Study and exam leave in Australia
Reviewed by Mellow Editorial Team, HR & payroll content team
Employers in Australia are not required by law to provide paid study or exam leave under the National Employment Standards — but many awards, enterprise agreements and employment contracts do include it, and handling these entitlements correctly matters.
What the law actually says
The National Employment Standards (NES) set the minimum floor for most Australian employees. Study and exam leave is not part of the NES. That means there is no universal statutory entitlement to paid time off for study or exams.
What does govern it, in practice, is the industrial instrument or contract that applies to your employee:
- Modern awards — some awards include study leave provisions, typically for employees undertaking work-related qualifications. The terms vary significantly: some awards provide a set number of paid hours per subject, others cover exam time only.
- Enterprise agreements — many EAs negotiated in industries with high training investment (construction, health, professional services) include more generous study leave clauses.
- Employment contracts — if your organisation has offered study leave as a contractual benefit, it is enforceable even where no award or EA requires it.
If none of these apply, study and exam leave is entirely at your discretion as an employer.
Checking what applies to your workforce
The starting point is identifying which award or agreement covers each role. You can search the Fair Work Commission's award and agreement finder to confirm coverage. Once you have the instrument, look for clauses relating to:
- training leave, study leave or education leave
- exam leave specifically
- notice requirements the employee must meet
- whether the course needs to be work-related or approved by the employer
- whether leave is paid or unpaid, and at what rate
Some awards phrase it as a right to attend exams without loss of pay. Others give the employer discretion to approve leave for relevant study. The distinction matters, because a discretionary clause does not create an automatic entitlement.
Handling requests as an employer
Where study leave is discretionary, a consistent written policy protects both parties. It reduces the risk of ad hoc decisions that could later be viewed as discriminatory or unfair, and it helps employees plan their study commitments with realistic expectations.
A practical policy typically covers:
- which types of courses or qualifications are eligible (work-related only, or broader)
- how much leave is available per year or per subject
- what notice and documentation the employee must provide
- whether leave is paid or unpaid, and whether the employee must repay costs if they leave within a certain period
- how exam leave interacts with other leave balances
It is worth being specific. A policy that says "reasonable study leave may be granted" invites disputes. One that says "up to two days paid leave per exam sitting, subject to manager approval and three weeks' written notice" is much easier to apply.
Paying employees correctly during study leave
Where study leave is paid, it is treated as ordinary pay. That means:
- PAYG withholding applies as normal, based on the employee's tax file declaration and any HECS/HELP repayment obligation
- Superannuation Guarantee contributions apply — currently 12% of ordinary time earnings — because the employee is being paid their ordinary rate
- Single Touch Payroll reporting occurs at each pay event as usual
If leave is unpaid, there is nothing to withhold or report for those days. Be aware that unpaid leave may affect calculations for other entitlements depending on the applicable award — some awards specify whether unpaid leave counts as service for accrual purposes.
Supporting employees without creating unintended obligations
Many employers want to support staff who are studying without accidentally creating an enforceable entitlement that is harder to remove later. A few practical approaches:
Use a policy, not a contract clause. Policies can be varied with reasonable notice. Contractual terms are harder to change without employee agreement.
Be clear about approval conditions. If you want to retain discretion, state that explicitly. Approval in one case does not automatically set a precedent if your policy makes clear that each request is assessed on its merits.
Document approvals. Keep a record of what was approved, for which course, and on what basis. This is useful if a dispute arises or if you are reviewing the policy later.
Consider the link to retention. Employers who invest in their people's development — even informally — tend to see lower turnover. That is worth factoring into how generously you approach discretionary requests, even where you have no legal obligation to grant them.
The core principle is straightforward: know what your industrial instrument requires, build a clear written policy around any discretion you have, and apply it consistently.
---
Run HR and payroll in Australia with Mellow
Mellow brings HR, payroll and 12 AI agents into one platform — built to handle Australia properly, with payroll included, from £4 per employee per month. The AI agents don't just answer questions; they generate contracts, run cost estimates and draft letters for you.
[Start a free trial →](/register)