Excessive Sick Leave Warning Letter: Employer Guide (Australia)

As a small business owner, you’re often balancing empathy with practicality. When an employee is genuinely unwell, you want them to recover. But when sick leave becomes frequent, unpredictable, or doesn’t line up with business needs, it can create real operational stress - rosters fall apart, service levels drop, and other staff can feel the pressure.

This is where a warning letter about excessive sick leave can help. Used properly, it’s not about “punishing” someone for being sick. It’s about documenting concerns, setting expectations, and giving the employee a fair opportunity to respond and improve - while protecting your business if the issue escalates.

In this practical guide, we’ll walk you through when a warning letter is appropriate, what legal risks to watch for in Australia, and how to structure an excessive sick leave warning letter that is clear, fair, and defensible.

What Counts As “Excessive” Sick Leave In Australia?

There’s no single legal definition of “excessive” sick leave under the Fair Work Act. Instead, what’s “excessive” depends on context - including the employee’s role, the size of your business, the pattern of absences, and whether the absences are supported by evidence.

As an employer, you’re usually looking for things like:

• Frequency: repeated sick leave over a short period (even if each absence is only 1 day).
• Patterns: regular Monday/Friday absences, absences around public holidays, or absences that align with rostered unpopular shifts.
• Impact: the absences are disrupting operations, creating significant cost, or affecting other staff.
• Evidence issues: the employee regularly provides no medical evidence where it’s reasonable to request it (depending on your workplace policies and any Award/Agreement requirements).

Importantly, employees can take paid personal/carer’s leave if they are unfit for work due to illness or injury (or need to care for an immediate family/household member). The key issue is usually not “are they entitled to sick leave?”, but rather whether the absences are being managed fairly, documented properly, and whether you have enough information to make decisions about performance and capacity.

If you’re unsure about evidence requirements, it’s worth reviewing your internal policies and how they interact with the Fair Work framework. (For example, many employers ask what happens when staff want sick days without a certificate - the answer often depends on the circumstances and what’s “reasonable”.)

When Should You Use An Excessive Sick Leave Warning Letter (And When Shouldn’t You)?

An excessive sick leave warning letter is usually appropriate when:

• you’ve noticed a concerning pattern or level of absences;
• you’ve already had an initial (informal) conversation with the employee; and
• the issue continues, or the employee hasn’t engaged constructively with requests for evidence or workplace discussions.

In many workplaces, a warning letter comes after you’ve taken some “low-risk” steps first, such as:

• checking whether there’s an underlying health issue you should be aware of (without demanding unnecessary details);
• confirming sick leave reporting requirements (how and when they must notify you);
• reminding them about evidence requirements; and
• offering a meeting to discuss support, adjustments, or workload concerns.

Situations Where You Should Slow Down And Get Advice

Be cautious about issuing a warning letter if:

• the employee may have a disability (including mental health conditions) and you haven’t considered reasonable adjustments;
• the employee has recently made a complaint (for example about bullying, underpayment, safety, or discrimination) and the timing could raise “adverse action” risk;
• the absences relate to a workers’ compensation issue or workplace injury;
• you’re considering termination and want to ensure you’re following a defensible process.

This isn’t to say you can never manage attendance in these cases - you often can - but you’ll want to tread carefully and make sure your approach is based on legitimate operational needs, not assumptions about someone’s health.

The Legal Risks Employers Need To Manage (Before You Send The Letter)

Before you send an excessive sick leave warning letter, it helps to understand the key legal pressure points. Most disputes in this space don’t happen because an employer raised an attendance issue - they happen because the process was inconsistent, too harsh, or ignored legal protections.

1. Unfair Dismissal Risk

If the situation escalates to termination, an employee may claim unfair dismissal (depending on eligibility). A fair process usually involves:

• clear communication about the issue;
• an opportunity for the employee to respond;
• genuine consideration of their explanation;
• warnings where appropriate; and
• a proportionate outcome.

A warning letter can be one part of showing you handled the issue procedurally fairly - but only if the letter is backed by real evidence and a genuine process (not just a “paper trail” created after you’ve already decided the outcome).

