Sick Leave Entitlements In Victoria: Employer’s Compliance Guide

Understanding sick leave entitlements in Victoria is a key part of running a compliant, people-first workplace. Supporting your team when they’re unwell isn’t just the right thing to do - it’s required by Australian employment law.

If you’re unsure how personal (sick and carer’s) leave accrues, what full-time and part-time employees are entitled to, or what evidence you can reasonably request, you’re not alone. The rules sit under the National Employment Standards (NES), so it’s important to get them right from day one.

In this guide, we break down how sick leave works in Victoria, how it accrues, common scenarios (like running out of leave or requesting evidence), and the documents and policies you should have in place to stay compliant and avoid disputes.

Sick Leave Basics In Victoria: What Employers Need To Know

In Victoria, paid sick leave sits within “personal/carer’s leave” under the National Employment Standards (NES). These minimum standards apply to most employees nationwide, including Victorian workplaces covered by modern awards or enterprise agreements (which can add benefits but can’t undercut the NES).

Personal/carer’s leave allows an employee to take paid time off if they’re unfit for work due to illness or injury, or to care for an immediate family or household member who is sick, injured, or affected by an unexpected emergency (carer’s leave).

At a glance:

• Permanent full-time employees are entitled to 10 days of paid personal/carer’s leave per year, accruing progressively.
• Permanent part-time employees accrue the entitlement on a pro‑rata basis according to their ordinary hours.
• Casual employees do not receive paid personal/carer’s leave, but can take up to two days of unpaid carer’s leave per occasion if the criteria are met.

Personal/carer’s leave is paid at the employee’s base rate for their ordinary hours of work. If a public holiday falls during a period of paid personal/carer’s leave, the public holiday is paid separately and does not reduce the employee’s leave balance.

Unused paid personal/carer’s leave rolls over year to year and is not paid out on termination unless an industrial instrument or contract says otherwise. For more on end-of-employment outcomes, it helps to understand what happens to unused sick leave.

How Sick Leave Accrues (Full-Time, Part-Time And Casual)

Personal/carer’s leave is an accruing entitlement. It builds up progressively based on an employee’s ordinary hours of work and begins on the employee’s first day of employment.

• Full-time employees: Accrue 10 days per year of service (equivalent to 76 hours for a standard 38‑hour week), credited progressively each pay period.
• Part-time employees: Accrue on a pro‑rata basis in line with their ordinary hours of work.
• Casual employees: No paid personal/carer’s leave. They may take unpaid carer’s leave when eligible, and their casual loading compensates for the absence of paid leave entitlements.

Does Sick Leave Accrue During Other Types Of Leave?

Personal/carer’s leave generally accrues when an employee is working and during periods of paid leave such as paid annual leave and paid personal/carer’s leave.

It does not accrue during periods of unpaid leave (for example, unpaid parental leave or unpaid carer’s leave).

What About Long Service Leave?

In Victoria, taking long service leave does not break service, but personal/carer’s leave does not usually accrue while an employee is actually on long service leave. Keep your payroll settings aligned with Victorian long service leave rules and your applicable award or agreement to avoid under‑ or over‑accrual.

Using Sick And Carer’s Leave: Evidence, Pay And Common Scenarios

Employees can access accrued personal/carer’s leave when they’re unfit for work or when they need to care for an immediate family or household member who is unwell or facing an emergency. As an employer, paying at the base rate for ordinary hours and keeping clear processes around evidence and notification will help things run smoothly.

Reasonable Evidence You Can Request

You can ask for “evidence that would satisfy a reasonable person” that an employee was unfit for work or needed to care for a family/household member. In practice, that’s usually a medical certificate or statutory declaration. Reasonableness depends on the circumstances (for example, duration of absence or patterns of absence). If you’re setting expectations in your policies, ensure they remain consistent with what’s reasonable under the Fair Work framework. For more detail, see when employers can legally ask for medical certificates.

When Paid Sick Leave Runs Out

If an employee has used up their paid personal/carer’s leave but remains unfit for work, you can discuss alternatives such as taking annual leave (with mutual agreement) or leave without pay. While you can’t force an employee to take annual leave in most circumstances, you may agree to it, and a request for annual leave must not be unreasonably refused. If unpaid time away is the only option, make sure your approach aligns with your industrial instrument and your business’ operational needs. Helpful guidance is available on managing sick leave when entitlements run out.

Carer’s Leave Versus Sick Leave

Paid carer’s leave comes from the same personal/carer’s leave balance as sick leave. If a permanent employee’s paid balance is exhausted, they may take up to two days of unpaid carer’s leave per occasion (when the criteria are met). Make sure your timekeeping differentiates the reason for leave (sick versus carer’s) even though they share the same paid entitlement.

