Leave Management & Entitlements

Sick leave

What Is Sick Leave?

Sick leave, also referred to as personal leave, is a type of paid leave that allows employees to take time off from work when they are unwell or injured. In Australia, sick leave entitlements are governed by the National Employment Standards (NES) under the Fair Work Act 2009. Full-time and part-time employees are entitled to paid sick leave, while casual employees are generally not, though they may be covered by unpaid carer’s leave.

Sick leave is critical for maintaining workplace health, preventing the spread of illness, and supporting the overall wellbeing of employees.

Fair Work – Paid Sick and Carer’s Leave

Sick Leave Entitlements in Australia

Under the NES, the standard sick leave entitlement is:

  • 10 days of paid personal/carer’s leave per year for full-time employees.
  • Pro-rata leave for part-time employees, based on their ordinary hours.
  • Sick leave accumulates progressively throughout the year and rolls over if unused.
  • Accumulated sick leave is not paid out when employment ends (unless specified in a contract or agreement).

This entitlement is combined with carer’s leave, which allows an employee to take time off to care for a sick or injured immediate family member or household member.

Who Can Take Sick Leave?

Employees can take sick leave if they:

  • Are too ill or injured to attend work.
  • Are recovering from surgery, illness, or a medical procedure.
  • Need time off due to a workplace injury (though separate workers’ compensation rules may apply).
  • Have a mental health issue that temporarily affects their ability to work.

Employees must notify their employer as soon as possible, and employers can request reasonable evidence, such as a medical certificate or statutory declaration.

Do Casual Employees Get Sick Leave?

Casual workers do not receive paid sick leave. However, they are entitled to 2 days of unpaid carer’s leave per occasion, and may access other forms of unpaid leave under certain conditions.

Managing Sick Leave in the Workplace

For employers, managing sick leave effectively ensures compliance and promotes a healthy, productive work environment. Key practices include:

  • Accurate recordkeeping of sick leave balances and usage.
  • Having a clear leave policy that outlines how to apply for sick leave and what evidence is required.
  • Encouraging early communication from staff when they are unwell.
  • Ensuring leave requests are handled fairly and consistently.

How Sick Leave Accrual Works

Sick leave accrues:

  • Based on ordinary hours worked (including while on paid leave).
  • In hours, not days, to accommodate flexible and part-time arrangements.
  • Continues to accrue during periods of paid leave (such as annual leave or other sick leave).
  • Does not accrue during unpaid leave (except for unpaid parental leave under certain conditions).

For example, a full-time employee working 38 hours per week would accrue approximately 1.46 hours of personal/carer’s leave per week.

How Microkeeper Supports Sick Leave Management

Microkeeper’s HRIS software makes managing sick leave simple and compliant by:

  • Automating leave accruals in line with awards and the NES.
  • Letting employees submit leave requests digitally via their Employee Console.
  • Giving managers visibility over leave balances and history.
  • Syncing leave data with payroll and timesheets, ensuring accurate wage processing.
  • Helping businesses generate audit-ready reports for compliance.

Discover Microkeeper's Leave Management Features

Sick Leave vs. Other Leave Types

Leave Type Paid? Purpose
Sick Leave Yes For illness or injury
Carer’s Leave Yes To care for a sick family/household member
Unpaid Carer’s Leave No For casuals or when paid leave is exhausted
Annual Leave Yes For holidays and rest
Compassionate Leave Yes (2 days) For a death or life-threatening illness in the family

Best Practices for Employers

  • Set expectations about when and how to provide medical certificates.
  • Create a culture that supports wellbeing, encouraging employees to rest when unwell.
  • Monitor excessive or frequent sick leave and address it with empathy and fairness.
  • Include clear policies in your employee handbook or employment contract.
  • Use technology like Microkeeper to manage leave workflows and keep accurate records.

Final Thoughts

Sick leave plays a vital role in supporting employee health and workplace productivity. Employers that respect and properly manage sick leave foster a culture of care, trust, and long-term retention. Leveraging digital HR tools can streamline processes, ensure compliance, and give teams the flexibility they need when life gets in the way.

Disclaimer: This content is for general informational purposes only and does not constitute legal or HR advice. For detailed guidance, please consult the Fair Work Ombudsman or a legal professional.