Sick Pay Leave In Australia: A Comprehensive Guide To Legal Obligations And Best Practices

Managing sick leave well is one of those quiet essentials that keeps your team healthy and your business running smoothly.

Get it right, and you’ll support your people, reduce risk and stay compliant. Get it wrong, and you could face payroll issues, disputes and Fair Work headaches.

In this guide, we break down what paid sick leave actually is under Australian law, who’s entitled to it, how it accrues and gets paid, and the practical steps to manage it day to day. We’ll also cover common scenarios like evidence requirements, long-term illness and what happens to unused entitlements.

What Is Sick Pay Leave Under Australian Law?

Under the National Employment Standards (NES), paid “personal/carer’s leave” (often called paid sick leave) is a minimum entitlement for full-time and part-time employees.

It’s designed to:

• Let an employee take time off when they’re unwell or injured.
• Care for an immediate family or household member who is sick or has an unexpected emergency (carer’s leave).
• Deal with personal emergencies related to illness or injury.

Key points in plain English:

• Personal/carer’s leave is paid for full-time and part-time employees and accrues over time.
• It accumulates year to year (unused balances roll over).
• Casual employees don’t get paid sick leave, but they do have access to unpaid carer’s leave and other forms of leave.

Who Is Entitled And How Does Sick Leave Accrue?

Full-Time And Part-Time Employees

• Full-time employees are entitled to 10 days of paid personal/carer’s leave per year.
• Part-time employees accrue on a pro rata basis according to their ordinary hours of work.
• Accrual happens progressively through the year and is based on ordinary hours (not overtime).
• Balances carry over from year to year - there’s no “use it or lose it” rule under the NES.

Casual Employees

• Casuals are not entitled to paid sick leave under the NES.
• Casuals can take unpaid carer’s leave (typically 2 days per occasion) if a member of their immediate family or household is ill or injured or faces an unexpected emergency.

Carer’s Leave vs Sick Leave

It’s the same bucket of entitlement (personal/carer’s leave). Employees can use paid personal/carer’s leave when they are sick or injured, or to care for a sick household/immediate family member or due to a family emergency.

Related Leave You Should Know About

• Compassionate leave (usually 2 days per occasion) is separate from sick leave.
• Family and Domestic Violence Leave is a separate entitlement (10 days paid for most employees under the Fair Work Act) and cannot be deducted from personal/carer’s leave.

Do Employees Get Paid For Unused Sick Leave When They Leave?

No - under the NES, employees are generally not paid out unused personal/carer’s leave on termination. For more detail, see what happens to unused sick leave.

Evidence, Notice And Fit For Work: What Can You Ask For?

Notice

Employees need to let you know as soon as practicable that they’ll be away and for how long they expect to be off work. This can be a quick call, email or message - your policy can set out the preferred method.

Evidence Requirements

You can ask for evidence that would satisfy a reasonable person that the employee was entitled to the leave. This often means a medical certificate or a statutory declaration, depending on your policy and the circumstances.

• Learn when you can request medical certificates from employees.
• Where a certificate isn’t available, a statutory declaration can be acceptable evidence if your policy allows it.

How Much Detail Can You Ask For?

Focus on whether the employee is unfit for work and the expected duration - not the diagnosis or private medical details. Respecting privacy builds trust and reduces risk of discrimination claims.

Fit For Work Clearances

If an employee has been off for a period or has restrictions, you can reasonably ask for a medical clearance or further information about capacity and adjustments. Keep requests proportionate to the role and safety risks.

Paying Sick Leave And Payroll Compliance

How Is Sick Leave Paid?

• Paid at the employee’s base rate for their ordinary hours they would have worked (excludes overtime and penalty loadings unless otherwise provided by an award or agreement).
• Applies to rostered shifts or ordinary hours - if they weren’t scheduled to work, there’s no deduction from their balance.

Is Superannuation Payable On Sick Leave?

Generally yes - super is payable on ordinary time earnings, which typically include paid personal/carer’s leave. For context on OTE, see ordinary time earnings.

Record-Keeping

• Keep accurate records of accruals, balances and usage.
• Document evidence received (e.g. certificates) and the dates leave was taken.
• If your payroll system tracks in hours (recommended), accrual and deductions remain fair across changing rosters.

Interaction With Other Leave Types

• Public Holidays: If a public holiday falls during a period of paid sick leave, it’s generally treated as a public holiday (not deducted from sick leave).
• Annual Leave: If someone is sick during annual leave and provides evidence, they can usually convert those days to paid sick leave and recredit the annual leave.

Managing Sick Leave At Work: Policies, Contracts And Practical Tips

Clear documents and consistent processes make sick leave management smoother for everyone.

