How Employers Should Manage Absence From Work In Australia

Unplanned absences happen in every workplace - people get sick, family emergencies pop up, and sometimes life just gets in the way. As a small business owner, the challenge isn’t stopping absences; it’s managing them fairly, legally and consistently so your team can keep delivering great work while you protect your business.

In this guide, we step through how to handle absence from work in Australia from an employer’s perspective - from day-to-day sick leave to ongoing or unexplained absences. We’ll cover what you can ask from employees, when medical evidence is reasonable, how privacy and discrimination laws come into play, and what to do when absences become a pattern or long-term issue.

What Counts As An Absence From Work In Australia?

“Absence from work” covers any situation where an employee doesn’t attend work as rostered or is unable to perform their duties. Common scenarios include:

• Paid sick or carer’s leave (National Employment Standards, or NES)
• Unpaid sick leave when paid entitlements are exhausted
• Authorised leave (annual leave, compassionate leave, parental leave, community service leave)
• Unauthorised absence (no approval, no notice, or failure to follow your process)
• Work-related injury or illness (including workers compensation and return-to-work plans)

Your obligations sit across several frameworks: the Fair Work Act (NES), your applicable modern award or enterprise agreement, anti-discrimination law, privacy law and any internal policies or contract terms you’ve set. The more clearly you define your approach to absences in your Employment Contract and policies, the easier it is to manage issues when they arise.

Why A Clear Absence Policy Protects Your Business

A practical, easy-to-follow absence policy helps your team know exactly what to do when they can’t attend work, and it helps you apply the rules consistently.

At minimum, set out:

• Who to notify, when and how (e.g. call your manager at least one hour before the shift, not by text)
• When medical evidence is required (e.g. same day for high-risk roles, or after two consecutive days of sick leave)
• How to request planned leave (forms, notice periods, approval process)
• What counts as unauthorised absence (and the consequences)
• Return-to-work steps after illness or injury (including any fitness-for-work assessments)

Most businesses document this inside a staff policy or handbook alongside other day-to-day rules. If you don’t have one yet, a tailored Staff Handbook can bring your procedures together and reduce confusion across rosters, leave and performance.

Step-By-Step: Managing Absence From Work

1) Get Notified Early And Document It

Ask employees to notify you as soon as practicable via your nominated channel. Record the date, time and reason provided. This paper trail will help if patterns emerge or if you need to make operational decisions quickly.

2) Clarify Entitlements And Pay

Confirm which leave applies (sick, carer’s, annual leave or unpaid) and how it will be recorded. Check your award or agreement for any extra rules. If the absence is during a notice period, there are specific rules about sick leave during notice that affect pay and timing.

3) Request Evidence Where Reasonable

You can generally ask for reasonable evidence (like a medical certificate or statutory declaration) to approve personal/carer’s leave. Be consistent with your policy and mindful of privacy (more on this below). If you have concerns about capacity to safely perform duties, you may also consider a fitness-for-work assessment.

4) Keep Operations Moving

Reallocate work, adjust rosters and communicate with affected customers or team members. A simple escalation plan helps you respond quickly without penalising the absent employee for genuine illness or emergencies.

5) Follow Up And Support A Safe Return

For short absences, a quick check-in and confirmation of the return date may be all that’s needed. For longer absences, set out a return-to-work plan and consider whether reasonable adjustments are required to support the employee safely resuming their role.

If someone becomes unwell while working, it’s important to respond appropriately from both a legal and wellbeing perspective. Our overview of being sick at work - employer responsibilities covers practical steps you can take on the day.

Medical Certificates, Sick Leave And Privacy

In Australia, employees are entitled to paid personal/carer’s leave if they are unfit for work due to illness or injury, or need to care for an immediate family or household member. You can request “reasonable evidence” for an absence. In practice, this is often a medical certificate or a statutory declaration.

Key points to balance compliance and privacy:

• Set clear rules in your policies about when evidence is needed (e.g. single-day absences in high-risk roles, or after two consecutive days in general roles).
• Only collect information you reasonably need to verify the absence or assess fitness for duty. Avoid asking for diagnostic details unless strictly necessary and justified.
• If there’s a safety or inherent requirements concern, you can request a fitness-for-work report. Our guide on requesting medical clearance to return to work explains when this is appropriate.
• Keep health information confidential and store it securely, consistent with privacy obligations. Limit internal access to those who need to know.

If paid entitlements are exhausted but the employee remains unfit for work, you may move to unpaid arrangements. There are several options, including annual leave by agreement or unpaid leave. For practical guidance, see our resources on managing sick leave when entitlements run out and your obligations around leave without pay.

Repeated Or Long-Term Absence: Performance, Adjustments And Next Steps

Repeated short absences and long-term illness require a careful, supportive and lawful approach. The goal is a safe and sustainable return to productive work where possible - and a fair process if that’s not achievable.

Spot Patterns Early And Talk Openly

Where absences become frequent or disruptive, invite the employee to a conversation about what’s going on. There may be underlying health, personal or workplace factors you can address (rostering changes, workload, reasonable adjustments, EAP support, etc.). Keep file notes of these discussions.

Assess Inherent Requirements And Reasonable Adjustments

Ask: what are the inherent requirements of the role, and can adjustments (temporary or permanent) help the employee perform them safely? Adjustments might include different duties, hours, equipment or timelines. Assess each case individually and consult with the employee.

Use Medical Information Safely And Lawfully

Where appropriate, seek a fitness-for-work assessment focused on capacity (not detailed diagnosis). Provide the assessor with a clear list of role requirements so you get useful, job-related advice. Again, store any health information securely and restrict access.

Consider Performance Process Or Capacity Management

If absence and capacity issues continue, you may move into a formal process. That could include performance expectations (attendance requirements, notice, evidence) or a capacity management pathway if medical information indicates the employee cannot meet inherent requirements now or in the foreseeable future.

When Termination On Medical Grounds Comes Up

Ending employment due to medical incapacity is a last resort. It requires a fair, consultative process - with current medical evidence - and careful consideration of obligations under the Fair Work Act, discrimination law and any applicable award or agreement.

Our overview of termination on medical grounds explains the legal tests, consultation, and risks to manage. If you get to this point, it’s wise to seek tailored advice before making a final decision.

Get Your Documents Working For You

Clear contract terms and workplace policies set expectations and reduce disputes. Make sure your Employment Contract and leave/absence procedures in your Staff Handbook cover notice requirements, evidence thresholds, return-to-work steps, and consequences for unauthorised absences. Consistent application is key.

Key Takeaways

• Define “absence from work” clearly and set a simple, consistent process for notice, evidence and approval in your contracts and policies.
• You can request reasonable evidence for personal/carer’s leave and, where appropriate, a fitness-for-work assessment - handle health information lawfully and with care.
• Treat frequent or long-term absences as a capacity and wellbeing issue first: consult, consider reasonable adjustments and plan a safe return where possible.
• When paid leave runs out, consider options like annual leave by agreement or unpaid leave and ensure any decision aligns with your award or agreement.
• If termination for medical incapacity is on the table, follow a fair process with current medical evidence and seek advice to reduce legal risk.
• Solid foundations - an Employment Contract and a Staff Handbook with practical absence rules - help you manage issues fairly and lawfully from day one.

If you’d like a consultation on managing absence from work policies or a specific attendance issue in your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.