Do Sick Days Accrue for Employees in Australia?

Whether you’re growing a small team or hiring your very first employee, understanding sick leave is essential. It helps you support your people when they’re unwell and stay compliant with Australian workplace laws.

In Australia, sick leave is called personal/carer’s leave. It’s designed to give eligible employees paid time off when they’re sick or need to care for an immediate family or household member.

But do sick days accrue? How much is owed each year, and what about part-time and casual employees? In this guide, we’ll break down how accrual works, when it applies, and the practical policies you should have in place so your business is set up for success.

How Does Personal/Carer’s Leave Work Under Australian Law?

Personal/carer’s leave is part of the National Employment Standards (NES) under the Fair Work Act. It covers two main scenarios:

• When an employee is unfit for work due to illness or injury; and
• When they need to provide care or support to an immediate family or household member who is ill, injured, or facing an unexpected emergency.

Eligible employees can also access two days of compassionate leave for each permissible occasion, but that’s separate to personal/carer’s leave.

If you want a practical overview of entitlements, notice and pay, it’s worth reviewing how taking sick leave in Australia generally works from an employer and employee perspective.

Do Sick Days Accrue For Full-Time And Part-Time Employees?

Yes. For permanent employees (full-time and part-time), sick leave accrues progressively throughout the year based on ordinary hours of work.

Full-time employees are entitled to 10 days of paid personal/carer’s leave for each year of service. Part-time employees receive a pro-rata amount based on their ordinary hours. Accrual continues from year to year if it’s unused (there’s no annual “use it or lose it” rule for paid personal/carer’s leave).

Accrual Is Based On Hours, Not Calendar Days

Accrual is calculated on the employee’s ordinary hours of work, not on calendar days. In practice, this means the balance grows a little each pay period. If the employee’s hours change, the accrual rate adjusts accordingly.

Can You Cap Accrual?

No. The NES doesn’t allow you to cap paid personal/carer’s leave accrual below the statutory minimum. You can have policies that explain how to request leave and what evidence you require, but you can’t reduce the minimum entitlement.

Is Unused Sick Leave Paid Out On Termination?

No. Unused paid personal/carer’s leave is not paid out when employment ends. If you’re planning for offboarding, it helps to understand what happens to unused sick leave in Australia so you can communicate this clearly to employees.

What About Casual Employees?

Casual employees do not accrue paid personal/carer’s leave. However, they can access two days of unpaid carer’s leave per permissible occasion, and unpaid compassionate leave (as applicable under the NES).

It’s common to get questions about casual entitlements and medical evidence. If your workforce includes casuals, make sure your policy is clear on notice requirements and evidence. For a state-specific perspective, you might find this breakdown of casual sick leave entitlements in NSW helpful as a reference point (the NES applies nationally, and some details are reinforced in state-based resources).

How Is Sick Leave Accrued And Calculated?

Paid personal/carer’s leave accrues continuously for full-time and part-time employees over the course of their employment. Here’s what that looks like in practice.

1. Accrual Rate

Full-time employees accrue the equivalent of 10 days per year, which is then translated to an hourly balance based on ordinary hours. Part-time employees accrue a pro-rata amount. Accrual continues during paid leave (e.g. annual leave), but typically does not accrue during periods of unpaid leave (unless an award or agreement specifies otherwise).

2. Taking Leave In Hours

When an employee takes a sick day, you deduct the hours they would have worked. This maintains a fair and consistent approach for variable rosters.

3. Evidence Requirements

You can ask for reasonable evidence (for example, a medical certificate or statutory declaration) when an employee takes personal/carer’s leave. Your employment contracts and policies should explain when evidence is required, how to provide it, and who to notify.

Many employers prefer to set out expectations in an Employment Contract and the staff handbook to keep things consistent across teams.

Do Sick Days Accrue During Probation, Other Leave, Or The Notice Period?

This is a common area of confusion. Here’s a quick guide to help you apply the rules fairly.

Probation

Yes, personal/carer’s leave accrues from day one for permanent employees, including during probation. Employees can take the leave they’ve accrued (and more if you allow it) if they’re unwell.

Annual Leave

Personal/carer’s leave continues to accrue while an employee is on paid annual leave, because accrual is tied to ordinary hours of work.

Unpaid Leave

Generally, paid personal/carer’s leave does not accrue during unpaid leave (unless a relevant award, enterprise agreement, or employment contract says otherwise). If you expect extended unpaid absences, it’s worth checking how your policy and any modern award interact with the NES, and considering how unpaid leave will be managed across your team.

Long Service Leave And Parental Leave

The accrual position can depend on the relevant state or territory long service leave laws or the Paid Parental Leave scheme settings. As a rule of thumb, don’t assume accrual continues on extended unpaid periods without checking the specific framework that applies to your business.

