Does Personal Leave Roll Over Each Year?

Yes. Unused paid personal/carer's leave rolls over from one year to the next during continuing employment in Australia. The balance does not ordinarily reset at the end of the calendar year or the employee's work anniversary.

Full-time and part-time employees continue to accrue paid personal/carer's leave progressively based on ordinary hours. Carried-over hours are added to later accrual and can be used for the employee's illness or injury, or a qualifying carer's leave reason.

Rollover does not mean the balance is paid as cash. Sick and carer's leave is generally not paid out when employment ends and does not automatically transfer to a new employer. Limited cashing-out arrangements during employment are separate and apply only under specified industrial terms and strict conditions.

This page focuses on carryover. For the underlying calculation, read How Does Personal Leave Accrue?. For permitted uses, see Difference Between Sick Leave and Personal Leave.

This is general workplace information, not individual payroll or legal advice. Awards, enterprise agreements and contracts may provide more generous terms. Employees should check their actual balance and applicable industrial instrument.

Key Points

• Unused paid personal/carer's leave carries over into the next year.
• It does not ordinarily reset on 1 January or the employment anniversary.
• New leave continues accruing progressively and is added to the carried balance.
• Sick leave and carer's leave use the same carried-over balance.
• The National Employment Standards do not set an ordinary annual use-it-or-lose-it rule.
• Carryover generally depends on continuous employment with the same employer.
• The balance usually does not transfer to a new employer.
• Unused sick and carer's leave is not normally paid out when employment ends.
• A large balance can still only be used for genuine qualifying reasons with required notice and evidence.

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What Fair Work Says About Carryover

The Fair Work Ombudsman's paid sick and carer's leave guidance says the balance at the end of each year carries over to the next year. Full-time and part-time employees continue accumulating leave during employment.

The entitlement is expressed in ordinary hours. A full-time employee working 38 ordinary hours each week generally accrues 76 hours over a year, while part-time employees accrue a pro-rata amount.

If none is used, a full-time employee in the standard example could have about 152 hours after two complete years, subject to exact hours, any leave taken and the relevant workplace terms.

Calendar Year vs Employment Anniversary

Personal leave accrues progressively from the first day of employment, so it does not depend on a universal calendar-year grant. Payroll systems may group reports by financial year, calendar year or anniversary, but the underlying hours should continue.

An employee who starts in September begins accruing then. Their balance should not disappear in January. Likewise, reaching the September anniversary does not replace the old balance with a new 10-day amount.

If a payroll dashboard shows “current year entitlement” separately from “carried balance”, add the categories before deciding hours have been lost.

Why Personal Leave Accumulates

The rollover provides protection when a later illness, injury, surgery recovery or caring responsibility lasts longer than a newly accrued yearly amount. Employees who rarely need short absences can build a buffer for a serious future event.

The balance is not a reward for attendance and should not be used for non-qualifying purposes simply because it has grown. An employee must still be unfit for work or have a permissible caring reason.

For surgery and recovery examples, see Does Surgery Count as Sick Leave?.

A Three-Year Rollover Example

Assume a full-time employee accrues 76 hours each complete year and starts with no balance. In year one they use 16 hours, leaving 60. In year two they accrue another 76 and use 20, leaving 116. In year three another 76 is progressively added, giving 192 hours before any further leave is taken.

This is an illustration, not a universal payroll result. A mid-year start, ordinary-hours change, unpaid leave, more generous agreement or different amounts used will change the balance. The important point is that each year's unused hours remain and later accrual is added.

Employees should calculate in hours, not assume “days” are identical. A compressed-workweek employee may use more hours for one rostered day than someone working five equal days.

Is There a Cap on Rollover?

The National Employment Standards do not impose a general cap that erases paid personal/carer's leave once the balance reaches a set number of hours. A qualifying balance continues carrying over during employment.

An award or enterprise agreement may describe a more generous entitlement or how a payroll system records it, but cannot provide less than the National Employment Standards minimum. Older workplace documents sometimes use “days” or credit systems that require careful conversion.

If an employer claims a cap applies, ask for the award, agreement or legal basis in writing and obtain workplace advice if the explanation appears inconsistent with minimum standards.

Sick Leave and Carer's Leave Share the Rollover

There is one paid personal/carer's leave balance. Hours carried over from sick leave accrual can later be used for qualifying carer's leave, and hours used for caring reduce what remains for personal illness.

An employer's payroll may use different absence codes for reporting, but the statutory entitlement is shared. The planned guide How Much Paid Carer's Leave Do You Get? gives balance examples.

Casual employees generally do not accrue the paid balance, so there is no National Employment Standards paid personal leave to roll over while they remain casual.

What Happens When Hours Change?

