Taking Sick Leave in Australia: Rights and Obligations

Sick leave is part of running any workplace. People get sick, family emergencies happen, and plans change. As an employer or manager, your job is to handle those absences fairly and legally so your team is supported and your business stays compliant.

In Australia, paid sick leave sits under the National Employment Standards (NES) in the Fair Work Act 2009. That means it’s a legal entitlement for eligible employees - not just a “nice to have.” In this guide, we’ll walk through who gets sick leave, how it accrues, what evidence you can ask for, and the practical steps you can take to manage sick leave smoothly.

We’ll also cover common scenarios (like running out of leave or being sick during annual leave), and share best-practice tips to reduce disputes before they start.

What Is Sick Leave (Personal/Carer’s Leave) Under the NES?

Under the National Employment Standards, “sick leave” is called paid personal/carer’s leave. It covers two situations:

• When an employee is unfit for work because of illness or injury; and
• When an employee needs to provide care or support to a member of their immediate family or household because of illness, injury, or an unexpected emergency (this is the “carer’s” part).

Who is entitled? Full-time and part-time employees are entitled to paid personal/carer’s leave. Casual employees don’t get paid sick leave under the NES, but they can take carer’s leave on an unpaid basis when a family or household member needs care due to illness, injury or an emergency.

Sick leave is separate from compassionate leave, annual leave and long service leave. It’s also different from WorkCover or workers’ compensation (which may apply if the illness or injury is work-related).

How Much Sick Leave Do Employees Get - And How Does It Accrue?

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 of work.

Accrual happens progressively during the year based on the employee’s ordinary hours. In practice, this means leave builds up as the employee works (rather than appearing in a lump sum on day one), and any unused balance carries over from year to year while they remain employed by you.

• 10 days is measured by the employee’s ordinary hours in a two‑week period (not a fixed number of hours for everyone). This ensures the entitlement scales fairly with different work patterns.
• Accrued sick leave does not transfer to a new employer if the employee changes jobs.
• Unused personal/carer’s leave generally is not paid out on termination, unless an applicable award, enterprise agreement or employment contract says otherwise.

If you’re working out entitlements for part‑time staff or employees with varying hours, it helps to set clear terms in a written Employment Contract so everyone understands how ordinary hours and leave accruals will work in your workplace.

Employer And Employee Responsibilities

Notice And Communication

Employees should let you know they’re taking sick leave as soon as practicable. That might be before their shift starts or as soon as they reasonably can (for example, if they were unexpectedly hospitalised overnight). They should also let you know how long they expect to be away if that information is available.

Encourage simple, consistent notification steps (e.g. phone the manager and follow up by email). If someone is unwell but unsure whether they need a doctor’s certificate, it can be helpful to share your approach to sick days without a certificate so expectations are clear.

Evidence You Can Request

You can ask for “reasonable evidence” the employee was unfit for work or needed to provide care. Reasonable evidence most commonly means a medical certificate or a statutory declaration. You can generally request evidence even for a single day’s absence if your policy says so, or if it’s reasonable in the circumstances.

If an employee can’t see a GP (for example, short-notice illness over a weekend), some workplaces accept a statutory declaration where appropriate. The key is to apply your policy consistently and in line with the NES and any applicable award or enterprise agreement.

Record-Keeping (And Payslips)

You must keep accurate leave records for each employee in accordance with the Fair Work requirements. While it’s common to include leave balances on payslips to improve transparency, the law does not require you to show leave balances on payslips. What’s essential is that your records are correct, complete and available if requested by a regulator.

No Adverse Action

It’s unlawful to dismiss or disadvantage someone because they’ve taken (or proposed to take) a lawful period of personal/carer’s leave. Managing performance issues and misconduct is still possible - but you should separate those processes from any legitimate leave taken and seek advice before taking action if the situation is complex.

Evidence, Medical Certificates And Privacy

Many disputes can be avoided by setting expectations up front. Consider a short, plain‑English sick leave policy that explains:

• Who to notify and by when;
• What kinds of evidence are acceptable and when you’ll ask for it;
• How partial days, shifts and recurring absences are handled; and
• When you may request a fitness for duty or independent assessment (if at all).

If an absence is long or frequent, you may reasonably ask for a medical clearance to return to work to confirm the employee is fit to perform the inherent requirements of their role. This should be proportionate and based on genuine health and safety or operational needs.

Health information is sensitive. Treat medical certificates, clearances and related records confidentially and limit access to those who need to know. Many employers formalise this approach through an internal policy or an Employee Privacy Handbook to set consistent standards around collecting, storing and using employee health information.

Common Sick Leave Questions (Answered)

Can Sick Leave Be Used To Care For Family?

Yes. The NES allows employees to use paid personal/carer’s leave to care for an immediate family or household member who is ill, injured or facing an unexpected emergency. Casual employees can take carer’s leave on an unpaid basis.

What If An Employee Runs Out Of Sick Leave?

If paid personal/carer’s leave is exhausted, you can discuss options such as unpaid sick leave, or agreeing to use annual leave. For carers, employees can access up to two days of unpaid carer’s leave per occasion when needed. For longer absences, you may also be dealing with fitness for work, reasonable adjustments, or potential incapacity issues - at this point, it’s sensible to seek advice.

