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Running a business is always a balancing act, especially when it comes to looking after your team. Australian employment law gives employees certain rights to take time off when they’re unwell or need to care for a family member. But navigating the ins and outs of sick leave and carer’s leave can feel overwhelming – especially with recent changes and growing awareness around workplace wellbeing.
If you’re an employer, understanding your obligations (and your team’s entitlements) isn’t just about compliance – it’s about building a fair, supportive workplace that helps your business thrive. Confused about whether sick and carer’s leave are the same thing, or what your record-keeping responsibilities are? You’re not alone, but with the right knowledge and preparation, you can avoid legal pitfalls and foster a positive culture.
In this guide, we’ll walk you through the basics of sick leave and carer’s leave in Australia, answer the most common questions, and outline the must-haves for legal compliance. Let’s break it all down so you can support your staff with confidence.
What Is Sick Leave and Carer’s Leave?
Sick leave and carer’s leave are both types of personal leave set out in the National Employment Standards (NES), which apply to most employees in Australia.
- Sick Leave: Sometimes referred to as personal leave, this is the time an employee can take off work when they are unwell or injured and unable to do their job.
- Carer’s Leave: This leave allows an employee to take time off to care for an immediate family or household member who is sick, injured, or experiencing an unexpected emergency.
Under the NES, permanent employees are entitled to both sick and carer’s leave, and it’s important to know how these entitlements work together and separately. Casual employees, however, do not receive paid personal/carer’s leave but do have access to unpaid carer’s leave.
How Much Sick Leave and Carer’s Leave Do Employees Get?
Full-time employees are entitled to 10 days of paid personal/carer’s leave per year. This entitlement is pro-rated for part-time employees. Importantly, this leave accrues over time and is not split into separate ‘sick leave’ and ‘carer’s leave’ balances – it’s one combined entitlement, sometimes called “sick/carers leave”.
- Personal/Carer’s Leave (Sick and Carer’s Leave Combined): 10 days per year for full-time staff, pro rata for part-timers.
- Unpaid Carer’s Leave: Up to 2 days per occasion is available to all employees (including casuals) if paid leave has been exhausted or is not available.
This leave continues to accrue when an employee is on paid leave (such as annual leave) but not when they are on unpaid leave.
Is Carer’s Leave the Same as Sick Leave?
Many employers ask, “Is carer’s leave part of sick leave?” or “Does carer’s leave come out of sick leave?” The short answer is: yes, in most cases.
Both sick leave and carer’s leave are part of the same personal leave balance. When an employee takes time off as sick leave or to care for a family member, it is deducted from a single combined balance. Here’s what you need to remember:
- Same Balance: Whether the leave is for the employee’s own illness (sick leave) or to care for someone else (carer’s leave), it comes out of the same “personal/carer’s leave” bucket.
- Different Reasons, Same Process: The distinction is around the reason for the absence, not the type of leave – record keeping and pay are handled the same way for both.
So, if you’re recording leave, you can label it as “personal/carer’s leave” – no need to separate sick from carer’s days (though you can for your own reporting and internal records if you want to understand trends in your business).
What Does the Law Say About Sick and Carer’s Leave?
The Fair Work Act 2009 sets out the rules for sick, carer’s, and other personal leave through the NES. Some modern awards and enterprise agreements may have extra rules, but can’t take away core entitlements.
- Paid Personal/Carer’s Leave: Employees must be paid their base rate for ordinary hours while on paid sick/carer’s leave.
- Unpaid Carer’s Leave: If all paid personal/carer’s leave is used, or if the employee is a casual and ineligible for paid leave, they are entitled to up to two days of unpaid carer’s leave per occasion.
- Notice and Evidence Requirements: Employees must let you know as soon as possible if they will be away from work (ideally before their shift starts). You can ask for evidence – this might be a medical certificate, a statutory declaration, or other reasonable proof. For details on what’s reasonable, see our article on sick certificate requirements.
- No Cash-Out: Employees can’t cash out personal/carer’s leave except under very specific circumstances in some awards and agreements, and only if they keep a minimum balance.
It’s important to understand that denying these entitlements, or failing to follow correct procedures, can result in penalties under the Fair Work Act and may damage your workplace’s reputation and morale.
How Do Sick and Carer’s Leave Accrue and Roll Over?
Personal/carer’s leave accrues progressively throughout the year based on hours worked. Any untaken balance carries forward into the next year – there’s no “use it or lose it” rule for personal/carer’s leave.
- Full-time employees accrue approximately 1.923 hours of personal/carer’s leave for each full week of work, totalling 76 hours (10 days) a year.
- Part-time employees accrue this leave on a pro-rata basis (e.g., if someone works half the hours of a full-timer, they get 5 days per year).
- Unused leave accumulates year on year. It is not paid out on termination unless required by a contract or enterprise agreement.
When Can Employees Take Sick or Carer’s Leave?
Employees may use personal/carer’s leave when:
- They are unfit for work due to illness or injury (sick leave).
- They are needed to care for or support an immediate family or household member who is ill, injured, or faces an unexpected emergency (carer’s leave).
Immediate family includes:
- A spouse or former spouse
- A de facto partner or former de facto partner
- A child, parent, grandparent, grandchild, or sibling
- A similar relative of the employee’s spouse or de facto partner
Does Carer’s Leave Count as Sick Leave?
This is a common question among both employers and employees. While the reasons for taking the leave differ, carer’s leave does come from (and count as) the employee’s sick leave entitlement. In fact, under the NES, they’re both part of ‘personal/carer’s leave’.