2. General Protections (Adverse Action) Risk

Employees have protections around workplace rights, temporary absence due to illness/injury, and discriminatory treatment. If you issue a warning letter in a way that appears to penalise an employee for legitimately using personal leave, you can create legal risk.

The practical approach is to focus your letter on:

• attendance expectations and operational impact;
• the need for proper notification and evidence; and
• the fact you are seeking to understand whether there’s an underlying issue affecting capacity.

3. Privacy And Medical Information

Employers often want clarity: “What’s actually going on?” But you generally shouldn’t demand a diagnosis or overly detailed medical information. Instead, you can request evidence that the employee was unfit for work, and where appropriate you can ask for information about any work restrictions and an estimated timeframe for capacity (for example, via a treating practitioner’s certificate). Any request should be reasonable in the circumstances and connected to the inherent requirements of the role.

In some situations, it may be reasonable to request a fitness-for-work certificate or medical clearance - for example, where the role is safety-sensitive, there are genuine safety concerns, or you need clarity about whether the employee can perform the inherent requirements of their job (with or without reasonable adjustments). However, this isn’t a “blanket” right and should be handled carefully, including by checking any applicable Award, agreement and policies. (This comes up often when employers ask when can employers request medical clearance to return to work.)

4. Award / Agreement Requirements

Minimum notice for absences, evidence requirements, and consultation obligations can vary depending on any applicable Modern Award or enterprise agreement. Before you send a warning letter, check that your expectations align with those instruments and your internal policies.

Step-By-Step: How To Handle Excessive Sick Leave Before Issuing A Warning Letter

If you want your excessive sick leave warning letter to be effective (and not inflame the situation), the steps you take before sending it matter just as much as the wording inside it.

Step 1: Gather Your Records (And Keep It Objective)

Start with data, not impressions. Pull together:

• dates and durations of sick leave taken;
• whether evidence was provided;
• how the employee notified you (and whether it met policy requirements);
• operational impacts (for example, shifts left uncovered, overtime paid, client work delayed).

Be careful about commentary like “they’re always sick when it’s busy” unless you can point to a clear pattern. Stick to facts.

Step 2: Check Your Policy And Apply It Consistently

If you have a leave policy, attendance policy, or sick leave reporting rules, make sure you’re following them consistently across the team. Inconsistent treatment is a common trigger for disputes.

If you don’t have clear policies, it’s often worth formalising expectations - especially around notification timeframes and evidence - so you’re not making it up as you go.

Step 3: Have A Meeting First (Usually)

In many cases, it’s best to meet with the employee before issuing a formal warning letter. This can be framed as a “welfare and attendance” meeting rather than a disciplinary meeting.

In that meeting, you can:

• explain the attendance concerns and business impact;
• ask if there’s an underlying issue affecting their ability to attend work;
• remind them of reporting/evidence requirements; and
• discuss whether adjustments are possible (for example temporary modified duties or hours).

After the meeting, document what was discussed, even if you don’t issue a warning yet.

Step 4: Escalate To A Written Warning If The Issue Continues

If absences continue at a concerning level, or the employee isn’t complying with evidence/notification rules, a written warning letter can be appropriate.

Many businesses align this with their broader disciplinary framework - for example, verbal warning → written warning → final warning → termination (though you don’t always have to follow this exact sequence, depending on the severity and circumstances).

If you’re managing performance concerns more broadly, it can help to understand how formal warnings typically work in Australia, and how they fit into a defensible process.

What To Include In An Excessive Sick Leave Warning Letter (Employer Checklist)

A well-drafted excessive sick leave warning letter should be clear, neutral in tone, and focused on expectations and next steps.

Here’s what we usually recommend including.

1. The Purpose Of The Letter

Start by stating that the letter is a formal warning regarding attendance/sick leave levels and/or failure to comply with notification/evidence requirements.

2. The Facts (Dates And Patterns)

List the relevant absences and why they are concerning. Keep it factual and specific. For example:

• number of sick leave days in a period;
• pattern of short-notice absences;
• repeated absences on specific days;
• lack of supporting evidence where requested.

Avoid accusing the employee of dishonesty unless you have strong evidence and have taken advice.

3. The Operational Impact

Briefly explain how the absences affect the business. This is especially important for small businesses where one person’s absence has a bigger ripple effect.