Set Expectations In Writing

• Include entitlements and processes in the Employment Contract.
• Support those terms with a simple, plain-English leave policy inside your workplace policy suite (or staff handbook).

Make sure your policy covers notice requirements, when evidence is required, how to submit certificates, how accrual is shown on payslips, confidentiality and who to contact if the absence becomes long term.

Be Consistent And Reasonable

• Apply the same rules to everyone to avoid complaints about unfair treatment.
• Ask for medical evidence consistently - for example, after two or more consecutive days, or where patterns emerge. Ensure this threshold is set out in your policy.

Safety And Reasonable Adjustments

Where health issues impact work capacity, consider reasonable adjustments, alternative duties or staged returns to work. This helps meet your obligations under discrimination and safety laws and supports staff wellbeing.

Sick Leave During Notice Periods

Employees can take sick leave during their notice period if they’re unfit for work and have balances available. The notice period usually continues to run, but check awards and agreements. For specifics, see sick leave during notice.

When Entitlements Run Out

If paid personal/carer’s leave is exhausted, employees might access unpaid personal leave or other options (e.g. annual leave with your agreement). Long-term situations require a careful, humane and legally sound approach - keep an open dialogue and document each step.

Edge Cases And Common Scenarios

Can You Ask For A Medical Certificate For One Day Off?

Yes, provided your request is reasonable and consistent with your policy and any relevant award or enterprise agreement. Setting a clear threshold (for example, at least one day with patterns or specific days such as before/after public holidays) reduces disputes. See guidance on medical certificates.

Is A Statutory Declaration Enough Evidence?

Often, yes - especially where a medical certificate is impractical to obtain. Your policy should outline when a statutory declaration is acceptable.

What If Someone Calls In Sick Repeatedly?

Patterns of absence warrant a supportive conversation. Revisit the policy, ask for appropriate evidence and explore underlying causes. If concerns persist, manage through your performance and conduct processes, not ad hoc rules.

Long-Term Illness Or Injury

For extended absences, keep in touch, seek capacity information, consider reasonable adjustments and assess operational needs. Only consider ending employment after a careful review of obligations under the Fair Work Act, any applicable discrimination laws and workplace health and safety requirements - and seek legal advice before making decisions.

Does Sick Leave Accrue While On Leave?

Paid personal/carer’s leave generally continues to accrue when an employee is on paid leave (like annual leave), but not while they’re on unpaid leave (unless an award or agreement says otherwise). Your payroll system should handle this correctly, but it’s worth checking settings.

What About Unused Balances At Year End And On Termination?

Unused balances carry forward each year. Generally, there’s no cash-out under the NES and no payout on termination - see more on unused sick leave.

Other Practical Questions We See

• Evidence After A Single Day: Reasonable if consistent with your policy and the circumstances.
• Sick Leave And Rosters: Deduct only the ordinary hours the employee would have worked.
• Confidentiality: Keep medical information secure and only share on a need-to-know basis.
• During Notice: Paid sick leave can be taken; the notice period usually continues to run - see sick leave during notice.

Putting It All Together: A Simple Sick Leave Process

1) Set Up Your Documents

• Embed entitlements and expectations in your Employment Contract.
• Publish a clear leave policy inside your workplace policy suite.

2) Configure Payroll Correctly

• Accrual in hours based on ordinary time.
• Superannuation paid correctly on leave that counts as ordinary time earnings.
• Payslips show balances (or at least accrual/usage) clearly.

3) Train Managers

• How to receive notice and what to ask.
• When to request evidence, and how to keep data confidential.
• How to escalate long-term illness cases compassionately and lawfully.

4) Apply The Policy Consistently

• Keep simple checklists for proof, pay rates and payroll coding.
• Document decisions, especially for long or complex absences.

5) Review And Improve

• Spot patterns (e.g. frequent Mondays) and address softly but clearly.
• Update your policy if rules prove unclear in practice.

Key Takeaways

• Paid personal/carer’s leave (sick leave) is a core NES entitlement for full-time and part-time staff and accrues based on ordinary hours, rolling over year to year.
• Casuals don’t get paid sick leave but can access unpaid carer’s leave and other separate entitlements like family and domestic violence leave.
• You can require reasonable evidence - usually a medical certificate or a statutory declaration - and employees must notify you as soon as practicable.
• Pay sick leave at base rate for ordinary hours and pay super where required, noting it generally counts toward ordinary time earnings.
• Clear documents and processes are essential: set expectations in the Employment Contract and your workplace policy, and train managers to apply them consistently.
• Handle complex situations (long-term illness, capacity, or leave during notice periods) carefully and document your approach; seek tailored advice before making major decisions.

If you’d like a consultation on managing sick pay leave in your workplace, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.