A recent ELMO Employee Sentiment Index found that 43% of employees reported feeling burnt out in the final quarter of 2024, with 29% feeling overwhelmed at work.
In today’s workplace, employee wellness is a top priority, with mental health support gaining significant attention. One popular initiative is wellness leave, or wellbeing days, which allows employees time off to manage stress, recharge, or focus on their mental wellbeing.
This approach not only improves mental health but also boosts productivity and engagement. Research shows that flexible leave policies correlate with higher productivity and better mental health outcomes.
As employee burnout and mental health claims rise, wellbeing leave provides a much-needed opportunity for workers to return refreshed, helping organisations create a supportive work culture and enhance long-term success.
In this article, we’ll explore five innovative wellbeing leave options that forward-thinking companies are implementing to transform their workplace culture.
Table of Contents
What is wellbeing leave?
Wellbeing leave, also known as “wellness leave” or “wellbeing days,” are designated time-off periods that employees can use specifically to address their mental, emotional, and physical health needs.
These leaves allow employees to take time away from work to manage stress, focus on their mental health, or simply relax and recharge. In addition to traditional vacation and sick leave, wellness leaves are often included in paid-time-off packages.
Wellbeing days are designed to give employees the opportunity to step back and return to work with a refreshed mindset. Employers and managers must trust their teams to use this time effectively, whether that means resting at home or taking time for personal activities.
There are clear precedents for embedding wellbeing leave in the workplace. ReachOut, a digital youth mental health service, introduced “reflection leave” to encourage employees to prioritise personal health and development, receiving positive feedback, though they emphasise the importance of clear approval processes to ensure the leave is used appropriately.
Lendlease in Australia introduced wellbeing days each quarter, which increased employee engagement and productivity. They recommend flexibility in how well-being days are used, ensuring they do not disrupt team productivity.
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What’s the difference between wellbeing leave and sick leave
Sick leave and wellbeing leave serve distinct purposes, with each providing employees time away from work for different reasons.
Sick leave, also known as personal leave is intended for situations when an employee is unwell or dealing with a medical issue, offering time off for recovery. The National Employment Standards (NES) entitle full-time employees to 10 paid personal leave days per year, with personal leave accruing and carrying over into subsequent years.
Employers may request a medical certificate for personal leave, but employees are not legally obligated to provide one. Instead, they may opt to submit a statutory declaration if they are not comfortable providing a medical certificate.
In contrast, wellbeing leave does not require a medical condition or doctor’s certification and is often taken at the employee’s discretion to prevent burnout or manage stress. It is typically more flexible and can be taken as needed, with pay status varying by employer—some include paid wellness leave in their benefits package, while others do not.
Mental health leave is generally considered a kind of wellbeing leave. Under the Fair Work Act in Australia, a mental health day off may be considered part of sick or personal leave.
As stress and mental health issues are not considered triggers for sick leave under the NES, there is some flexibility for both employees and employers here. Generally, employers opt to consider stress and mental health issues as a form of personal illness, which triggers sick leave.
Why is wellbeing leave important?
Implementing wellbeing leave offers numerous benefits for both employees and employers, contributing to a more positive workplace culture, enhanced productivity, and improved mental health.
Some of the benefits of wellbeing leave are:
- It demonstrates employee value and shows that employers trust and care about their team’s personal wellness needs. This can also help in attracting new talent.
- Enhances wellbeing and performance while reducing burnout, improving focus, and increasing productivity when employees return refreshed. There is a direct link between employee wellness and productivity; a healthy and happy workforce is more efficient, experiences fewer absences, and consistently delivers high-quality work.
- Strengthens workplace relationships and promotes better communication, collaboration, and a culture where employees support each other. As a result, companies experience greater retention, lower turnover costs, and long-term business success.
- Supports holistic health and decreases stress-related ailments while nurturing emotional, social, and psychological resilience beyond the absence of illness.
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5 types of wellbeing leave to consider for your organisation
Now that you’ve learned about wellbeing leave, here are five specific types to consider implementing in your workplace. Each offers unique benefits for both employees and your organisation.
Note that only community service leave is an entitlement under the National Employment Standards. The other forms of leave are discretionary, as further explained below.
Community service leave
Community service leave allows employees to participate in charitable, civic, or public service activities, including voluntary emergency management and jury duty.
Community service leave encourages employees to give back to their communities, builds a positive company reputation, and develops employee leadership skills outside the workplace.
| Our Community service leave policy template provides a comprehensive framework that meets legal requirements while demonstrating your organisation’s commitment to social responsibility. |
Mental health leave
Mental health leave helps employees to take time off when experiencing mental health challenges such as stress, anxiety, depression, or burnout. This leave reduces the stigma around mental health issues, prevents productivity loss from presenteeism, and shows genuine care for employee well-being.
| You might find value in our Mental health leave policy template, which offers clear guidelines for both employees and managers while maintaining appropriate confidentiality. |
Public holiday swap leave
A public holiday swap leave allows employees to exchange a public holiday for another day off when the scheduled holiday doesn’t align with their preferences or work schedule. This increases schedule flexibility, accommodates diverse cultural and personal preferences, and improves work-life balance for your team.
| Looking to implement this option? The public holiday swap policy template we’ve developed has been successfully used by several major Australian employers. |
Cultural leave for First Nations employees
This paid leave enables indigenous employees to participate in cultural, spiritual, or ceremonial activities important to their heritage and community and demonstrates respect for indigenous cultures, supports diversity and inclusion initiatives, and helps retain indigenous talent.
| Consider adapting our Cultural leave for first nations employees policy template to create a policy that genuinely respects and supports Indigenous cultural practices. |
Climate emergency leave
Climate emergency leave allows employees time off during climate-related emergencies or natural disasters, either to personally respond or to volunteer and support others affected. It provides practical support during crises, aligns with corporate social responsibility goals, and addresses growing climate concerns.
| The Climate emergency leave template from Lawpath can be easily customised to reflect your organisation’s environmental values and emergency response approach. |
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FAQ
What are the legal considerations for offering wellbeing leave?
There are several legal considerations for offering wellbeing leave including ensuring compliance with workplace regulations, protecting employee rights, and maintaining fairness in the workplace.
Elevate your workplace: Implementing strategic wellbeing leave
Wellbeing leave goes beyond standard entitlements to create thriving workplaces. By prioritising mental health, you’ll boost productivity, engagement, and culture while building resilient teams. This strategic advantage reduces stigma, prevents burnout, and positions your organisation as an employer of choice in today’s competitive talent market.
Ready to transform your workplace? Speak with one of our lawyers today to develop a wellbeing leave strategy tailored to your organisation’s unique needs.
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