If you employ staff, questions about sick leave in a year come up all the time - especially when you’re trying to keep a small business running smoothly while also supporting your team.
How much sick leave should an employee have available? When is it paid vs unpaid? Can you ask for a medical certificate? What if an employee is “always sick” on Mondays or right before public holidays?
In Australia, sick leave rules are mostly driven by the National Employment Standards (NES) under the Fair Work Act, plus any applicable modern award, enterprise agreement, and your employment contracts and policies. Getting this right isn’t just about avoiding disputes - it helps you stay compliant, plan staffing, and reduce payroll surprises.
Below, we’ll break down what small business employers need to know about paid and unpaid sick leave in Australia, including how sick leave accrues, evidence requirements, and how to handle tricky scenarios.
How Much Sick Leave In A Year Do Employees Get?
For most employees, “sick leave” is legally referred to as personal/carer’s leave. It covers time off when an employee is unfit for work due to personal illness or injury, and it can also cover time off to care for an immediate family or household member who is ill or injured (or has an unexpected emergency).
Full-Time Employees
Under the NES, full-time employees are generally entitled to:
- 10 days of paid personal/carer’s leave per year (based on their ordinary hours of work).
This is often what people mean when they ask about sick leave in a year. It’s not a “use it or lose it” entitlement each year - it accrues progressively and rolls over if unused.
Part-Time Employees
Part-time employees also get paid personal/carer’s leave, but it accrues pro rata based on their ordinary hours.
So if someone works fewer hours, they accrue leave more slowly - but they still have the same legal protection to take leave when they’re genuinely unfit for work.
Casual Employees
Casual employees generally do not receive paid sick leave under the NES.
However, casuals may still be entitled to certain unpaid leave entitlements in some circumstances, and they are still protected from adverse action for exercising workplace rights (for example, taking lawful unpaid leave where it applies).
It’s also worth checking whether the casual is genuinely casual - misclassification can create significant legal and backpay risks.
Does Sick Leave Reset Each Year?
No - not in the way many people assume.
The entitlement is often described as “10 days per year”, but it accrues progressively and rolls over. That means:
- an employee may have more than 10 days available if they haven’t used much leave over time, or
- they may have less than 10 days available if they’re new or have used leave recently.
From an employer perspective, the key operational issue isn’t just “how many days sick leave in a year” - it’s understanding that accrued balances can build up, and your payroll system needs to track this accurately.
Paid vs Unpaid Sick Leave Australia: What’s The Difference?
The biggest practical difference is whether the employee has a paid entitlement available (and whether their role is eligible for paid personal/carer’s leave).
When Sick Leave Is Paid
Sick leave is generally paid when:
- the employee is full-time or part-time, and
- they have enough accrued personal/carer’s leave available, and
- they provide notice (and evidence if requested and reasonable), and
- the absence is for a valid reason (illness/injury or caring responsibilities covered by the NES).
Paid personal/carer’s leave is paid at the employee’s base rate of pay for their ordinary hours they would have worked.
When Sick Leave Is Unpaid
Unpaid sick leave in Australia commonly comes up in these situations:
- The employee has no paid personal/carer’s leave balance left (they’ve used it up).
- The employee is a casual (generally not entitled to paid personal/carer’s leave).
- The absence doesn’t qualify as personal/carer’s leave (for example, it’s really a personal appointment that could reasonably be scheduled outside work, depending on the circumstances).
If a permanent employee is genuinely unfit for work but has exhausted their paid personal/carer’s leave, they may still need time away from work. In practice, an employer may agree to leave without pay (or another arrangement), but whether the absence is protected and how it should be recorded can depend on the reason for the absence, the employee’s circumstances, and any applicable award, enterprise agreement, contract terms and workplace policies.
Some employers choose to allow annual leave to be used instead, or they may allow an employee to take leave without pay - but you should be careful about applying a consistent approach and documenting agreements properly.
Can You Force An Employee To Use Annual Leave Instead Of Sick Leave?
Generally, if an employee is entitled to paid personal/carer’s leave and they meet the requirements, it should be treated as personal/carer’s leave (not annual leave). If they don’t have a personal leave balance available, you can discuss options such as annual leave or leave without pay (if the employee agrees) - but it’s important to check any relevant award, agreement or contract terms before directing an employee to use annual leave.
This is one reason it’s helpful to have clear rules in your Workplace Policy and consistent processes for leave requests and evidence.
Accrual, Record-Keeping, And Payroll: Getting The Numbers Right
For small businesses, leave issues often become stressful when records are unclear. Your obligations aren’t just about approving or rejecting leave - you also need proper documentation and compliant payroll processes.
How Sick Leave Accrues
Personal/carer’s leave accrues progressively during the year based on ordinary hours worked.
This means:
- an employee doesn’t receive a “fresh” 10 days upfront each year (unless your payroll system shows it that way as an administrative approach), and
- employees accrue leave as they work, and
- unused balances carry over year to year.
It’s also important to remember that sick leave is measured in hours (based on the employee’s ordinary hours). This matters if your employee works different shift lengths.
Do You Pay Superannuation On Sick Leave?
Paid personal/carer’s leave is generally treated as ordinary time earnings for superannuation purposes. That said, superannuation and payroll obligations can be nuanced depending on the payment type and the employee’s circumstances. Sprintlaw doesn’t provide tax or accounting advice, so it’s a good idea to confirm your specific obligations with your accountant, payroll provider, or the ATO guidance.
What About Unused Sick Leave When Someone Leaves?
