When an employee experiences the serious illness, injury, or death of someone close to them, compassionate leave provides time to grieve and manage personal responsibilities. For employers, understanding how this entitlement applies – particularly when the affected person isn’t an immediate family or household member – is essential for balancing legal compliance, fair treatment, and empathy.

Paid compassionate leave (sometimes called bereavement leave) is governed by the Fair Work Act 2009 (Cth), which is an entitlement for all permanent employees. Under the National Employment Standards, all permanent employees are entitled to up to two days of paid compassionate leave per occasion. Casual employees are entitled to two days of unpaid compassionate leave per occasion.

This leave can be taken when an employee’s immediate family or household member:

• Dies; or
• Contracts or develops a life-threatening illness or injury.

Employees can take the leave as a continuous two-day period, two separate days, or any arrangement agreed upon with the employer (for example, half days).

Who is considered immediate family?

The Fair Work Act defines immediate family as:

• A spouse, de facto partner, child, parent, grandparent, grandchild, or sibling of the employee; or
• The same relatives of the employee’s spouse or de facto partner.

It also includes adopted, step, and adoptive relationships.

As above, leave can also be taken for a member of the household even if they are not an immediate family member.

Leave for someone other than immediate family member or household member

If the person who has died or is seriously ill doesn’t fall within these definitions, the employee technically isn’t entitled to compassionate leave under the National Employment Standards. However, this doesn’t mean employers are powerless to act compassionately. Employers may consider:

• Granting annual leave or unpaid leave for the employee to attend a funeral, support friends, or manage personal responsibilities.
• Allowing flexible work arrangements, such as working from home or adjusting hours temporarily.
• Offering discretionary paid leave under an internal policy or enterprise agreement.

Some employers choose to create a broader “special leave” policy that allows managers to approve short periods of leave for compassionate reasons beyond the National Employment Standards. This helps ensure consistent, fair decisions and supports employee wellbeing.

Example scenario

Tina, an employee of XYZ, is very close to her neighbour Donny. Since Tina’s father passed away, Donny has been like a substitute father to her. Unfortunately, Donny passes away and Tina is devastated. XYZ has been aware of Tina’s relationship with Donny for some time. As Donny is not an immediate family member, Tina is not entitled to paid compassionate leave. However, as the company knows how distressed Tina is, at their discretion, they have allowed her to access special paid leave so she can grieve. 

Taking compassionate leave and payment

Compassionate leave is provided for employees to spend time with an immediate family or household member who has contracted or developed a personal illness or sustained a personal injury, or after the death of a member of an employee’s immediate family or household. Leave can be taken at once or broken into two single days. If the person is initially ill and then passes a day or so later, this is a single occasion, and the employee is only entitled to two days total (not two occasions of two days). If the person is seriously ill, recovers and then falls seriously ill again at a later time, the employee would receive two days for each occasion (4 days total). Employers are recommended to apply their greater discretion if there is any question whether the person is entitled to more than 2 days due to there being separate ‘occasions’ linked to the person’s illness or death.

Payments are determined by the employee’s base rate of pay for the ordinary hours of work in the period. For example, a part-time employee who would have worked 6 hours per day as a night shift on the two days they took compassionate leave would receive a total of 12 hours of pay at their base rate of pay, not inclusive of any shift loading.

Evidence requirements when taking compassionate leave

Employers can request evidence – such as a funeral notice, death certificate, or medical certificate – that reasonably supports the need for leave. Importantly, employers should apply this requirement with sensitivity and avoid rigid demands during emotionally charged times.

Compassion beyond compliance

While the law sets the minimum standard, compassionate leave often touches on the culture of a workplace more than its compliance manual. Allowing space for grief and emotional recovery fosters trust, loyalty, and productivity in the long run.

Even when an employee isn’t legally entitled to compassionate leave, small gestures – flexibility, understanding, and discretion – can make an enormous difference. It is often better to ask what an employee needs, rather than to tell them what they can have.

How can Business Chamber Queensland help?

For tailored advice on managing compassionate leave entitlements or developing workplace policies that balance compliance with employee wellbeing, contact our Workplace Services Advisory Team. Our team can assist with interpreting legislative requirements, reviewing existing leave frameworks, and implementing practical strategies to ensure your organisation meets its obligations while supporting staff during difficult circumstances.