Victorian Sick Pay Guarantee (Pilot)

Victoria’s Sick Pay Guarantee is a state-funded pilot that allows some eligible casual and contract workers to claim limited paid sick and carer’s leave directly from the Victorian Government. It’s not an employer-paid entitlement and does not change your NES obligations. You won’t be invoiced for these payments, but it’s good practice to communicate clearly with your eligible workers so they understand what support may be available to them outside their employment entitlements.

Staying Compliant: Policies, Record-Keeping And Privacy

Getting the processes right behind the scenes will help you avoid payroll errors, underpayments and disputes.

Set Clear Policies And Contracts

• Employment Contract: Confirm personal/carer’s leave entitlements, notification and evidence requirements, and how leave is recorded. A well-drafted Employment Contract sets expectations and helps prevent confusion.
• Workplace Policies or Staff Handbook: Outline request procedures, evidence expectations, privacy considerations and how patterns of absence are managed. A practical, accessible Staff Handbook supports consistency across your team.

Record-Keeping And Payroll Controls

Under workplace laws, you must keep accurate records of leave accrual and usage for at least seven years. Configure your payroll system to:

• Accrue personal/carer’s leave progressively based on ordinary hours.
• Exclude accrual during unpaid leave and (in Victoria) during periods of long service leave.
• Differentiate between paid personal/carer’s leave and unpaid carer’s leave.
• Prevent deductions for public holidays that fall during a leave period.

Privacy: Do You Need A Privacy Policy?

If you collect and hold employee health information (for example, medical certificates), you must handle it securely and lawfully. Many Australian businesses are covered by the Australian Privacy Principles (APPs), but there is a small business exemption for some entities with annual turnover of $3 million or less. Important exceptions apply - for example, health service providers and certain activities can still trigger APP obligations even under that threshold. In Victoria, the Health Records Act also applies to health information and sets additional rules for its handling.

In practice, it’s prudent to adopt a clear, practical Privacy Policy and internal procedures that address how medical evidence is collected, stored and accessed, regardless of whether an exemption might apply. Keep access on a strict need-to-know basis and limit use to lawful purposes connected with the employment relationship.

Common Mistakes To Avoid (And How To Fix Them)

Small errors around sick leave can quickly become big issues. Here are common pitfalls - and how to steer clear of them.

• Mixing up entitlements: Personal/carer’s leave is not the same as annual leave. Keep accruals and balances separate, with clear codes in payroll.
• Misapplying rules to casuals: Casual employees don’t get paid personal/carer’s leave, but they can access unpaid carer’s leave per occasion when eligible.
• Over‑ or under‑accruing: Check your payroll settings for accrual during paid leave, unpaid leave and long service leave to avoid miscalculations.
• Unreasonable evidence demands: You can request evidence, but it must be reasonable in the circumstances. Align your policy with what a reasonable person would accept and see our guidance on medical certificate requests.
• Refusing annual leave when sick leave runs out: If an employee asks to use annual leave while unwell and they have balance available, consider the request fairly - it must not be unreasonably refused.
• Ignoring rollover rules: Unused paid personal/carer’s leave rolls over year to year for permanent staff; there’s no “use it or lose it” under the NES.
• Forgetting documentation: Keep contracts, policies and records up to date. If processes feel unclear, refresh your workplace policies and ensure managers apply them consistently.

Finally, make sure employees know how leave interacts with notice periods and other employment events. If you’re unsure, it’s worth a quick review with your legal team before making a decision that could trigger a dispute.

Key Takeaways

• In Victoria, paid personal/carer’s leave is set by the NES: full‑time employees accrue 10 days per year and part‑time employees accrue pro‑rata; casuals receive no paid entitlement but may take unpaid carer’s leave per occasion when eligible.
• Leave accrues progressively based on ordinary hours, generally accrues during paid leave (but not unpaid leave), and does not usually accrue while an employee is on long service leave in Victoria.
• Evidence must be “reasonable” - typically a medical certificate or statutory declaration - and employees are paid at their base rate for ordinary hours when on paid personal/carer’s leave.
• When paid sick leave runs out, options include mutually agreeing to annual leave or taking leave without pay; a request to use annual leave must not be unreasonably refused.
• Victoria’s Sick Pay Guarantee is state‑funded for eligible workers and doesn’t change or replace your NES obligations.
• Strong foundations - a clear Employment Contract, practical policies, accurate record‑keeping and an appropriate Privacy Policy - reduce risk and help you stay compliant.

If you’d like a consultation on sick leave compliance or reviewing your workplace policies for your Victorian team, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.