Do Sick and Carer’s Leave Accrue When an Employee Is Away?
Personal/carer’s leave continues to accrue when an employee is on paid leave such as annual leave or paid personal/carer’s leave. However, it does not accrue during periods of unpaid leave, including unpaid carer’s leave.
Do Employers Need to Pay Out Sick or Carer’s Leave on Termination?
No, under the NES, employers don’t have to pay out unused personal/carer’s leave (sick and carer’s leave) when an employee’s employment ends, unless an employment contract, award, or registered agreement says otherwise.
Practical Tips for Managing Sick and Carer’s Leave in Your Business
- Have Clear Policies: A written leave policy helps your team understand their rights and responsibilities. This can reduce confusion and ensure consistency. Your policy should cover how leave is requested, evidence requirements, how balances are tracked, and any extra provisions your business offers.
- Communicate Entitlements: Make sure your employees know what their entitlements are. Include sick/carer’s leave information in your staff handbook and employment agreements.
- Encourage Early Notification: Request that employees inform you of absences as soon as possible, ideally before their shift or rostered start time.
- Keep Accurate Records: The Fair Work Act requires employers to keep records of leave balances and requests. Accurate record-keeping is also crucial if you need to respond to disputes or Fair Work queries. See more on employment obligations.
- Ask for Evidence When Appropriate: You’re entitled to ask for proof if an employee takes personal/carer’s leave, especially if their absence is for two or more consecutive days, or immediately before or after a public holiday. If in doubt about what’s “reasonable,” seek legal advice.
- Support a Sick-Friendly Culture: Encourage staff to use their leave when unwell to stop the spread of illness and show you care about their health. This can actually reduce absenteeism over the long term.
What About Casual Employees and Carer’s Leave?
Casual employees don’t accrue paid personal/carer’s leave. However, they are still entitled to take unpaid carer’s leave. When a casual employee needs time off to care for an immediate family or household member (or in case of an unexpected emergency), they may take up to two days unpaid carer’s leave per occasion, as long as they give notice and, if asked, evidence.
Legal Requirements and Best Practices
Having the right policies and complying with the law isn’t just a box-ticking exercise. It helps protect your business from claims or penalties and builds trust with your staff – two things every growing business needs.
- Comply with the NES: Make sure your sick and carer’s leave offering at least meets the NES. Check that any awards or agreements do not reduce the NES minimums.
- Employment Contracts: Set clear leave entitlements in your employment contracts. You can offer more generous leave than required, but never less.
- Workplace Policies: Documentation and communication are key – make policies easily accessible and review them regularly.
- Fair Work Information Statement: Provide this to every new employee as required by law.
See our guide on employer Fair Work obligations. - Manage Medical Privacy: Be careful with employees’ medical certificates or other evidence – information needs to be handled in compliance with privacy law and only used for verifying the leave.
What Legal Documents Will I Need?
- Employment Agreement: Sets out all terms of employment, including leave entitlements. If you don’t have a robust contract, download our guide to employment contracts.
- Workplace Leave Policy: Provides clear, company-wide guidelines for applying for and managing leave.
- Staff Handbook: (or code of conduct) summarises all company policies and best practices, including sick and carer’s leave processes.
- Privacy Policy: Explains how you’ll collect, use, and store confidential information like medical certificates – important with increased privacy law scrutiny. See our article on Privacy Policies.
- Leave Request Form or System: While not always a formal document, an easy-to-use online or paper form ensures staff can request and you can track leave consistently.
Not every business will need every one of these in detail, but most will need at least a signed employment agreement, a clear policy, and a way to keep accurate records. If you’re unsure what’s right for your business, our legal experts can help.
Common Questions: Sick and Carer’s Leave for Employers
Does Carer’s Leave Come Out of Sick Leave?
Yes, carer’s leave and sick leave are part of the same entitlement – called personal/carer’s leave. Both are drawn from the same balance of 10 days per year for full-time employees, or pro-rata for part-timers.
Is Carer’s Leave and Sick Leave the Same?
They are not the same in purpose (one is for your own illness, one is for caring for others or dealing with emergencies), but they do come from the same leave pool in your records and payroll – “personal/carer’s leave” under the NES.
Can Employees Take Unpaid Carer’s Leave?
Yes, if an employee runs out of paid personal/carer’s leave (or if they’re a casual), they may take up to two days of unpaid carer’s leave per occasion.
What Proof Can Employers Ask For?
You have the right to ask for reasonable evidence (like a doctor’s certificate or statutory declaration) if an employee takes personal/carer’s leave – especially for longer absences or those before/after a public holiday. What’s “reasonable” will depend on the situation.
Does Personal/Carer’s Leave Roll Over Each Year?
Yes, any untaken paid leave balance rolls over year to year (there is no cap or expiry).
Key Takeaways: Sick Leave and Carer’s Leave for Employers
- Sick leave and carer’s leave are combined under the NES as “personal/carer’s leave.”
- Full-time employees accrue 10 days per year (pro-rata for part-time), used for their own illness or to care for an immediate family or household member.
- Casuals don’t receive paid leave but can access up to 2 days unpaid carer’s leave per eligible occasion.
- Employers must keep accurate leave records and can request reasonable evidence for leave taken.
- Clear contracts, policies, and communication help you stay compliant and support your team.
- Unpaid or paid personal/carer’s leave is not usually paid out on termination (unless your contract or award says otherwise).
- If you need help tailoring leave policies, contracts, or want advice on compliance, speak to a lawyer early to prevent issues down the track.
If you would like a consultation on managing sick leave and carer’s leave in your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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