During The Notice Period

If an employee is working out their notice and becomes unwell, they can use accrued personal/carer’s leave in the usual way. For more detail on managing this scenario, including pay and evidence, this guide to sick leave during the notice period covers the key points.

What Evidence Can You Require, And When?

It’s reasonable to ask for evidence that would satisfy a reasonable person that the leave is being taken because the employee is unwell or needs to care for someone. This might include a medical certificate or a statutory declaration.

You don’t have to wait for a certain number of days to request evidence-your policy can require it for any absence where you consider it appropriate. Just make sure the approach is consistent and clearly communicated to staff.

Medical Certificates For Short Absences

Some employers ask for certificates for single day absences, while others only require them after two or more days. Choose an approach that works for your workplace and document it so employees know what to expect. If casual staff also provide evidence from time to time, read the practical tips in this note on medical certificates for casual employees.

Medical Clearance To Return To Work

In some circumstances-especially after extended illness or where safety is a concern-you can request medical clearance certifying that the employee is fit to return to work and outlining any adjustments. This should be reasonable and aligned with your WHS obligations. For more guidance on when a request is appropriate, see this resource on medical clearance to return to work.

Policy Tips

• Explain how to notify the business about an absence (who to contact and by when).
• Set expectations for evidence and when it’s required.
• Describe how personal/carer’s leave accrues and how to check balances.
• Confirm how your business handles partial-day absences and medical appointments.

What Happens When Sick Leave Runs Out?

If an employee uses all of their paid personal/carer’s leave and still needs time away, they may request (or you may offer) unpaid carer’s leave or another form of leave. Many employers also allow employees to use annual leave if appropriate. It’s important to balance compassion with consistency and safety.

If you’re handling a complex or ongoing absence, practical strategies in this guide to managing sick leave when entitlements run out can help you map out the next steps and reduce risk.

Do You Need To Adjust Duties Or Hours?

Sometimes employees can return sooner with temporary adjustments-reduced hours, modified duties, or gradual return-to-work plans. This is often a win-win when it’s safe and workable.

Can You Request Further Information?

If you need clarity about capacity for work, you can request reasonable medical information. Stay focused on role requirements and safety rather than diagnoses, and apply the same approach to everyone to avoid discrimination risk.

What If The Role Can’t Be Performed Safely?

In rare cases, if the employee cannot perform the inherent requirements of their role even with reasonable adjustments, you may need to consider alternatives. Always proceed carefully and get advice early-unfair dismissal, general protections and discrimination laws can all be engaged in these situations. The right documents and a consistent process will protect both your team and your business.

Practical Steps To Get Sick Leave Right In Your Business

A clear, fair system helps everyone. Here’s a straightforward checklist to put your house in order.

1. Set Expectations In Contracts And Policies

Your employment contracts should outline leave entitlements at a high level and point to your policies for process detail. A well-drafted Employment Contract, combined with a clear leave policy, removes ambiguity and ensures consistency across managers and teams.

2. Keep Accurate Records

Track accrual, balances and usage in your payroll or HR system. Update balances every pay run so employees can see their current entitlements (transparency helps reduce misunderstandings).

3. Communicate Early And Often

Remind your team that personal/carer’s leave is there to use when they need it. Encourage early notice where possible, and maintain a culture where people feel comfortable staying home when they’re unwell.

4. Be Consistent With Evidence

Apply your policy consistently. If you require medical certificates for one-day absences in one team, do the same across the business unless there’s a genuine reason to differ.

5. Focus On Safety And Capacity

Where illness or injury affects capacity, prioritise safety. Consider whether temporary adjustments are possible, and use medical clearance sensibly to make informed decisions.

6. Review Complex Cases Carefully

Extended or recurring absences may raise additional legal issues. Before you take any adverse action, make sure you’ve reviewed the facts, evidence and legal risks-this is one of those moments where getting advice can save a lot of pain later.

Key Takeaways

• Paid personal/carer’s leave accrues for full-time and part-time employees based on ordinary hours, and unused balances carry over from year to year.
• Casual employees do not accrue paid sick leave, but they can access unpaid carer’s leave and compassionate leave under the NES.
• Accrual continues during paid leave like annual leave, but generally not during unpaid leave (subject to any applicable award or agreement).
• Set clear rules for notice and evidence-medical certificates and reasonable evidence are appropriate where required by your policy.
• When paid leave runs out, consider unpaid options, annual leave, and reasonable adjustments, and manage complex cases carefully.
• Document your approach in robust contracts and policies so expectations are clear and consistently applied across your business.

If you’d like a consultation about setting up sick leave policies or managing personal/carer’s leave in your workplace, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.