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Understanding Leave Entitlements for Nannies

By Mark Hudson · 29 September, 2025
Understanding Leave Entitlements for Nannies

Understanding Leave Entitlements for Nannies

When you employ a nanny in Australia, you step into the role of an employer under the Fair Work Act 2009. This means your nanny is entitled to the same basic leave conditions as other employees, unless their contract states otherwise (and remains compliant with the law).

The key types of leave to be aware of are:

  • Annual Leave (Holiday Pay)
  • Personal/Carer’s Leave (Sick Leave)
  • Public Holidays
  • Other Leave Types (Parental, Community Service, Unpaid Leave)

Annual Leave (Holiday Pay)

Full-time nannies are entitled to four weeks of paid annual leave for every 12 months of service. For part-time nannies, this is calculated on a pro-rata basis, depending on the hours worked each week.

Annual leave:

  • Accrues progressively during the year.
  • Can be taken at any time with employer approval.
  • Must be paid at the nanny’s base hourly rate for the ordinary hours they would have worked.

Some families also choose to allow their nanny to “cash out” leave (if agreed in writing), but strict rules apply.

==> See Fair Work Ombudsman guidance: Annual leave.

Sick Leave and Carer’s Leave

This is officially called personal/carer’s leave. A full-time nanny is entitled to 10 days per year, accrues progressively and carries over each year.

This leave covers:

  • Time off when the nanny is sick or injured.
  • Time off to care for an immediate family or household member who is ill or requires support.

For part-time nannies, this entitlement is pro-rated.

If your nanny is absent, you are entitled to ask for reasonable evidence such as a medical certificate or statutory declaration.

==> Reference: Personal/carer’s leave.

Public Holidays

Nannies are entitled to a paid day off on a public holiday if it is a day they would normally work.

Key points:

  • If the nanny would not normally work on that day, no payment applies.
  • If you require your nanny to work on a public holiday, they are entitled to penalty rates or an agreed alternative day off, depending on the employment agreement.
  • Public holidays vary by state and territory, so it’s important to check your local calendar.

==> Check state/territory public holidays: Australian public holidays.

Other Types of Leave

While less common, your nanny may also be entitled to:

  • Parental Leave: Unpaid leave if they meet the eligibility criteria.
  • Community Service Leave: For jury duty or emergency service roles.
  • Unpaid Leave: By mutual agreement between family and nanny.

How to Manage Leave Correctly

Managing leave can feel overwhelming, but with the right systems in place, it becomes straightforward. Families should:

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  1. Use a written employment agreement that clearly sets out leave entitlements.
  2. Keep records of hours worked, leave taken, and payments made, as required under the Fair Work Act.
  3. Stay compliant with payroll obligations, including PAYG withholding, superannuation, and leave accruals.
  4. Use a payroll service like Pay The Nanny to handle leave accruals and reporting automatically, ensuring compliance with Fair Work and the ATO.

Why Compliance Matters

Getting leave entitlements wrong can expose families to:

  • Back-pay claims.
  • Penalties for breaching employment laws.
  • Relationship strain with your nanny.

By understanding your obligations, you create a fair, transparent, and professional working relationship that benefits everyone.

How Pay The Nanny Can Help

At Pay The Nanny, we specialise in payroll and compliance for families who employ nannies. We handle:

  • Correct accrual of annual and personal leave.
  • Public holiday pay calculations.
  • Superannuation and PAYG compliance.
  • Clear payslips that show your nanny exactly what they’re entitled to.

That way, you can focus on family life while knowing everything is handled correctly.

Get in touch with us today.

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