The Employer’s Guide to Managing Sick Leave in Australia

Author Image Written by Garth Belic

An overview of sick leave entitlements and best practices for managing sick leave for employees in Australia.

Sick leave is an entitlement for employees in Australia, and as an employer, it's important to understand the rules and practices regarding sick leave to create a supportive workplace. 

So in this guide, we give you everything you need to know about sick leave entitlements, best practices for administration, and answers to frequently asked questions.

 

Employees are also entitled to annual leave, which they can utilise at their discretion, unlike sick leave. 

Let’s get into it:

Employee Type

Annual Sick Leave Entitlement

Full-time

10 days per year

Part-time

Pro-rata of 10 days

Casual

Not entitled

Casual and contract workers

Up to 38 hours per year in Victoria

 

One of the key things about sick leave is that it accumulates. Unused sick leave rolls over to the next year, so employees can build up their entitlement over time. 

Carer's leave, which is used to support a sick or injured family member, also accumulates but is distinct from sick leave. This is a safety net for employees during long periods of illness or injury. Sick leave entitlements are accrued based on the employee's ordinary work hours, ensuring that both full-time and part-time employees can accumulate leave proportionately.

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Employees may need to submit a medical certificate to their employer for longer absences. 

This means:

  • Physical illnesses such as the flu, infections or recovery from surgery
  • Mental health issues such as stress, anxiety or depression
  • Pregnancy-related illness that prevents them from performing their duties
  • Unexpected emergency situations affecting their household

In addition to personal sick leave, employees can also take carer’s leave to care for an immediate family member or household member who is unwell. Personal leave is part of the broader sick and carer's leave entitlements, accommodating employees’ health needs while balancing workplace requirements. This includes:

  • Caring for a sick child, spouse or parent
  • Assisting a household member who requires short-term care during an illness.

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Develop a Policy

Create a sick leave policy that outlines the process for taking sick leave, including notice requirements, documentation needed and approval procedures. Put this policy into employment contracts and employee handbooks so it’s clear and consistent. 

Need further help ensuring your HR strategy is where it should be? Our HR Help team can help you streamline all aspects.

 

Keep Accurate Records

Good record-keeping is key to sick leave management. Update and store sick leave taken, entitlements and balances regularly. This helps with resource planning and forecasting for peak illness periods.

 

Keep Confidential

Treat any medical information provided by employees as confidential. Only share this information with relevant people such as HR or direct supervisors and get consent before sharing it with others.

 

Request Reasonable Evidence

For absences over two consecutive days, requesting medical certificates or other documentation is reasonable. Encourage open communication with employees and create a supportive workplace. Paid sick and carer's leave requires proper documentation to ensure compliance with workplace policies and legal standards.

 

Support Return to Work

When employees return from long-term sick leave, have a structured reintegration process in place. Work with them to discuss any adjustments to their workload or schedule so they feel comfortable and supported during the transition. Sick and carer's pay is crucial in supporting employees during their recovery and return to work.

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How is sick leave calculated for part-time employees?

Part-time employees get pro-rata sick leave based on their hours worked. For example, an employee working 25 hours a week would accrue approximately 6.33 hours of sick leave per month. 

This is calculated by dividing their weekly hours (25) by full-time hours (38) and multiplying by 10 days (the full entitlement). Sick leave is accrued based on an employee's ordinary hours, ensuring both full-time and part-time employees accumulate leave from their first day of work.

 

Can employers refuse sick leave?

Employers can only refuse to pay sick leave if the employee doesn’t give the required notice or provide the necessary documentation when asked. If there is a suspicion of sick leave misuse, handle the situation carefully and according to HR guidelines and legislation. Similarly, personal or carer's leave can be refused under these conditions, ensuring that the entitlements are not misused.

 

Does sick leave accrue during unpaid leave?

No, sick leave entitlement only accrues when an employee is on paid leave. During unpaid leave, such as unpaid parental leave, employees don’t accumulate sick leave.

 

Is unused sick leave paid out when employment ends?

Generally, unused sick leave is not paid out on termination of employment. This includes sick and carer's leave, which is generally not paid out on termination. However, review employment contracts, awards, or agreements as they may have specific provisions about the payout of unused sick leave.

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  • Full-time employees in Australia get 10 days paid sick/carer’s leave per year, part-time employees get pro-rata and casual employees have no paid sick leave.
  • Good policies, accurate records and confidentiality are key to sick leave management.
  • Employers can request medical evidence and refuse sick leave payments if notice or documentation is not provided, following process and legislation.
  • Open communication, supporting employees during their return to work and respecting their privacy create a positive workplace.