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Employees calling in sick are an inevitable part of running a business – after all, falling ill is just a part of life. However, when an employee frequently takes sick leave or is absent for extended periods, it can impact your business’s productivity and bottom line.
Before you take any action, it’s crucial to understand your obligations as an employer. In many cases, dismissing an employee or taking disciplinary action without proper grounds can be unlawful, potentially exposing you to legal action and significant civil penalties. For further insights into your employer responsibilities, have a look at our Employment Law Services.
This article will guide you through what Australian law says about sick leave in 2025 and offer practical tips for managing these challenging situations effectively.
What Is Personal/Carer’s Leave?
Sick leave is part of a broader category of employee entitlements known as ‘Personal and Carer’s Leave’, which is provided for by the Fair Work Act 2009 (Cth) and the National Employment Standards (NES). These provisions continue to ensure that employees have sufficient time off to recover or care for dependants in 2025.
| Personal/carer’s leave is defined in section 97 of the Act as leave taken: ● When the employee is unfit for work due to a personal illness or injury ● To provide care or support to a member of the employee’s immediate family or household because of: ○ a personal illness or injury ○ an unexpected emergency An employee’s immediate family member includes their spouse or de facto partner, child, parent, grandparent, grandchild or sibling, as well as those of their spouse or de facto partner. |
Who Can Take Sick Leave?
Under the Act, all permanent employees – both full-time and part-time – are entitled to paid personal/carer’s leave, while casual employees generally are not eligible for paid leave.
That said, casual employees can take up to 2 days of unpaid carer’s leave each time a member of their family or household requires support.
How Many Days Of Personal/Carer’s Leave Can An Employee Take Each Year?
Under the NES in 2025, the standard entitlements for personal/carer’s leave are as follows:
| Type Of Leave | Entitlement |
| Paid personal/carer’s leave (full-time) | 10 days per year (accrues progressively, with unused days carried over) |
| Paid personal/carer’s leave (part-time) | Pro rata based on ordinary hours worked |
| Unpaid carer’s leave (casual employees) | Up to 2 days per occasion |
Note that some employees may have more generous leave entitlements under an award, enterprise agreement, or individual employment contract.
Paid Personal/Carer’s Leave
Full-time employees in 2025 are entitled to 10 days of paid personal/carer’s leave each year, which accrues progressively from their first day of work.
For part-time employees, personal/carer’s leave accrues on a pro rata basis based on their ordinary hours worked.
If an employee doesn’t use all of their accrued personal/carer’s leave, the remaining balance carries over to the next year.
Unpaid Carer’s Leave
If an employee has exhausted their paid entitlement or is a casual worker, they are entitled to up to two days of unpaid carer’s leave each time they need to provide care and support to a family or household member, in accordance with section 102 of the Act.
Unpaid Sick Leave
The Act and the Fair Work Regulations 2009 protect employees who are unable to work due to illness or injury. In essence, if an employee provides valid evidence of their condition, you cannot dismiss them solely because they have taken sick leave. The law generally protects employees who have been absent for less than 3 months – whether taken consecutively or on separate occasions over a 12-month period.
This means you should not terminate an employee’s employment if:
- They have been absent for less than 3 months (whether consecutively or intermittently over a 12-month period)
- They provide valid evidence of their illness or injury
How Much Do I Pay In Personal/Carer’s Leave?
As long as an employee has accrued personal/carer’s leave and exercises their right to take such leave in line with the NES, you are required to pay them their normal hourly rate. This obligation applies regardless of the employee’s role in your business.
Failing to make these payments may constitute a breach of the Act and could expose your business to legal action and potential civil penalties.
What Are My Options If An Employee Takes Too Many Sick Days?
Workplace Personal/Carer’s Leave Policy
Having a clear workplace policy that outlines the processes for taking personal/carer’s leave can help manage expectations and address issues as they arise. Your policy should specify the type of evidence required – for example, a medical certificate that confirms the legitimacy of the leave, without demanding unnecessary personal details that could breach privacy or lead to discriminatory practices.
It’s also advisable to detail the procedures employees must follow to notify management when taking leave, and to ensure that a copy of your policy is readily accessible – for instance, on your workplace policies page.
Have A Chat To See What’s Up
If you notice that an employee has taken numerous days of personal/carer’s leave, consider having a candid, confidential discussion with them. This conversation can help uncover any underlying issues-whether related to health, personal circumstances, or workplace dynamics-and allow you to explore possible solutions such as reasonable adjustments or flexible work arrangements.
Review and Update Your Sick Leave Policies Regularly
In 2025, staying current with legislative changes and industry best practices is more important than ever. Regularly reviewing and updating your workplace policies – particularly those governing personal and carer’s leave – ensures that your business remains compliant with the latest amendments to the Fair Work Act and the Disability Discrimination Act 1992. Engaging with legal experts from our Employment Law team can help identify areas for improvement and implement policies that support both your staff’s well-being and your business objectives.
Proceed With Caution
Disability Discrimination
As an employer, it’s vital to be aware of what you can and cannot do under discrimination law. The Disability Discrimination Act 1992 protects employees from unfair treatment on the basis of disability – whether that disability affects bodily or mental functions, cognitive or learning abilities, or other aspects of a person’s health.
- Loss or impairment of bodily or mental functions
- Conditions causing, or capable of causing, illness or disease
- Cognitive or learning disabilities
- Any other condition that impacts an individual’s ability to perform at work
Obtaining a medical certificate that simply satisfies a reasonable person is sufficient, so avoid requesting overly detailed information that could infringe on privacy. Disciplinary action or dismissal based solely on an employee taking personal/carer’s leave could raise a disability discrimination claim.
Protection From Dismissal
The Act further safeguards employees from unfair dismissal when they are temporarily absent due to illness or injury. If an employee has taken sick leave for less than 3 months and provided valid evidence, dismissing them could result in legal proceedings and civil penalties.
Following a transparent and fair process when addressing frequent absences can help prevent disputes and protect your business. For more guidance on fair dismissal practices and managing employee performance, explore our Employment Law resources.
Need Help?
Working out the best way for your business to respond when an employee takes a lot of personal/carer’s leave isn’t always easy, particularly for small business owners. It’s essential to balance your legal obligations with supporting your staff’s well-being.
Our team of expert lawyers is here to help you navigate these complex issues and ensure your policies remain both fair and legally compliant. For a free, no-obligation consultation, get in touch with us at team@sprintlaw.com.au or call 1800 730 617. You can also learn more about our tailored legal solutions for small businesses on our website.
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