What is leave without pay?
Leave without pay is an agreed period of unpaid time off work where you keep your job but receive no wages for the absence.
Leave without pay (LWOP), also called unpaid leave, is time off that an employer and employee agree to where the employee is not paid. It is not a guaranteed National Employment Standards entitlement (except for specific unpaid leave types like unpaid parental or carer's leave) — it usually depends on agreement between you and your employer.
During leave without pay you generally do not accrue annual leave or personal leave, because accruals are based on ordinary hours worked. The leave does not normally break your continuous service, but the unpaid period typically does not count towards the length of service used for entitlements like redundancy pay.
Key facts
- •Leave without pay is usually granted by agreement, not as an automatic right
- •Annual leave and personal leave do not accrue during most unpaid leave
- •It generally does not break continuous service under the Fair Work Act 2009
- •The unpaid period usually does not count towards length of service for redundancy or other entitlements
- •Some unpaid leave (such as unpaid parental leave) is a separate NES entitlement with its own rules
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Leave Entitlements CalculatorFrequently asked questions
Do I keep accruing leave while on leave without pay?
No. Because leave accrues on ordinary hours worked, you generally stop accruing annual leave and personal leave during a period of unpaid leave, unless your award or agreement says otherwise.
Can my employer refuse leave without pay?
Yes. Leave without pay is usually not an automatic entitlement, so an employer can decline a request unless it is a specific NES unpaid leave type or your award or agreement requires it.
FairWork Mate is an independent commercial service. We are not affiliated with, endorsed by, or associated with the Fair Work Ombudsman, the Fair Work Commission, or any Australian Government agency. Content is general information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.