Working after the loss of a loved one

The loss of a loved one can be one of life’s most heartbreaking and derailing moments.

While the significance of loss varies between individuals, recent Australian data reveals over 1.6 million Australians experience grief annually, with around 1 in 10 experiencing grief-related mental health challenges (Griefline, 2025). This represents a significant workplace mental health issue that many organisations are still learning to address effectively.

Legal Requirements Under the Fair Work Act 2009

While the Fair Work Act 2009 only stipulates compassionate leave in certain circumstances*, we know that all losses have the potential to affect us. The loss of a close friend, a colleague, or a beloved pet can all potentially bring on what’s known as ‘career shock’ yet current legislation doesn’t recognise these relationships.

Under current Australian law, compassionate leave applies when:

• a member of their immediate family or household dies, or contracts or develops a life-threatening illness or injury; 
• a baby in their immediate family or household is stillborn; 
• they have a miscarriage; or their current spouse or de facto partner has a miscarriage. 

So, while legally workplace bereavement policies do not have to extend outside one’s immediate family or household, it’s important to be mindful of the individual and the very real impacts. That might not necessarily mean widening the scope of your bereavement leave policies (though we would encourage considering this in the context of supporting your people), it means leading with compassion and empathy, and recognising that each individual manages grief in their own unique way. What’s important, is how we support them.  

Loss and career shock

The unexpected loss of a loved one is one of the most common traumatic experiences and is associated with the development of mental health issues and, in a workplace context, can lead to low performance or even premature resignation.  

Our Crises and Career Shocks Transition Guide states: “Those who face loss can experience a great sense of burden, shock, confusion and grief, and the effects of loss and grief may continue after people return to work. Those who experience major loss also tend to take increased sick leave, reduce work hours, show increased redundancy rates, and have an increased likelihood of changing jobs.”  

At an organisational level, when individuals are feeling the effects of loss, it may present in the form of increased absenteeism, increased presenteeism, impacts to the wider team culture and even high turnover.  

So, what should employers do to best support people through this time?

First, like all transitions, an individual approach is key. That means putting aside your own feelings and assumptions, and talking with the individual.  

Grief doesn’t follow a timeline, and effects can emerge months after the initial loss. Regular check-ins demonstrate ongoing support and help identify when additional assistance might be needed.

• Allow employees to make decisions about their support
• Don’t assume what they need (they may not want work removed from their plate)
• Recognise that each individual requires different levels of support

Consider flexible working arrangements

Forward-thinking organisations are expanding beyond minimum legal requirements, with 2025 trends showing; extended leave durations of 2-4 weeks (up from traditional 2-3 days), broader family definitions including chosen family, friends, and pets, integration of “grief days” for ongoing support beyond initial bereavement, and more cultural sensitivity for diverse communities.

More options to consider:

• Extended compassionate leave for complex grief situations
• Personal leave integration for ongoing mental health support
• Purchased leave arrangements for additional time off
• Flexible return-to-work programs with reduced hours or responsibilities

Manager training

With nearly 58 per cent of managers reported experiencing burnout (AIM, 2023), managers are dealing with a lot. In order for them to lead well, organisations can support them by increasing manager capability.

Examples of manager capabilities include:

• Recognising signs of grief-related distress
• Having supportive conversations
• Understanding available support resources
• Knowing when to connect people to HR or EAP services
• Managing team dynamics when a colleague is grieving

At a whole-of-organisation preventative level you can develop and promote policies so your people know they can get the support they need during times of loss. That can also mean training your managers so they know how to support individuals through these rocky times. A strong foundation of support can help mitigate some of the negative effects that can present during this transition.  

What should individuals impacted by loss do?

It’s important to note that even in the most supportive workplace culture, it’s not always easy to recognise when someone is struggling.  

Grief can come at you from all angles. Sometimes it can shock you months after the loss.  

It’s important for individuals to keep communicating with their employer. Remember, it’s OK to struggle. Most organisations will want to do all they can to support you through your loss. The important thing is to speak up when you’re struggling, and ask for any workplace adjustments you need during this time.  

You might also want to seek support from your valued colleagues at this time. Social connections can be really important during times of distress, combined with routine, structure and self-care. 

In addition, make sure you seek external help if you need it. That could mean a conversation with your GP, or accessing an Employee Assistance Program (EAP) through your organisation if it is available. Beyond Blue also has a great resource that may be helpful – Grief and loss – Beyond Blue.  

External support options

• GP consultation for mental health care plans
• Beyond Blue grief and loss resources
• Griefline Australia 1300 845 745

The loss of a loved one is a huge transition. Like all transitions, there’s opportunity for growth, both at an organisational and individual level. It all starts with having an individual, tailored approach to support. Loss is never an easy thing to deal with, but with the right supports in place we can navigate this transition well together.  

Learn more about how we can help you navigate crisis and career shock transitions. 

Last updated: June 2025

*Under the Fair Work Act, compassionate leave can only be taken if: a member of their immediate family or household dies, or contracts or develops a life-threatening illness or injury; a baby in their immediate family or household is stillborn; they have a miscarriage; or their current spouse or de facto partner has a miscarriage. An employee’s immediate family includes their spouse or former spouse, de facto partner or former de facto partner, child, parent, grandparent, grandchild or sibling. Immediate family also includes the immediate family of the employee’s spouse or de facto partner (or former spouse or de facto partner), step-relations or adoptive relations. Employees can take compassionate leave for other relatives (for example, cousins, aunts and uncles) if they are a member of the employee’s household or if their employer agrees.