If you’re navigating a stretch of illness, this practical guide on managing entitlements when entitlements run out is a helpful starting point, alongside your own policies and any applicable award or enterprise agreement.

Do Employees Get Paid Out For Unused Sick Leave On Termination?

Generally, no. Unused paid personal/carer’s leave is not paid out when employment ends unless an applicable industrial instrument or contract specifically says otherwise.

What Happens If Someone Gets Sick While On Annual Leave?

If an employee becomes ill or injured while on annual leave and provides reasonable evidence, they can usually access personal/carer’s leave instead of annual leave for the relevant period under the Fair Work Act. That way, their annual leave can be re‑credited.

Long service leave is different. It’s governed by state and territory legislation and, in some cases, awards or enterprise agreements. Whether illness during long service leave allows re‑crediting is not uniform across jurisdictions. Always check the rules that apply in your state or territory before making a call.

Is Sick Leave The Same For Casuals?

Casual employees do not accrue paid personal/carer’s leave under the NES. However, they may take two days of unpaid carer’s leave per occasion when a member of their immediate family or household needs care due to illness, injury, or an unexpected emergency. You can set reasonable evidence requirements for casual absences too; if you often grapple with supporting evidence for casual absences, this overview on medical certificates for casual employees is useful.

Can I Ask For Evidence For A One‑Day Absence?

Yes, if it’s reasonable and consistent with your policy or the circumstances. It’s common to require evidence for any absence, including single days, especially if the absence falls next to a weekend, public holiday or pre‑approved leave. Just make sure you apply the rule consistently.

What If An Employee Needs Time Off But Doesn’t Have A Certificate?

Not every illness comes with a same‑day GP appointment. Your policy might accept a statutory declaration or other reasonable forms of evidence where appropriate, particularly for short illnesses. If you’re setting expectations around proof, it helps to address edge cases like sick days without a certificate so everyone’s on the same page.

Can Employees Take Unpaid Leave Instead?

Yes - employees may request unpaid leave, and you can agree to it. Unpaid leave can be a practical option if paid personal/carer’s leave is exhausted or not available. The key is to document the arrangement and keep records. For a broader look at this entitlement, see this guide to unpaid leave.

Best Practice For Small Businesses

1) Set Clear Rules (And Keep Them Consistent)

A short internal policy clears up confusion about who to call, what evidence is needed, and how extended absences are handled. Keep it practical and apply it consistently. Many businesses include sick leave standards in a staff handbook or as part of their Workplace Policy suite.

2) Put It In Writing

Clear terms in your Employment Contract make a big difference - especially for part‑time arrangements, ordinary hours, shift patterns and evidence requirements. If an award or enterprise agreement applies, check that your contract and policies align.

3) Keep Great Records (And Protect Privacy)

Maintain accurate leave records and store medical information securely with limited access. This builds trust with your team and keeps you compliant with record‑keeping obligations.

4) Triage Long Or Complex Absences Early

Extended illness can raise questions about reasonable adjustments, fitness for work, or safe return-to-work plans. Engaging early - for example, by requesting a proportionate medical clearance or discussing adjustments - helps you balance care for your employee with operational needs.

5) Be Prepared For “What Ifs”

Think ahead to recurring absences, intermittent symptoms (e.g. chronic conditions) and overlapping entitlements. For example, how will you handle genuinely unforeseeable late-notice absences versus patterns that trigger concern? An early review of your documentation and approach can prevent issues later.

Sick Leave Compliance Checklist

• Confirm who is eligible in your workforce (full-time, part-time, casual).
• Ensure accrual is set up correctly based on ordinary hours and that balances carry over.
• Adopt a reasonable, written evidence standard (medical certificate or statutory declaration) and apply it consistently.
• Make sure employees know how and when to notify you (particularly for shift work).
• Keep accurate leave records; remember you don’t have to list leave balances on payslips.
• Handle medical information confidentially, supported by an Employee Privacy Handbook or similar policy.
• Have a plan for exhausted entitlements, including options for annual leave or unpaid leave.
• Know when it’s reasonable to ask for a medical clearance to return to work, and handle longer absences with care.

Key Takeaways

• Paid personal/carer’s leave under the NES is a legal entitlement for full‑time and part‑time employees; casuals can access carer’s leave on an unpaid basis.
• Leave accrues progressively based on ordinary hours, carries over from year to year, and usually isn’t paid out on termination unless an instrument or contract says otherwise.
• You can request reasonable evidence (like a medical certificate or statutory declaration) even for a single day, provided it’s reasonable and consistently applied.
• If an employee becomes ill during annual leave and provides evidence, they can generally substitute personal/carer’s leave; rules for long service leave depend on state or territory law.
• Keep accurate records and protect medical information; leave balances don’t have to appear on payslips, but your records must be correct and accessible.
• Clear contracts and policies reduce disputes - set expectations up front and be ready to manage longer absences with a proportionate, safety‑first approach.

If you’d like tailored advice on handling sick leave, setting evidence standards or updating your workplace documents, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.