Sick Pay Entitlements Explained: Employer’s Guide In Australia

Healthy teams are the backbone of a successful business. But when someone needs time off due to illness or a family emergency, you need to be confident you’re handling sick pay entitlements lawfully and fairly.

If you’re unsure about how personal/carer’s leave works in Australia-or whether Western Australia (WA) is different-you’re not alone. The rules can feel complex, especially if you manage a mix of full-time, part-time and casual staff.

In this guide, we break down how sick pay (personal/carer’s leave) works under the Fair Work system, where WA fits in, and the practical steps you can take to stay compliant while supporting your team.

What Is Personal/Carer’s Leave (Sick Pay) In Australia?

“Sick pay” is part of the broader entitlement called personal/carer’s leave under the National Employment Standards (NES). It covers two scenarios:

• Sick leave when an employee can’t work due to personal illness or injury.
• Carer’s leave when an employee needs to care for or support a member of their immediate family or household who is ill, injured or facing an emergency.

For eligible employees, personal/carer’s leave is paid leave. It’s separate from annual leave, and it accumulates over time based on ordinary hours worked.

Casual employees do not receive paid personal/carer’s leave. However, casuals are entitled to unpaid carer’s leave in certain circumstances (generally up to 2 days per permissible occasion).

Does Western Australia Have Different Rules?

Most private sector employers in WA are covered by the national Fair Work system and therefore follow the NES. A minority of businesses-typically sole traders, partnerships and some trusts-sit in WA’s state industrial relations system.

WA state system entitlements are set out in the Minimum Conditions of Employment Act 1993 and applicable WA awards. In practice, minimum personal/carer’s leave for full-time and part-time employees is broadly similar to the NES (with accumulation and carry-over), but you should confirm which system you’re in and whether any award or registered agreement sets higher or different minimums.

If you’re unsure whether you’re a national system employer or a WA state system employer, it’s worth clarifying early so you can apply the right rules consistently.

How Much Sick Leave Do Employees Get?

Under the NES, full-time employees are entitled to 10 days of paid personal/carer’s leave for each year of service. This entitlement is calculated and accrued in hours based on ordinary hours of work. Part-time employees accrue on a pro-rata basis.

• Accrual: Leave builds up progressively during the year and from year to year if unused.
• Payment: Paid at the employee’s base rate for the ordinary hours they would have worked during the absence (no penalties or loadings).
• Casuals: No paid personal/carer’s leave, but access to unpaid carer’s leave per occasion.

Personal/carer’s leave generally isn’t paid out on termination. For a deeper dive on end-of-employment scenarios, see what happens to unused sick leave in Australia.

Some modern awards or enterprise agreements may provide additional benefits or processes, so always check the instrument that applies to your workforce. Cashing out personal/carer’s leave is generally not permitted unless an applicable award or enterprise agreement allows it and strict conditions are met.

Employer Obligations: Notice, Evidence And Pay

Managing sick leave well is about more than paying correctly. The NES and applicable instruments set expectations around notice, evidence and record-keeping.

Notice

Employees must notify you as soon as practicable that they need time off and how long they expect to be away. Your workplace policy can set out preferred communication methods (for example, a phone call to the manager before a shift starts).

Evidence

You can request evidence that would satisfy a reasonable person that the leave was taken for a legitimate reason-commonly a doctor’s certificate or statutory declaration. Make your expectations clear in your policy and apply them consistently. If you’re weighing up when to ask, this guide to a medical certificate covers the essentials.

Pay Rate

When personal/carer’s leave is approved, pay it at the employee’s base rate for the ordinary hours they would have worked. Keep accurate records of hours, accruals and deductions.

Return-To-Work And Safety

Sometimes, it’s appropriate to seek up-to-date information about fitness for work or reasonable adjustments, particularly after a longer absence. Manage these situations carefully, with privacy and safety front of mind, and ensure you meet your general duty of care as an employer.

Protections And Risks

• It’s unlawful to take adverse action against an employee for exercising their workplace rights (including using personal/carer’s leave).
• Temporary absence rules and anti-discrimination laws may be relevant if you’re considering action in the context of illness or injury.
• If concerns arise about capacity for work, follow a fair process and consider termination on medical grounds only after you’ve explored reasonable options and obtained appropriate evidence.

What Happens When Sick Leave Runs Out?

If a full-time or part-time employee has used all paid personal/carer’s leave, there are still options depending on the circumstances.

• Unpaid leave: Employees may access unpaid carer’s leave per occasion or request other unpaid leave where appropriate. Our quick overview of unpaid leave explains the basics.
• Annual leave: Employees can ask to use annual leave (approval is at your discretion, subject to any award or agreement).
• Longer absences: Consider reasonable adjustments, medical information, and a fair process before making decisions that could affect employment. Complex cases often benefit from early advice.

If you’re dealing with repeated absences, potential misuse, or extended time away, a structured approach helps. This practical guide to managing sick leave when entitlements run out sets out sensible next steps.

Also keep in mind that employees can take personal/carer’s leave or provide evidence during a notice period. If this comes up, see how sick leave during a notice period is handled in practice.

Key Documents And Practical Steps For Compliance

Clear documents and simple systems are the best way to avoid confusion and stay compliant.

Core Employment Documents

• Employment Contract: Sets out leave entitlements, evidence requirements, notice expectations and confidentiality. Tailor terms for full-time, part-time and casual staff.
• Staff Handbook: Brings your policies together (sick and carer’s leave, notification procedure, evidence rules, return-to-work guidance) and helps with consistency across the team.

Privacy And Record-Keeping

• Privacy Policy: If you collect or store health information (like medical certificates), manage it securely and limit access. Your policy should explain how personal information is handled.
• Accurate records: Maintain clear records of accruals, leave taken, approvals and evidence received. Payroll and HR systems reduce errors and make audits easier.

Everyday Practices That Help

• Explain entitlements and processes during onboarding so employees know how to notify you and what evidence might be needed.
• Apply your policy consistently. If you require evidence for certain absences, use the same standard across the board.
• Encourage early conversations about workload or adjustments. Proactive communication can reduce unplanned absences.
• Train managers on fair process, privacy and documentation, so decisions are consistent and defensible.

Key Takeaways

• Under the NES, full-time employees accrue 10 days of paid personal/carer’s leave per year (calculated in hours); part-time employees accrue pro rata and unused leave carries over.
• Casual employees don’t receive paid personal/carer’s leave but can access unpaid carer’s leave per occasion when eligible.
• Most WA employers follow the national system; if you’re in the WA state system, minimums are broadly similar but check any WA award or instrument that applies.
• Set clear rules about notice and evidence, pay leave at base rate for ordinary hours, and keep accurate records.
• When paid sick leave runs out, consider unpaid options, potential use of annual leave, reasonable adjustments and a fair process before any decisions about employment.
• Lock in the basics with an Employment Contract, a practical Staff Handbook and a compliant Privacy Policy; get advice early for complex or long-term absences.

If you would like a consultation on your business’s sick pay entitlements or have any employment law questions, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.