Moving from full-time to part-time generally changes future accrual, not the existing accrued hours. Those hours remain available. Moving from part-time to full-time increases future accrual from the effective change.

Because leave is stored in hours, a balance built under one roster can be applied to ordinary hours missed under a later roster. The payment is generally based on the employee's base rate when leave is taken.

Payroll should document the effective date and preserve the ledger. Employees can ask for written confirmation when changing employment type or ordinary hours.

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Does the Balance Transfer to a New Employer?

Generally no. Personal leave is tied to the employment relationship in which it accrued. Resigning from one employer and starting with another usually means beginning a new balance with the new employer.

Special situations can differ, including certain transfers of employment, public-sector arrangements or enterprise agreements. Employees involved in a business transfer should obtain advice about continuity and recognised service.

A return to the same employer after employment genuinely ended does not automatically restore the old balance. The contract and applicable workplace law need to be checked.

Business Transfers and Related Employers

When a business is sold or work moves to another entity, continuity can be more complicated than an ordinary resignation and new job. Transfer-of-employment rules, recognition of service and the terms offered by the new employer can affect accrued entitlements.

Do not assume that a similar logo, workplace or manager means the legal employer stayed the same. Check the employing entity on payslips, the transfer letter and any statement about recognised service and personal leave.

Employees should obtain advice before signing away or accepting a changed balance in a business transfer. The outcome depends on facts beyond the general rollover rule.

Is Carried-Over Leave Paid Out?

The Fair Work final pay guidance states that sick and carer's leave is not paid out when employment ends. This differs from unused annual leave, which generally forms part of final pay.

Termination by the employer, resignation and retirement do not ordinarily change the National Employment Standards position. A more generous registered agreement or contractual promise should be checked separately.

The detailed comparison is in Does Sick Leave Get Paid Out When You Leave a Job?.

Cashing Out Is a Narrow Exception

Cashing out during employment is not the same as payout on termination. The Fair Work cashing-out guidance says most awards do not allow it. It may occur under specified awards or a registered agreement that permits it.

Where allowed, each cash-out requires a separate written agreement, the employee must retain at least 15 days of untaken paid sick and carer's leave, and payment must be at least what the employee would have received if leave were taken.

An employer cannot simply delete a balance and call it cashing out. Employees should verify coverage and conditions before agreeing.

Notice and Evidence Still Apply to Old Hours

Carried-over leave is not automatically approved when requested. The employee must still take it for a permitted reason, notify the employer as soon as practicable and provide reasonable evidence when requested.

The Fair Work evidence page says evidence can be requested for one day or less. The age or size of the balance does not remove that requirement.

A medical certificate should reflect an actual clinical assessment and supported period. Dociva does not backdate certificates or issue evidence merely because leave is available.

Checking a Rollover Problem

1. Save payslips or leave statements before the year changes.
2. Compare closing and opening balances in hours.
3. Check for approved leave deducted near the reporting boundary.
4. Confirm any change from full-time to part-time or vice versa.
5. Ask payroll whether balances appear in separate current and carried fields.
6. Request the accrual ledger and applicable award or agreement provision.
7. Raise errors promptly and keep the response in writing.

The Fair Work sick and carer's leave fact sheet summarises progressive accrual and rollover. A union, payroll specialist or employment adviser can assist with complex histories.

Using a Large Balance Responsibly

An employee with a large carried balance may use it when genuinely unfit or providing qualifying care. The amount used should reflect ordinary hours missed and the supported period.

The employee should not delay needed treatment out of concern that leave will disappear, nor take unnecessary leave because it will not be paid out. Health needs and honest evidence should drive the decision.

If a condition is prolonged, involve the treating team and employer early. Fitness, modified duties, workers compensation or workplace adjustments may become relevant beyond ordinary personal leave.

When the Payroll Balance Looks Lower After Rollover

A lower display can result from approved leave processed late, a switch from days to hours, a changed ordinary-hours pattern or separate screens for current and carried entitlement. Ask for the transaction ledger before assuming hours were deleted.

Compare the date, quantity and reason for each deduction. If payroll corrected an earlier overstatement, it should explain the calculation and legal basis rather than silently changing the figure.

Keep copies of year-end payslips and balance statements. A documented sequence is more useful than a screenshot taken only after the discrepancy appears.

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Using Dociva

Dociva currently accepts online requests for sick-leave, carer's leave, study and multi-day medical certificates. Each submitted request is independently reviewed by an Australian registered medical practitioner and may require further information.

A request does not guarantee a certificate. Dociva does not calculate or preserve leave balances, decide rollover disputes or backdate a certificate's issue date. The employer remains responsible for applying workplace entitlements.

For a suitable current illness request, review the medical certificate application. Dociva also provides broader online consultations when further clinical assessment is needed. Direct payroll questions to the employer, Fair Work, a union or an employment adviser.

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