Understanding sick pay in Australia
Managing sick pay is crucial for both employers and employees. It ensures that staff can take time off when they’re unwell or need to care for a family member. Understanding sick pay helps businesses stay compliant with the Fair Work Act and avoids costly mistakes. This guide explains the key rules surrounding sick leave, carer’s leave, and how to manage it efficiently.
Why clear sick pay policies matter
Clear sick pay policies help businesses stay productive and build employee trust. When policies are simple and fair, teams know what to expect. There’s less confusion, fewer delays and a lower risk of legal issues.
In busy industries like healthcare, education and real estate, time matters. A sick employee in a medical clinic can mean cancelled appointments and extra pressure on others. A real estate agent off sick might delay a contract. In education, missing staff can affect student care and learning. Without a clear plan for sick leave, these moments can quickly become stressful.
Poor documentation or unclear policies can lead to:
- Payment delays for staff
- Mistakes in payroll or leave records
- Disputes between managers and employees
- Breaches of Fair Work obligations
It also opens the door to staff feeling unsupported or unsafe. When workers don’t know their rights, they may feel forced to work while unwell. This can reduce productivity and impact the whole team.
That’s why strong processes and digital tools are important. They help businesses:
- Collect the right documents from staff
- Record leave accurately
- Follow the rules with less admin work
Business Kitz gives teams an easy way to manage sick leave. Our platform helps create, sign and store all required leave documents. It ensures policies are clear and followed. Sick pay doesn’t have to be confusing or hard to track. With the right tools, businesses can support their people and stay compliant at the same time.
A quick guide to sick pay
Sick pay in Australia allows employees to take paid leave when they are unwell or need to care for an immediate family member. Full-time workers get 10 days per year, while part-time employees receive pro-rata leave. Casual workers do not receive paid sick leave. Employers must manage sick leave accurately to comply with the Fair Work Act and avoid legal risks.
What is sick leave and who is entitled to it in Australia?
Sick leave allows employees to take time off work when they are unwell or need to care for a sick family member. In Australia, the Fair Work Act outlines the rules for sick leave and carer’s leave.
Sick leave is the leave an employee takes when they are unwell. Carer’s leave is for employees who need to care for an immediate family member or household member who is sick or injured.
Types of employees and their sick leave entitlements
Employees accrue sick leave based on their work status. The table below shows the common entitlements:
| Employee Type | Leave Accrual | Paid/Unpaid |
|---|---|---|
| Full-time | 10 days/year | Paid |
| Part-time | Pro-rata | Paid |
| Casual | N/A | Unpaid |
Key points about sick leave
- Full-time employees receive 10 days of paid sick leave each year. This is for personal illness or injury.
- Part-time employees get sick leave on a pro-rata basis, meaning their entitlements are based on their weekly hours.
- Casual employees do not receive paid sick leave. They may take unpaid leave if needed.
Employees can carry over unused sick leave each year. There is no expiry date, so unused sick leave will continue to accumulate.
Employers must track sick leave accurately to ensure compliance. This includes calculating entitlements, keeping clear records, and ensuring payments are made on time. If employers fail to manage this correctly, they risk issues with Fair Work compliance.
Free resources to assist with managing sick leave
If you're looking for a simple and effective way to manage sick leave and other employee entitlements, the free documents available on the Business Kitz platform are a great resource. Think of it like a toolkit for running your business smoothly—just as a mechanic wouldn’t tackle an engine repair without the right tools, you shouldn't manage employee leave without the proper templates. These easy-to-use free forms, like the Leave request form and Leave record, can help streamline the process of managing sick leave, parental leave, and other leave types. Whether you're a small business or a larger organisation, these documents provide a straightforward solution to ensure you comply with relevant policies while keeping everything organised. Best of all, they're free to access, making it easier to manage employee leave without the hassle.
How to take paid sick leave: best practice steps for compliance
Taking paid sick leave properly helps businesses stay compliant and ensures staff are treated fairly. Here’s a step-by-step guide to help both employees and employers handle sick leave efficiently.
Required notice and communication
Employees must notify their employer as soon as possible when they need to take sick leave. Clear communication helps businesses plan and avoid disruptions. Employees should:
- Inform their manager or supervisor of their illness as soon as they can, ideally before their shift starts.
- Let their employer know how long they expect to be off work.
