Sick Pay For Casual Workers: Employer’s Guide In Australia

Hiring casual staff gives your business flexibility - but it also comes with specific obligations under Australian employment law. One of the most common areas of confusion is “sick pay” for casuals. Do you have to pay it? What leave do casual workers actually get? And how should you handle last‑minute absences without risking a Fair Work dispute?

In this guide, we’ll walk through what the National Employment Standards (NES) require for casual employees, how to manage sick days and evidence, what “casual conversion” means for paid leave, and the documents and policies that keep things clear and compliant.

By the end, you’ll understand what’s mandatory, what’s optional, and the practical steps to support your team while protecting your business.

What Does “Sick Pay” Mean For Casual Employees?

Under the Fair Work Act 2009 and the NES, casual employees do not accrue paid personal/carer’s leave (often called “paid sick leave”). The higher hourly rate for casuals includes a “casual loading” that compensates for missing entitlements like paid personal/carer’s leave, annual leave, notice of termination and redundancy pay.

That said, casuals still have important leave and safety rights (outlined below). It’s also critical to know that all employees - including casuals - now have access to paid family and domestic violence leave.

If you employ casuals, the key is to be precise with language: casual staff are not entitled to paid sick leave, but they may be entitled to other forms of leave or time off depending on the situation. Clear policies and consistent processes avoid misunderstandings and help you meet your obligations.

What Leave Can Casuals Take Under The NES?

While casual employees don’t have paid personal/carer’s leave, they do have access to other leave under the NES. Here’s what to plan for and how to handle requests confidently.

Unpaid Carer’s Leave (Per Occasion)

If a casual employee needs to care for or support an immediate family or household member who is ill, injured or has an unexpected emergency, they’re entitled to take unpaid carer’s leave. Typically, this is two days per permissible occasion.

Casuals should notify you as soon as practicable and may need to provide reasonable evidence, such as a medical certificate or statutory declaration. If you’re setting evidence rules, make sure they’re reasonable and applied consistently across your workforce. For more detail on handling unpaid time off across your team, see guidance on unpaid leave.

Compassionate Leave (Unpaid For Casuals)

Casual employees have the right to take compassionate leave (typically two days per occasion) if a member of their immediate family or household dies or suffers a life‑threatening illness or injury. For casuals, compassionate leave is unpaid.

As with carer’s leave, you can ask for reasonable evidence that the leave is needed.

Paid Family And Domestic Violence Leave (FDV)

All employees in Australia - including casuals - are entitled to 10 days of paid family and domestic violence leave each year (based on their rostered hours when they take the leave). This entitlement applies to small and large businesses (commencement dates differed, but it now applies across the board).

FDV leave exists to let employees deal with the impact of family and domestic violence (for example, to make arrangements for their safety, attend court, access police services, or consult with support services). Keep requests confidential and handle them with sensitivity, aligned with your workplace policies and privacy practices.

Unpaid Time Off When Sick (Not A Formal NES Entitlement)

Casuals don’t have a specific NES entitlement to “unpaid sick leave.” Practically, because casuals have no guaranteed hours, they can decline offered shifts when unwell without penalty. If a casual has been rostered and is too unwell to attend, you can treat the absence as an unworked shift rather than “leave” - just ensure your approach is consistent and non‑discriminatory.

If you offer additional discretionary leave in your contracts or policies, apply it consistently and document the process so expectations are clear.

Notifying You And Providing Evidence

It’s reasonable to require casuals to notify you as soon as possible if they can’t attend a rostered shift due to illness, and to provide evidence if you request it. Your policies should set out what constitutes reasonable evidence and how it should be provided.

For practical guardrails, align your processes with guidance on medical certificates for casual employees and when employers can ask for evidence. If your role requires a medical clearance to return (e.g. for safety‑critical duties), see when employers can request a medical certificate or clearance.

Managing Shifts And Absences For Casual Staff

Casual employment is based on ad hoc or irregular hours with no firm advance commitment to ongoing work. That flexibility cuts both ways - casuals can refuse shifts, and you can decide whether to offer them. However, the way you manage that flexibility matters.

Roster Changes And Shift Cancellations

Use clear, documented roster processes. Apply fair notice wherever you can, and avoid cancelling shifts at the last minute without good reason. If your award or agreement sets rules around minimum engagement, cancellation or changes, comply with those requirements. For broader compliance points, review minimum notice and fairness issues when cancelling casual shifts.

Refusing Shifts While Unwell

Casuals can decline offered shifts, including for illness or caring responsibilities. Make sure your managers understand this and don’t apply pressure or penalise staff for refusing a shift because they’re sick. For a quick overview of what’s reasonable, see how to handle casuals refusing shifts.

