Paid Time Off (PTO) refers to any time during which an employee is paid their normal wage or salary while not actively working. In Australian workplaces, PTO typically encompasses annual leave, sick leave, public holidays, compassionate leave, and other entitlements outlined by the National Employment Standards (NES), modern awards, or enterprise agreements.
Although “PTO” is a term more commonly used in the United States, Australian employers and HR software platforms (like Microkeeper) often use it as a catch-all phrase to describe paid leave categories available to employees under Fair Work guidelines.
Paid time off in Australia is regulated under the NES and includes several distinct leave types:
PTO isn't just a benefit, it plays a key role in promoting:
In today’s employment landscape, offering flexible and transparent PTO policies can be a competitive advantage for attracting and retaining talent.
Paid time off accrues differently based on the type of leave:
Employers are required to:
Note: Casual employees generally do not accrue most types of paid leave, except for paid family and domestic violence leave.
It’s important to distinguish between:
Some employers offer “leave without pay” at their discretion, but it is not always an entitlement under Fair Work.
Microkeeper’s HR software makes it easy to manage Paid Time Off:
Leave accrual tracking based on hours worked and award conditions
Employee self-service for submitting and viewing leave requests
Manager approval workflows with notifications
Automatic application of public holidays and loading
Award-compliant leave calculations for payroll accuracy
Reporting and analytics to monitor leave balances, liabilities, and usage trends
Do casual employees get PTO?
Casual workers are generally not entitled to most types of paid leave, except for paid family and domestic violence leave.
Can unused annual leave be cashed out?
Yes, under certain conditions. The award or agreement must allow it, and the employee must retain a minimum balance.
Is leave loading included in PTO?
Often, yes. Many awards include annual leave loading (usually 17.5%) on top of base pay during annual leave.
Do PTO days expire?
Some leave types may have expiry periods, but annual leave typically carries over unless otherwise agreed. Employers should encourage leave-taking to reduce liability.
Employers must comply with:
Failure to manage PTO entitlements correctly can lead to underpayment claims, Fair Work audits, and penalties.
Paid Time Off is a cornerstone of employee entitlements in Australia. It supports health, motivation, and retention, while ensuring workers are treated fairly and protected under national standards.
For employers, automating leave tracking and streamlining the approval process with tools like Microkeeper ensures compliance and gives both managers and staff full visibility and confidence in how leave is managed.
Disclaimer: This content is for informational purposes only and does not constitute legal or financial advice. Please consult Fair Work or a legal professional for specific guidance.