Can You Take a "Senior Gap Year" From Work? Understanding Extended Leave Without Pay in Australia

By Brian AJ Newman Employment and Human Rights Advocate MYUNION

More Australians Are Asking the Same Question

After decades in the workforce, many older employees reach a point where they want to take a break—not because they are retiring, but because they want time to travel, spend time with family, care for loved ones, improve their health, or simply experience life before eventually returning to work.

Some call it a "senior gap year."

Unlike younger workers who may take a gap year before beginning their careers, many older Australians are now looking for a temporary break before transitioning into retirement.

A common question is:

"Can I take a year off work without resigning?"

The answer is possibly, but it depends on your employment contract, any applicable industrial instrument, your employer's policies, and whether your employer agrees to the request.

Can You Take a "Senior Gap Year" From Work? Understanding Extended Leave Without Pay in Australia

There Is No General Right to Extended Leave Without Pay

One of the biggest misconceptions is that employees automatically have a legal entitlement to take lengthy periods of unpaid leave.

Generally speaking, they do not.

The National Employment Standards (NES) contained in the Fair Work Act 2009 (Cth) provide minimum entitlements such as:

• annual leave;

• personal/carer's leave;

• compassionate leave;

• community service leave;

• unpaid parental leave;

• family and domestic violence leave; and

• long service leave (through separate State and Territory legislation).

However, the NES does not create a general entitlement to take extended leave without pay for personal travel or lifestyle reasons.

That does not mean it cannot happen.

It simply means it usually requires agreement.

What Is Leave Without Pay?

Leave without pay (LWOP) is exactly what its name suggests.

The employment relationship continues, but:

• wages are not paid;

• the employee is temporarily absent from work;

• the position is generally held open for an agreed period;

• the employee usually returns at the conclusion of the leave.

The arrangement is normally created by agreement between employer and employee.

Check Your Employment Contract First

The first place to look is your:

• employment contract;

• enterprise agreement;

• modern award;

• workplace policy.

Some employers have formal career break policies.

Others have provisions allowing:

• career breaks;

• lifestyle leave;

• purchased leave;

• sabbaticals;

• extended leave without pay.

Many larger employers have policies that employees never realise exist.

Employees Covered by the SCHADS Award

Many employees working in:

• disability support;

• aged care;

• community services;

• homelessness services;

• family services;

• mental health;

• social work;

are covered by the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award), unless an enterprise agreement applies.

The SCHADS Award provides numerous leave entitlements.

However, it does not create a general entitlement to take a twelve-month lifestyle break without pay.

That means any extended leave would generally need to be negotiated with the employer unless another industrial instrument provides such an entitlement.

Long Service Leave May Also Be Available

Employees with lengthy service should also consider whether they have accrued long service leave.

Long service leave is governed by State and Territory legislation (or, in some cases, enterprise agreements).

Depending on where you work, it may be possible to combine:

• annual leave;

• long service leave; and

• leave without pay

to create an extended period away from work.

This approach can sometimes make an employer more receptive because part of the absence is covered by accrued entitlements rather than entirely unpaid leave.

Why Employers Sometimes Approve These Requests

Many employers recognise that retaining experienced staff is often easier and less expensive than recruiting and training replacements.

A senior employee with:

• extensive organisational knowledge;

• professional qualifications;

• long service;

• established client relationships;

• specialist skills;

may be far more valuable than a new employee who requires months of training.

Granting a temporary leave arrangement may therefore benefit both parties.

Factors an Employer May Consider

When deciding whether to approve an extended leave request, an employer may consider:

• length of service;

• work performance;

• operational requirements;

• staffing shortages;

• ability to backfill the position;

• cost of temporary replacement staff;

• organisational policies;

• previous leave history;

• anticipated return date.

Each workplace will balance these issues differently.

There Is No Obligation to Approve Every Request

Because general lifestyle leave without pay is usually discretionary, employers are not necessarily required to approve every application.

That does not mean employees should be discouraged from asking.

Many employers are open to flexible arrangements where requests are:

• made well in advance;

• supported by clear planning;

• realistic in duration;

• consistent with operational needs.

Providing significant notice often increases the likelihood of approval.

How Should You Raise the Request?

Rather than presenting the proposal as an ultimatum, many employees find greater success by approaching it collaboratively.

For example:

"I've greatly enjoyed working here over the past seven years and hope to continue contributing for many years to come. Before I eventually retire, I'd like to discuss the possibility of taking an extended period of leave without pay during 2027, with the intention of returning to my current role afterwards. I wanted to raise the idea early to allow sufficient time for planning."

This approach demonstrates commitment rather than disengagement.

What Should Be Discussed?

If the employer is open to the idea, the parties should clearly discuss:

• commencement date;

• return date;

• whether the position will be held open;

• accrual of leave during the absence;

• continuity of service;

• superannuation implications;

• treatment of public holidays;

• maintaining employment benefits;

• notification requirements if circumstances change.

Where possible, any agreement should be recorded in writing.

Will Your Employment Continue?

Generally, yes.

Leave without pay does not usually terminate employment.

However, the effect on:

• continuity of service;

• leave accrual;

• redundancy calculations;

• long service leave;

• other employment benefits

may depend upon:

• legislation;

• industrial instruments;

• the specific terms of the agreement.

Employees should understand these consequences before commencing lengthy unpaid leave.

Flexible Work May Be Another Option

Some employees discover that they do not actually need twelve months away from work.

Alternative arrangements may include:

• part-time employment;

• compressed working weeks;

• purchased leave;

• gradual retirement;

• job sharing;

• seasonal work patterns.

A combination of these options may better suit both employee and employer.

The Value of Early Conversations

One of the biggest mistakes employees make is waiting until the last minute.

Giving an employer six to twelve months' notice allows time to:

• recruit temporary staff;

• restructure workloads;

• arrange internal secondments;

• budget for replacement employees.

Early planning often results in better outcomes for everyone involved.

Final Thoughts

Australians are living longer, working later and increasingly redefining what retirement looks like. Many employees no longer want to move directly from full-time work into permanent retirement. Instead, they are seeking greater flexibility to travel, spend time with family, volunteer, pursue personal interests or simply recharge before returning to meaningful work.

Although Australian workplace laws do not generally provide an automatic entitlement to take a "senior gap year," many employers are willing to consider extended leave without pay where the request is reasonable, well-planned and operationally achievable.

If you are considering an extended career break, start by reviewing your employment contract, any applicable enterprise agreement or modern award, and your employer's leave policies. Then approach the conversation early, professionally and collaboratively. With good planning, what begins as a discussion about taking time away from work may ultimately become an opportunity for both you and your employer to achieve a positive outcome.

Relevant Legislation

• Fair Work Act 2009 (Cth) – National Employment Standards (Part 2-2)

• Fair Work Regulations 2009 (Cth)

• Applicable State or Territory Long Service Leave legislation

• Relevant Modern Award or Enterprise Agreement (including the SCHADS Award where applicable)

Disclaimer: This article provides general information only and is not legal advice. Whether an employee can take extended leave without pay depends on the terms of their employment contract, any applicable modern award or enterprise agreement, workplace policies and the agreement reached with their employer. If you are considering an extended career break and would like assistance understanding your workplace rights or negotiating a leave arrangement, seek advice specific to your circumstances. MYUNION provides advocacy and representation in employment and human rights matters but is not a law firm and does not provide legal services.