Unlike annual leave, unused personal/carer’s leave is generally not paid out on termination. That’s a common point of confusion for both employers and employees.
If you want a deeper explanation of what happens at the end of employment, this overview on unused sick leave is a helpful reference point.
Make Sure Your Employment Contract Matches Your Processes
A lot of disputes come down to mismatched expectations. Your systems, rosters, and payroll processes should align with what your contracts say.
For example, your Employment Contract should clearly deal with leave entitlements, notice requirements, and evidence expectations (while still remaining consistent with the NES and any applicable award).
Notice And Evidence: When Can You Ask For A Medical Certificate?
One of the biggest practical issues for employers is what evidence you can request - and when.
Under the NES, an employee must provide:
- notice as soon as practicable (which can be after the leave has started), and
- evidence that would satisfy a reasonable person, if you request it.
Evidence might include a medical certificate, a statutory declaration, or other appropriate documentation depending on the circumstances.
Can Employees Take Sick Leave Without A Certificate?
Sometimes, yes - but it depends on your workplace rules, the award/contract, and what is “reasonable”. Many employers allow a small number of single-day absences without a certificate, while others require evidence for any personal leave taken.
Where businesses often get stuck is inconsistency: approving evidence-free sick leave sometimes, then cracking down later when attendance becomes a pattern.
This is why having a clear approach matters. If you’re dealing with this issue, this guide on sick leave without a certificate explains the common compliance considerations.
Can You Request Medical Clearance Before Returning To Work?
In some workplaces (especially where safety is a real risk), it can be appropriate to ask for a “fit for work” clearance before the employee returns.
This needs to be handled carefully. The request should be lawful, reasonable, and connected to the requirements of the job - not a blanket rule that feels punitive.
If you’re unsure where the line is, this article on medical clearance to return to work is a useful starting point.
Medical information is sensitive. Keep certificates and health information confidential, limit who can access it internally, and avoid collecting “extra” information you don’t need.
As a practical rule: you generally need enough information to confirm the employee is unfit for work (or needs to care for someone), but you usually don’t need detailed diagnoses.
Common Pain Points For Small Businesses (And How To Handle Them)
Sick leave is a normal part of employing people - but certain patterns and scenarios create real stress for small business owners.
1. Patterns Of Absences And Suspected Misuse
If an employee’s absences follow a pattern (for example, always before/after weekends, busy periods, or after a roster change), it’s understandable to feel concerned.
Still, it’s important to manage this carefully. A good approach is to:
- check your records first (dates, times, balances, prior approvals)
- apply your policy consistently
- hold a neutral, factual conversation with the employee
- remind them of notice and evidence requirements going forward
- document outcomes and expectations
Where things get legally risky is if you jump straight to disciplinary action without evidence, or you treat the employee differently because you suspect something (but can’t substantiate it).
2. Sick Leave Requests For Planned Procedures (Including Elective Surgery)
Not all sick leave is sudden. Employees may notify you that they have a procedure coming up that will require time off, and they may use personal leave if they are genuinely unfit for work due to illness or injury (including recovery).
As an employer, your focus should be on:
- reasonable notice and planning for coverage
- evidence requirements
- any return-to-work requirements (especially for physical roles)
For more detail on managing this appropriately, this guide on sick leave for elective surgery covers the practical issues employers run into.
3. Managing Sick Leave During A Notice Period
If an employee resigns (or you give notice of termination) and then takes sick leave during the notice period, it can raise questions about how you calculate final pay, whether notice is extended, and how you confirm evidence.
The rules can depend on what’s happening (resignation vs employer termination), what the contract says, and the applicable award terms. In many cases, if the employee is entitled to paid personal leave and provides appropriate notice/evidence, it remains paid personal leave - even if it’s during a notice period.
If you’re considering paying out notice instead, make sure you understand your obligations around payment in lieu of notice and whether it’s appropriate in the circumstances.
4. Long-Term Absence, Capacity Concerns, And “What Now?”
When sick leave becomes long-term (or recurring), your main risk areas often include:
- workplace health and safety duties
- discrimination risk (particularly if there is a disability)
- privacy and handling medical information
- whether the employee can still perform the inherent requirements of the role
Sometimes, employers feel they have no options - but there are usually steps you can take before things reach breaking point, including requesting appropriate medical information, exploring reasonable adjustments, and considering whether the role can be performed safely.
If employment is ending due to incapacity, you should be especially careful. This is one of those areas where a quick call for tailored advice can save a lot of risk. This overview on termination on medical grounds explains why the process matters.
Key Takeaways
- Sick leave in a year is usually personal/carer’s leave under the NES - commonly 10 days per year for full-time employees, accruing progressively and rolling over if unused.
- Part-time employees accrue personal/carer’s leave pro rata, while casual employees generally don’t receive paid sick leave.
- Unpaid sick leave in Australia often comes up when an employee has exhausted their paid balance, or where a casual employee is absent - but your approach should still be consistent and compliant (and may depend on any applicable award, agreement, contract and the circumstances).
- You can request evidence (like a medical certificate) where it would satisfy a reasonable person, and it’s best to have clear rules in your contracts and policies.
- Be careful with tricky situations like pattern absences, sick leave during notice periods, and long-term illness - these can raise compliance issues around Fair Work, privacy, and discrimination.
- Strong documentation (employment contracts, policies, records) helps you manage leave fairly and reduce disputes.
If you’d like help setting up compliant leave clauses, workplace policies, or advice on a difficult sick leave situation, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