- Provide a medical certificate if required.
Employers should not ask for unnecessary details like a diagnosis. They only need to confirm that the employee is unwell and unable to work.
Timeframes: when and how to notify
Employers should set clear guidelines on when employees must notify them about sick leave. The sooner this happens, the better. Employees should inform their employer within a reasonable timeframe, preferably before the start of their working day.
Employers also need to respond quickly. Approving or denying sick leave should be done promptly to avoid confusion.
Using digital tools to simplify the process
Digital tools can help streamline the sick leave process. Using a platform like Business Kitz makes tracking and managing sick leave easier for both employees and employers. Our platform allows employees to submit leave requests, upload documents, and get updates quickly. This reduces paperwork and admin time.
Here’s a simple workflow for taking paid sick leave:
| Step | Action | Tool |
|---|---|---|
| 1 | Notify manager | Email/phone |
| 2 | Submit leave request | Business Kitz form |
| 3 | Attach supporting docs | Document vault |
| 4 | Receive approval updates | Email alerts/app |
By using digital tools, employers can ensure sick leave is handled efficiently and in line with compliance requirements.
Medical certificates and documentation: staying compliant without overstepping
Employers must ensure sick leave is properly documented to remain compliant with the Fair Work Act. However, they must also respect employee privacy by only requesting necessary information.
What qualifies as valid documentation?
A medical certificate is usually required when an employee takes sick leave. This confirms the employee's incapacity to work due to illness or injury. Common documents include:
- GP certificates: These are the most common and must include the date of illness and confirm the employee’s incapacity to work.
- Allied health certificates: These are valid when relevant to the employee’s condition. For example, a physiotherapist’s note for a back injury.
- Statutory declarations: These are valid if an employee cannot access medical care. The declaration must be truthful and provide a detailed explanation of the situation.
What can employers request?
Employers have the right to request documentation to support sick leave claims, but they cannot ask for more information than necessary. This means:
- Employers cannot ask for a diagnosis or personal health details.
- Employers can request a certificate confirming the employee’s illness and their inability to work.
Table of document types and acceptability
| Document | Valid For | Notes |
|---|---|---|
| GP Certificate | Most sick leave | Must include date and incapacity |
| Allied Health | If relevant | Accepted with condition-related reason |
| Statutory Declaration | In absence of medical access | Must be truthful and detailed |
Using tools to streamline documentation
Business Kitz makes it easy to collect, store, and track sick leave documentation. With our platform, employers can:
- Standardise document collection
- Store medical certificates securely
- Assist with your compliance
By using Business Kitz, businesses can stay compliant and efficient while respecting employee privacy.
Managing employee absence without disrupting business
Employee absence can disrupt business operations. However, businesses can manage absences effectively by following legal responsibilities and using smart strategies to maintain continuity.
Legal responsibilities: avoiding discrimination or undue pressure
Employers must treat employees fairly when they take sick leave. This means:
- Avoiding discrimination: Employers should not treat employees unfairly for taking sick leave. Sick leave is a legal right, and employees cannot be penalised for using it.
- Not pressuring employees: Employers cannot pressure employees to return to work before they are fit. Pressuring employees to return too soon can affect their health and lead to legal trouble.
Backup staffing strategies: on-call lists, workload balancing
To minimise disruption, businesses should have backup strategies in place. These strategies can include:
- On-call staff: Maintain a list of on-call staff who can fill in when someone is absent.
- Workload balancing: Ensure the workload is balanced across the team. This helps avoid overburdening other employees while keeping the business running smoothly.
Tools to support operational continuity
Using tools can help manage employee absences and keep operations on track. Some tools include:
- Team leave calendar: A shared calendar helps everyone know who is on leave and when. It makes it easier to plan ahead.
- Role handover templates: Use templates for clear role handovers. This ensures that critical tasks are completed without confusion.
Taking carer's leave for an immediate family member
Employees may need to take carer’s leave to look after a family member who is ill or injured. The Fair Work Act provides clear guidelines about who qualifies for carer’s leave and under what conditions.
Who qualifies as immediate family under Fair Work?
Under the Fair Work Act, immediate family includes close relatives such as:
- Spouse: Husband, wife, or partner (de facto or same-sex).
- Child: Includes biological, adopted, or stepchildren.
- Parent: Includes biological, step, or adoptive parents.
