES).
• Your award or enterprise agreement may include additional rules or entitlements.

What is personal leave in Australia?

Personal leave is the term used under the Fair Work Act for paid sick leave and carer’s leave. Full-time and part-time employees accrue this leave. Casual employees generally do not receive paid personal leave under NES.

You can use personal leave when:

• You are sick or injured and unable to work
• You need to care for an immediate family member or household member who is sick or injured
• You face an emergency involving a family or household member

Your employer can ask for evidence that would satisfy a reasonable person. Common examples include a medical certificate from a GP or a statutory declaration. You do not always need evidence, but you must provide it if your employer requests it within a reasonable timeframe.

Need evidence for personal leave?
If you are unwell and cannot attend work, a GP consultation can help determine whether a medical certificate is suitable.

Also Read : https://telehealthdr.com.au/personal-leave-vs-sick-leave-in-australia/

What is annual leave in Australia?

Annual leave is paid time off for rest and recreation. It is a workplace entitlement under NES. Full-time employees accrue four weeks of paid annual leave per year. Part-time employees accrue leave based on their ordinary hours of work.

Common uses for annual leave include:

• Holidays and travel
• Family time and special events
• Rest and recovery when you are fit for work
• Planned personal activities

Some shiftworkers may accrue additional annual leave depending on their award or agreement.

Here is a simple comparison to help clarify the difference:

Personal leave vs annual leave: side-by-side comparison

Aspect	Personal Leave	Annual Leave
Purpose	Illness, injury, or caring for a family/household member	Planned time off, holidays, rest
Notice	As soon as possible (often same day)	Requested in advance
Evidence	May be required if the employer asks	Usually not required
Accrual	Accrues progressively; unused leave carries over	Accrues progressively; unused leave carries over
Payout on termination	Usually not paid out	Paid out on termination

Your award or enterprise agreement may include different rules. Check with your employer or the Fair Work Ombudsman if you are unsure.

If you are unsure which leave fits your situation, start with the reason for the time off: health-related or planned time away.

When should you use personal leave instead of annual leave?

Use personal leave when health or caring responsibilities prevent you from working. This leave exists to support employees during genuine illness or when caring for others.

Typical situations where personal leave applies:

• Flu, gastro, migraine, or injury that makes you unfit for work
• Mental health concerns where you are not able to perform your duties
• Caring for a sick child, partner, or household member
• Medical appointments that cannot be scheduled outside work hours (check your workplace policy)

If you are unwell due to stress, anxiety, or other mental health concerns, personal leave may apply. You do not need to disclose your diagnosis, only that you are unfit for work.

Also Read : How Does sick Leave Work in Australia

When should you use annual leave instead of personal leave?

Use annual leave when you want planned time off, and you are otherwise fit for work. This leave is for rest, recreation, and personal activities.

Situations where annual leave applies:

• Planned holidays and travel
• Family events like weddings or celebrations
• Rest breaks when you are not sick or injured
• Personal time off for hobbies or activities

Annual leave is usually agreed with your employer ahead of time. Your employer can consider business needs when approving leave requests.

Can your employer ask for a medical certificate for personal leave?

Yes. Your employer can request evidence for personal leave. The evidence must be reasonable. A medical certificate or statutory declaration is the most common form of proof.

Fair Work does not set a minimum number of days before evidence can be requested. Your employer can ask for a certificate even for one day of personal leave, as long as the request is reasonable.

Practical tips:

• Tell your employer you need personal leave as soon as possible
• Ask what type of evidence they accept
• Provide evidence within a reasonable timeframe
• Keep medical details private; evidence should confirm you were unfit for work, not include unnecessary personal information.

If your employer has asked for proof, a GP can assess your condition and provide appropriate documentation where clinically justified.

Can you take annual leave when you are sick?

If you get sick during planned annual leave, you can convert some of that leave to personal leave. Workplace policies and awards differ, so check your specific situation.

What to do:

• Notify your employer as soon as you become unwell
• Ask whether you can convert annual leave to personal leave
• Provide evidence if your employer requests it

Some workplaces allow this. Others may not. Check with your HR department or review your enterprise agreement.

Casual employees: do they get personal leave or annual leave?

Casual employees generally do not accrue paid personal leave or paid annual leave under NES. They may have access to unpaid leave options depending on their award, contract, or workplace arrangement.

What casuals can do:

• Ask your employer about unpaid time off
• Check your award or employment contract for specific entitlements
• Discuss rostering changes if you need time away

Some casual employees may be eligible for unpaid carer’s leave or compassionate leave under certain conditions. Check Fair Work guidance or speak with your employer.

Common mistakes employees make with leave

Employees often make these errors:

• Using annual leave for illness because it seems easier, or they want to save personal leave
• Not notifying their employer early enough when taking personal leave
• Assuming a medical certificate is always required (it is only needed when requested)
• Confusing personal leave and annual leave balances on their payslip
• Waiting too long to organise evidence after their employer asks for it

Understanding the difference between leave types helps you use your entitlements correctly and avoid workplace issues.

What to say to your employer

Personal leave message:
“I am unwell today and unable to work. I will be taking personal leave. I will update you on my return to work.”

Annual leave request:
“I would like to request annual leave from [date] to [date]. Please let me know if this works with the team’s schedule.”

Evidence follow-up:
“You asked for evidence for my recent personal leave. I have attached a medical certificate from my GP.”

Keep messages brief, polite, and professional.

FAQ’s:

What is personal leave in Australia?

Personal leave is paid time off for illness, injury, or caring for an immediate family or household member. It is an entitlement under the National Employment Standards.

What is annual leave in Australia?

Annual leave is paid time off for rest, holidays, and recreation. Full-time employees accrue four weeks per year under NES.

Do casual employees get annual leave?

Casual employees generally do not accrue paid annual leave under NES. They may have access to unpaid leave depending on their award or contract.

Can my employer refuse annual leave?

Your employer can refuse annual leave on reasonable grounds, such as business needs or operational requirements. Requests should be discussed and agreed upon in advance.

Can my employer ask for a medical certificate for one day?

Yes. Your employer can request evidence for any period of personal leave, as long as the request is reasonable.

Does personal leave roll over from year to year?

Yes. Unused personal leave usually carries over to the following year. It accrues progressively based on your ordinary hours of work.

Do I get paid out for unused annual leave when I leave my job?

Yes. In most cases, unused annual leave is paid out when your employment ends. Personal leave is generally not paid out.

Summary and next steps

Here is what you need to remember:

• Personal leave is for illness, injury, and caring responsibilities
• Annual leave is for planned time away and holidays
• Employers may ask for evidence when you take personal leave
• Annual leave usually needs approval and planning
• Casual employees have different entitlements under the NES
• When in doubt, check Fair Work guidance and your workplace policy

If you are unwell and need clear guidance for time off work, an Australian-registered GP can assess your situation and advise on next steps, including a medical certificate when clinically appropriate.