4. The Rules And Expectations Going Forward

Clearly set out expectations, such as:

• how and when they must notify you of an absence;
• requirements to provide evidence (and by when);
• any expectations around attending scheduled shifts;
• what will happen if the issue continues.

Where relevant, reference your workplace policies and any applicable Award provisions (in plain English).

5. A Chance To Respond (Procedural Fairness)

Include a line inviting the employee to provide context, including whether there’s an underlying health issue or other circumstances impacting attendance. You can also offer a follow-up meeting.

6. Support And Next Steps (Where Appropriate)

Depending on the situation, you might mention:

• availability of EAP (if you offer it);
• temporary adjustments (if feasible);
• a requirement for a fitness-for-work clearance if duties involve safety-sensitive work.

7. Clear Consequences

Be transparent that continued excessive absences or non-compliance with requirements may lead to further disciplinary action, up to and including termination.

If you’re heading toward a more serious disciplinary step, you may also consider a process that escalates beyond a warning letter - for example, a formal request for explanation. In some situations, employers issue show cause letters to give the employee a clear opportunity to respond before a final decision is made.

8. Professional, Neutral Tone

Even if you’re frustrated, the letter should read as calm and professional. Assume it could be read by a regulator or tribunal later. A neutral letter protects you and keeps the conversation constructive.

What Happens After You Send The Warning Letter?

Sending an excessive sick leave warning letter isn’t the “end” of the process - it’s a milestone in documenting attendance management.

After you issue the letter, you should:

• Hold a follow-up meeting to confirm the employee understands the expectations.
• Monitor attendance over a defined period (for example 4-8 weeks, depending on the situation).
• Document everything (absences, evidence provided, communications, and operational impacts).
• Apply the same standards consistently across the team.

If The Employee Improves

Great - that’s the best outcome. Keep the file note and letter on record, but you generally don’t need to take further action.

If The Employee Doesn’t Improve

If the excessive absences continue, your next step depends on the “why”. For example:

• If the employee is not following notification/evidence rules, further disciplinary action may be appropriate.
• If there appears to be an ongoing capacity issue (for example a medical condition affecting attendance), you may need to explore medical capacity processes and reasonable adjustments before considering termination.
• If you believe misconduct is involved (for example falsified evidence), you may need a more formal investigation process before any outcomes.

In more serious cases, employers sometimes consider interim steps during an investigation, but these are limited and should be approached carefully. In many workplaces, “standing down” without pay is only permitted in specific circumstances (for example, during protected industrial action, or where a contract/Award/enterprise agreement allows it). Often, a safer interim approach is directing the employee not to attend work on full pay while enquiries are made. If you’re considering options, it’s worth getting advice and reviewing standing down an employee pending investigation.

If It Escalates To Termination

Termination decisions in sick leave scenarios should be handled carefully, especially where health issues may be involved. Even in less complex situations (like early employment), you still want a defensible process and correctly drafted documentation. If the employee is still within early employment stages, it’s also worth understanding how termination during probation is handled in practice.

If employment does end, make sure you calculate final entitlements correctly and consider whether you’ll be paying notice or making a payment instead. (Many employers also ask about payment in lieu of notice and what needs to be included.)

Key Takeaways

• An excessive sick leave warning letter should focus on facts, expectations, and process - not assumptions about whether the employee is “really” sick.
• There’s no fixed legal definition of “excessive” sick leave in Australia, so context matters (frequency, patterns, business impact, and evidence).
• Before issuing a warning, it’s best practice to gather records, check your policies/Award obligations, and have a meeting to discuss attendance concerns.
• A strong warning letter includes dates, operational impacts, clear attendance/evidence expectations, an opportunity to respond, and transparent consequences.
• Be careful of legal risks around unfair dismissal, general protections, discrimination, and privacy when managing attendance issues.
• If the issue continues, consider the appropriate next step (further warning, medical capacity process, investigation, or a formal escalation pathway).

Important: This article is general information for Australian employers and isn’t legal advice. Because leave, evidence requirements and disciplinary processes can depend on your Award/enterprise agreement, policies and the employee’s circumstances, it’s worth getting advice before taking action.

If you’d like help preparing an excessive sick leave warning letter (or managing ongoing attendance issues the right way), you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.