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It’s never fun thinking about being unwell, but as a business owner or employee in New South Wales (NSW), understanding your sick leave entitlements is essential. Whether you’re growing a small team or navigating your own employment contract, knowing your rights and obligations around sick leave isn’t just good practice – it’s legally required. But what exactly does sick leave entitlement in NSW look like in 2024? How does sick leave accrue, and how many sick days are you actually able to take in a year?
In this guide, we’ll answer your top questions about sick leave in NSW, demystify how it works for both employees and employers, and point you towards the legal requirements and best practices to keep your workplace fair and compliant. We’ll also touch on specialist areas like NSW Health sick leave and how sick leave interacts with carer’s and bereavement leave. Whether you’re just starting your business or you simply need a refresher, let’s break down everything you need to know.
What Is Sick Leave Entitlement in NSW?
Sick leave entitlement is a legal right that allows employees to take paid time off when unwell or injured and unable to work. Sick leave – sometimes called personal leave – applies to permanent full-time and part-time employees across NSW (and indeed, all of Australia) under the National Employment Standards (NES). Casual employees aren’t entitled to paid sick leave, but may be entitled to unpaid carer’s leave in certain circumstances.
In NSW, sick leave forms part of an employee’s minimum entitlements and is designed to protect both your wellbeing and the business’ productivity. Having clear policies and practices in place ensures everyone knows where they stand – and helps prevent disputes down the line.
How Much Sick Leave Per Year in NSW?
The amount of sick leave you’re entitled to depends primarily on whether you’re full-time or part-time:
- Full-Time Employees: Are entitled to 10 days of paid sick leave per year.
- Part-Time Employees: Receive a pro-rata amount of sick leave based on the number of ordinary hours they work (for example, if you work half the full-time hours, you get 5 days).
Sick leave is also sometimes referred to as “personal/carer’s leave” because it covers situations when you are unfit to work or when you need to care for an immediate family or household member who is sick, injured, or faces an emergency.
It’s important to know these 10 days are per year of service and not limited to the calendar year – so entitlements reset on your work anniversary, not every January.
Does Sick Leave Accrue in NSW?
Yes, sick leave accrues progressively throughout the year in NSW for permanent employees. This means you don’t receive all 10 days upfront, but rather a portion each week or month based on the ordinary hours you actually work.
Here’s how it works:
- Your sick leave entitlements build up (accrue) as you work – meaning you “earn” sick leave progressively, not in a lump sum.
- Any unused sick leave rolls over indefinitely year to year. There’s no cap on how much sick leave you can accumulate over your employment period.
- If you change jobs, your accrued sick leave does not transfer to your new employer (and it isn’t paid out when you leave).
This system helps protect employees during longer periods of illness or multiple sick events across different years. Employers should keep careful records of each staff member’s leave accruals.
How Is Sick Leave Calculated in NSW?
Understanding how sick leave is calculated can help both employers and employees avoid misunderstandings. Here’s the breakdown:
- Your sick leave accrual is based on your ordinary hours of work (not overtime).
- For a full-time employee working 38 ordinary hours per week, you’ll accrue a total of 76 hours per year (10 days x 7.6 hours).
- Part-time employees’ entitlements are calculated proportionally, based on their ordinary hours.
- Accrual usually appears on your payslips and should be clearly tracked (employers are required by law to keep these records).
It’s important to check your employment contract, award, or registered agreement for any terms that improve on this minimum (but can’t offer less).
If you’re ever unsure, review your employment contract to understand your specific terms and conditions, or get legal advice.
When Can Sick Leave Be Used in NSW?
Sick leave (personal leave) can be taken by a permanent employee in NSW when:
- You are unwell or injured (unsuitable for work as a result of personal illness or injury).
- You need to provide care or support to a member of your immediate family or household who is sick, injured, or dealing with a family emergency.
This includes scenarios like illness, accidents, and medical appointments – provided you cannot reasonably work due to your health or the care responsibilities required at home.
Employers are entitled to ask for a medical certificate or statutory declaration as reasonable proof, especially when multiple or consecutive days are taken off.
How Many Sick Days Can Be Taken in a Year in NSW?
The standard entitlement for a full-time worker is 10 days of paid sick leave per year of service, with part-time workers receiving a proportional amount. If you use all your accrued sick leave, any additional absences would be unpaid, unless an employer or award allows for more paid leave.
There is no maximum “cap” for how many sick days you can take in a year, as long as you have sufficient accrued leave. If you accrue more than 10 days over time (due to not using your sick leave in previous years), you may use your entire accrued balance if medically necessary.
Sick Leave and Carer’s Leave: What’s the Difference?
In most cases, sick leave and carer’s leave fall under the same entitlement – called personal/carer’s leave – with a combined balance. That means your 10 days per year in NSW covers both:
- Sick leave for your own illness or injury
- Carer’s leave for caring for a family/household member
Sick leave (personal leave) is paid for permanent employees, while casuals may access unpaid carer’s leave (usually 2 days per occasion).
For a deeper look at carer’s leave, see our full guides: Carer’s Leave in Australia: What Employers and Employees Need to Know and Carer’s Leave Rights and Workplace Entitlements.
What About NSW Health Sick Leave & Bereavement Leave?
If you work in the public health sector under NSW Health, your sick leave entitlements may be set out in specific policies or awards (such as the Health Employees Award or Nurses’ Award). While core entitlements generally align with minimum national standards – 10 days per year, accrual, etc. – there may be additional benefits, conditions, or processes.
For instance, bereavement leave (now formally called compassionate leave in the NES) is often covered too. Employees in NSW are generally entitled to two days of paid compassionate leave per occasion if an immediate family or household member dies or suffers a life-threatening illness or injury. This entitlement is separate from sick leave and is a legal minimum, though many workplaces (especially in health) will provide even more supportive options.