- Grandparent: Grandparents are considered immediate family.
Other relations like cousins or housemates do not automatically qualify unless they are financially dependent on the employee.
Examples of valid carer scenarios
There are many situations where an employee can take carer’s leave. Some examples include:
- Caring for a sick spouse who needs help with daily tasks.
- Looking after a child who is unwell or injured and requires constant care.
- Assisting an elderly parent who needs support after surgery.
It’s important for both the employee and employer to have clear communication about the situation to ensure compliance with carer’s leave entitlements.
Table of carer's leave eligibility
| Relation | Covered? |
|---|---|
| Spouse | Yes |
| Child | Yes |
| Grandparent | Yes |
| Cousin | No |
| Housemate | Only if dependent |
FAQ about sick pay and related leave in Australia
What is sick pay in Australia?
Sick pay is paid leave employees can take when they’re sick or injured and can’t work. Full-time and part-time employees are entitled to 10 sick days per year, according to the National Employment Standards. Casual employees don’t receive paid sick leave but may be eligible for unpaid sick leave.
How does the Fair Work Ombudsman define sick leave entitlements?
The Fair Work Ombudsman outlines that employees are entitled to paid sick leave under the National Employment Standards. Full-time and part-time employees accrue sick leave based on their ordinary hours of work. The entitlement lets an employee take paid sick or carer’s leave when they’re sick or need to care for a family or household member.
Can part-time employees take paid sick leave?
Yes, part-time employees can take paid sick leave. Their sick leave is calculated on a pro-rata basis, depending on their working hours. They are entitled to the same statutory amount as full-time employees, but the yearly entitlement is adjusted based on their average weekly hours.
What is carer’s leave and how does it differ from sick leave?
Carer’s leave lets an employee take time off to care for a sick family or household member. Unlike sick leave, which is for personal illness or injury, carer’s leave allows employees to support their loved ones during an unexpected emergency. Paid carer’s leave is also part of the 10 sick and carer’s leave days employees are entitled to per year.
What happens if an employee can’t work due to illness or injury?
If an employee can’t work because of sickness or injury, they can take sick leave. Employees must inform their employer of their illness, typically before their shift starts, and provide notice and medical certificates, such as a fit note, if required. Employees are entitled to paid sick leave for each year of employment.
What is the process for applying for sick leave?
Employees must notify their employer as soon as possible when they need to take sick leave. They should provide notice and medical certificates or a statutory declaration to confirm they can’t work. Employers may require a fit note if an employee has been away from work for several days.
What are the obligations of employers when it comes to sick leave?
Employers must ensure they comply with the National Employment Standards, which require them to provide paid sick leave for full-time and part-time employees. Employers must track and approve sick leave based on statutory entitlements and keep clear records. They must also meet requirements for annual leave, parental leave, and compassionate leave as applicable.
How does paid sick leave affect annual leave entitlements?
Paid sick leave does not affect an employee's annual leave entitlement. Employees are still entitled to paid annual leave based on their ordinary working hours. Sick leave and annual leave are separate entitlements, and both must be managed by the employer according to the National Employment Standards.
Is there a requirement for employers to pay sick leave?
Yes, employers must pay for sick leave as part of the statutory entitlements under the Fair Work Act. Employers must provide paid sick or carer’s leave to eligible employees based on their working hours and the requirements set out by the Fair Work Ombudsman.
Risks of poor sick leave management
Without clear systems, businesses risk:
- Staff disputes: Employees may feel their rights aren’t being respected.
- Legal issues: Non-compliance can lead to fines or lawsuits.
- Increased admin: Manual processes are time-consuming and prone to mistakes.
How digital tools help
Digital tools like Business Kitz make managing sick leave easier:
- Store documents securely and help with compliance.
- Save time on paperwork and reduce errors.
By using a digital solution, businesses can stay compliant, reduce stress, and focus on what matters.
SSP and Sickness Allowance explained
In the UK, Statutory Sick Pay (SSP) is government-funded. In Australia, the Sickness Allowance is part of the JobSeeker program. But in Australia, paid sick leave is employer-funded, not supported by the government.
Ready to streamline your sick leave?
Start today with Business Kitz—trusted by businesses across healthcare, real estate, and education. Ensure your sick leave process is compliant, efficient, and stress-free.
