Unpaid leave refusal is one of the most common questions employers ask: is it okay to deny an unpaid leave request? There is no one simple answer, because the right approach depends on the reason for the leave and whether the request falls under minimum leave entitlements.
In many situations, employers are not required to approve unpaid leave. However, some types of leave form part of minimum workplace standards and should be granted when eligibility requirements are met. In other cases, refusing leave can increase legal and employee relations risk—especially where it could lead to unlawful discrimination concerns.
This article explains when unpaid leave is discretionary, when refusals may be limited, and how to make consistent decisions that protect your business.
When Unpaid Leave Is Discretionary
In many workplaces, unpaid leave is granted (or declined) by agreement between employer and employee. Common examples include unpaid leave for:
- Study
- Sabbatical
- Appointments (unless they are prenatal appointments)
In these situations, unpaid leave approval is usually at the employer’s discretion—provided you apply decisions fairly and consistently.
Notice requirements and evidence
Employees should give notice as soon as practicable. Employers can also request evidence to support an application for unpaid leave (where reasonable).
If an employee cannot provide appropriate evidence, that may provide substantiated grounds for unpaid leave refusal, depending on the circumstances and the operational impact of the request.
When You Have Limited Grounds to Refuse: NES Leave Entitlements
Under the National Employment Standards (NES), employees have minimum entitlements for certain types of leave. For these categories, there can be limited grounds to deny requests when employees provide appropriate evidence, such as:
- statutory declarations
- doctor certificates
- court-issued documents (where relevant)
Below are key examples where employers should be cautious about refusing leave.
Unpaid Carer’s Leave: 2 Days Per Occasion (After Sick Leave Is Used)
If an employee has exhausted their accrued personal/sick leave, they are entitled to request and receive 2 days of unpaid carer’s leave per occasion to:
- take time for themselves, and/or
- care for an immediate family or household member due to illness, injury, or emergency
Practical guidance: If the request meets the eligibility requirements and the employee provides appropriate evidence, employers typically have limited grounds for unpaid leave refusal in this scenario.
Unpaid Family and Domestic Violence Leave: 5 Days Per Year
Where an employee is dealing with circumstances of Family and Domestic Violence (FDV), they are entitled to 5 days of unpaid Family and Domestic Violence Leave each year.
Key points:
- This entitlement does not accrue
- It resets annually
FDV leave should be granted to support actions related to the ongoing circumstance, such as:
- investigations
- court proceedings
- arranging safety for the employee and/or family members
Practical guidance: FDV leave is sensitive and time-critical. Ensure requests are handled confidentially and consistently, and that managers understand evidence expectations and privacy considerations.
Compassionate Leave: 2 Days Paid Per Occasion (Including Miscarriage or Stillbirth)
If an employee’s immediate family or household member has been diagnosed with a life-threatening illness or has died, an employee can request 2 days of paid compassionate leave per occasion.
Employees are also entitled to compassionate leave if a de facto partner or spouse experiences a miscarriage or stillbirth.
Definition: Immediate family or household member
This includes a:
- current or former spouse
- current or former de facto partner
- grandparent, grandchild, sibling, or child of the employee (or of the employee’s spouse/de facto partner, current or former)
Practical guidance: Compassionate leave is not an area where employers should take a rigid approach. Refusal can create significant risk—both legal and cultural—if handled poorly.
Training or Study Leave: When Refusal May Be Reasonable
Employees may request unpaid leave to undertake training or study efforts. However, employers can refuse where they can reasonably determine that:
- the study has no relevance to the business, and/or
- the employee is requesting an unreasonable amount of time to complete it
Tip: If you decide on unpaid leave refusal here, document your reasons clearly and consider alternative options (shorter leave, partial unpaid leave, or flexible scheduling).
Unpaid Leave Refusal and Workplace Culture: The Retention Factor
Sometimes the leave decision is not only about entitlement—it’s also about work-life balance, productivity, and retention. In many industries, flexibility is increasingly important to employee satisfaction.
Denying a reasonable request can sometimes:
- reduce engagement
- impact performance
- increase the risk of losing a strong employee
Where possible, consider whether a compromise (shorter leave, staged leave, or adjusted duties) could meet both business and employee needs.
Be Fair and Consistent to Avoid Unintended Precedents
Employers should be fair and consistent with leave decisions, ensuring evidence and reasoning support the outcome. Your decisions also create expectations.
For example:
- If you approve one month of unpaid leave for an employee due to an extended family member’s illness, another employee may expect similar treatment for a comparable request involving a direct family member illness.
Best practice: Use consistent criteria (reason, evidence, operational impact, duration, prior approvals) so decisions are defensible and repeatable.
Communicate Early and Plan Leave to Reduce Disruption
Open communication helps reduce stress and prevents operational surprises—especially for leave related to illness, surgery, or caring for another person, which may impact future work capacity.
When leave is likely to be extended:
- confirm expected leave duration (or review points)
- plan coverage and handover
- discuss return-to-work expectations where relevant
- confirm documentation requirements
Planning with the employee reduces disruption to your business and supports better outcomes for everyone.
Need Help Managing Leave Requests?
Employee leave and entitlements can be complex and subject to ongoing reform, particularly where circumstances differ by employment type and supporting documentation.
Assurance HR has specialists in Human Resource Management who can help you navigate employee leave through advice and/or drafting appropriate notices and agreement adjustments. Contact us today on 1800 577 515 and let us reduce your HR workload.