Work Health And Safety (WHS)

Your WHS duties apply to all workers, including casuals. If a worker is unwell, consider whether it’s safe for them (and others) to attend. Encourage staff to stay home if sick and follow safe return‑to‑work practices. A sound approach to sick employees at work reduces risk and supports a healthier workplace.

Casual Conversion: When Regular Casuals May Get Paid Sick Leave

Some casuals work regular and systematic hours for a long period. In those cases, “casual conversion” may apply. Broadly, eligible casuals must be offered conversion to part‑time or full‑time employment after a period of regular work (usually 12 months), unless there are reasonable business grounds not to make an offer.

If a casual converts, they become entitled to paid personal/carer’s leave and annual leave on a go‑forward basis (not back‑dated). Keep accurate time and roster records so you can identify when a casual may be eligible and communicate in writing about any offers or decisions not to offer conversion.

Make sure your contracts and policies reflect the correct casual definition and outline conversion processes. If you’re unsure how your awards or agreements handle conversion, it’s wise to review your arrangements with an employment lawyer and update your documentation accordingly.

Communication, Policies And Documents To Put In Place

Clarity up front avoids disputes later. Confirm entitlements and processes in writing and make sure managers and staff follow them consistently.

Contracts And Onboarding

• Employment Contract (Casual): Set out the casual nature of engagement, casual loading, award coverage, rostering, notification and evidence rules for absences, and how you’ll handle shift offers and cancellations.
• Give Required Statements: Provide every new employee with the Fair Work Information Statement (FWIS) and the Casual Employment Information Statement (CEIS). Keep a record that you provided both.

Policies And Day-To-Day Processes

• Workplace Policies: A leave and attendance policy should explain who to notify, when, and what evidence may be required. Include how you’ll manage FDV leave, privacy and support pathways.
• Staff Handbook: Keep your core policies in one place so casuals know where to find processes for rosters, absences and safety.
• Evidence And Privacy: If you request medical evidence, limit it to what’s reasonably necessary. Keep health information confidential and store it securely.

A clear, accessible policy framework helps managers make consistent decisions and shows you’re meeting your obligations if a complaint is made.

Can You Dismiss A Casual Because They’re Sick?

Short answer: no. You shouldn’t terminate or treat a casual worker adversely because they’re ill or because they exercised a workplace right (such as taking carer’s or compassionate leave, or refusing a shift when unwell). Doing so risks general protections or discrimination claims.

Casual engagement means you decide when to offer shifts, but that flexibility can’t be used to punish someone for a protected reason. If operational needs change, document genuine business reasons for offering fewer shifts and keep records of all communications. Apply decisions consistently across comparable roles.

If you’re contemplating ending a casual’s engagement for performance or conduct reasons, ensure you have a fair process and reliable records before taking action. Where safety is a concern, consider temporary alternative duties or a requirement for medical clearance consistent with your policies and the role’s inherent requirements.

Practical Tips To Manage Casual Absences Fairly

• Set expectations in writing: Confirm notification timeframes, who to contact, and acceptable evidence in your contracts and policies.
• Be consistent: Apply the same rules to all casuals in similar roles to avoid allegations of unfair treatment.
• Use reasonable evidence rules: Align requests with the reason and duration of the absence; see our guidance on medical certificates for casuals.
• Rostering discipline: Plan rosters carefully, build in coverage where possible, and avoid last‑minute cancellations unless unavoidable. Check your award for any notice or minimum engagement requirements when cancelling shifts.
• Encourage safe work practices: Make it normal to stay home when ill, and follow WHS processes for return to work.
• Keep records: Maintain accurate rosters, communications, offers/declines of shifts, and any evidence provided. Good records are your best defence if a dispute arises.

Key Takeaways

• Casual employees don’t accrue paid personal/carer’s leave; their hourly rate includes casual loading to compensate for missing entitlements.
• Casuals can access unpaid carer’s leave and compassionate leave per occasion, and all employees - including casuals - have 10 days of paid family and domestic violence leave each year.
• There’s no separate NES entitlement called “unpaid sick leave” for casuals, but they can refuse shifts when unwell and must not be penalised for using their lawful rights.
• Eligible casuals may need to be offered conversion to permanent employment, after which paid sick leave applies on a go‑forward basis.
• Put it in writing: use a clear Casual Employment Contract, a practical Workplace Policy and a Staff Handbook, and issue both the FWIS and CEIS during onboarding.
• Set reasonable evidence rules for absences, respect privacy, follow WHS obligations, and document decisions about rosters and shifts.

If you’d like a consultation on managing sick pay and leave for casual workers - or want a quick review of your contracts and policies - you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.