If you’re in NSW Health or another public sector job, check with your HR department or review your relevant enterprise agreements for any enhancements to the standard entitlements discussed here. You can also see our article on NSW Health sick leave entitlements for more info.
Do You Need a Medical Certificate for Sick Leave in NSW?
Employers in NSW can request reasonable evidence such as a medical certificate or statutory declaration when employees take sick leave. It’s best practice to provide a certificate if you’re away for two or more days or if your workplace specifically requires it for any absence.
- If requested, you must supply evidence for your absence “as soon as reasonably practicable.”
- The law doesn’t prescribe exactly what is “reasonable,” but more than one consecutive day usually justifies providing a valid certificate.
- If you fail to reasonably provide evidence, your employer may treat the leave as unpaid or take disciplinary action.
Always check your own workplace’s policy (and employment contract), as some workplaces may be more specific about documentation requirements.
Employers: What Are Your Obligations for Sick Leave in NSW?
As an employer in NSW, staying compliant with sick leave regulations isn’t just about ticking a box – it maintains trust, legal compliance, and helps you attract and retain top talent. Key employer obligations include:
- Accrue and track entitlements correctly for all permanent employees – use a payroll system or accurate records.
- Pay out sick leave at ordinary pay rates (no bonuses or overtime included) when it’s taken.
- Respect privacy – any medical certificates or information should remain confidential.
- Communicate entitlements clearly (in policies, handbooks, and contracts), so employees know what’s expected.
- Stay updated with awards and enterprise agreements – some industries (like health) have extra rules or benefits, so cross-check your coverage.
- Comply with Fair Work and anti-discrimination laws – don’t penalise workers for lawful absence on sick leave.
- If you’re unsure of your obligations, review All About Employers’ Liability or speak with a Qualified Employment Lawyer for tailored advice.
What Legal Documents and Policies Should Your Business Have?
Keeping on top of legal paperwork not only helps with compliance but can clarify workplace culture and expectations. Here are key legal documents and policies you should have around sick leave and absences in your NSW business:
- Employment Contract: Clearly sets out sick leave entitlements and evidentiary requirements. This creates clarity and alignment up-front. See our Employment Contract Templates Guide for more details.
- Workplace Policy or Staff Handbook: A well-defined policy can cover your approach to sick leave, carer’s leave, notification processes, and other absences. Our Workplace Policy & Staff Handbook Guide explains best practice.
- Leave Application Form or Process: A standardised process for applying for leave, lodging evidence, and recording absences avoids confusion.
- Privacy Policy: If you handle personal information or health certificates, your privacy policy should explain how these are managed and protected. Learn more about drafting a Privacy Policy for your workplace.
Having these documents tailored to your business and reviewed regularly can save headaches in the long run, especially as your team grows or workplace circumstances change.
Special Considerations: Modern Awards, Enterprise Agreements, and Industry-Specific Rules
Many employees in NSW are also covered by a modern award or enterprise agreement, which may supplement or improve upon the minimum NES entitlements. For example, healthcare workers, teachers, and those in hospitality might have extra sick leave days, special processes for applying, or additional portability when moving between employers in the sector.
Always check if a modern award or enterprise agreement applies to your business – these are legally binding and can override the NES (as long as employees receive at least the minimum). If you’re unsure about award coverage or compliance, it can be helpful to seek professional legal advice to avoid costly mistakes or underpayments.
Frequently Asked Questions About Sick Leave in NSW
1. Does Sick Leave Get Paid Out When You Resign?
No – unless included in a rare specific agreement or award, unused sick leave is not cashed out when employment ends. It is a “use it or lose it” entitlement.
2. Can Employers Refuse Sick Leave?
Employers generally cannot refuse sick leave if the employee has accrued entitlements and provides reasonable evidence. However, if an employee is repeatedly absent without satisfactory documentation, disciplinary processes may apply.
3. What Happens When Sick Leave Runs Out?
Once an employee has exhausted their paid sick leave balance, further absences for illness are generally unpaid (unless the employer voluntarily grants extra paid leave or an award entitles the worker to more).
4. Can Sick Leave Be Used During Notice Period?
Yes. If you’re unwell or injured during your notice period, you’re still entitled to use accrued sick leave according to the normal rules. You must still notify your employer and provide evidence if requested.
5. Do Public Holidays Affect Sick Leave?
If a day you’re on approved sick leave falls on a public holiday, it isn’t counted as sick leave – the public holiday comes first.
6. Is There Flexibility for COVID-19 and Pandemic-Related Absences?
Special rules and policy changes have come and gone as the pandemic evolves. Many businesses and awards have had temporary measures to expand leave or clarify processes for COVID-19 absences. Always stay up to date with Fair Work and industry notices, and consider additional policies for your workplace if needed.
Key Takeaways: Sick Leave Entitlement NSW
- All full-time employees in NSW are entitled to 10 days paid sick leave per year, and part-time employees accrue this on a pro-rata basis.
- Sick leave accrues over time, accumulates year to year if unused, and is not paid out upon termination.
- Sick leave and carer’s leave are bundled together as “personal/carer’s leave,” usable for both your own illness/injury and for caring needs.
- Clear communication, up-to-date documentation, and accurate recordkeeping are critical for legal compliance and a healthy work culture.
- Industry-specific rules (such as NSW Health or those under modern awards) may offer enhanced entitlements, so check if these affect your team.
- Employers must manage sick leave fairly and observe privacy. Employees should provide medical certificates as required.
- Sound legal documents and workplace policies are essential for clarity and compliance – review yours regularly or seek legal advice if you’re unsure.
If you would like a consultation on your sick leave entitlements, policies, or any other employment law concerns, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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