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.
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:
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:
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.
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.
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.
Employees accrue sick leave based on their work status. The table below shows the common entitlements:Employee TypeLeave AccrualPaid/UnpaidFull-time10 days/yearPaidPart-timePro-rataPaidCasualN/AUnpaid
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.
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.
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.
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:
Employers should not ask for unnecessary details like a diagnosis. They only need to confirm that the employee is unwell and unable to work.
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.
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:StepActionTool1Notify managerEmail/phone2Submit leave requestBusiness Kitz form3Attach supporting docsDocument vault4Receive approval updatesEmail alerts/appBy using digital tools, employers can ensure sick leave is handled efficiently and in line with compliance requirements.
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.
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:
Employers have the right to request documentation to support sick leave claims, but they cannot ask for more information than necessary. This means:
DocumentValid ForNotesGP CertificateMost sick leaveMust include date and incapacityAllied HealthIf relevantAccepted with condition-related reasonStatutory DeclarationIn absence of medical accessMust be truthful and detailed
Business Kitz makes it easy to collect, store, and track sick leave documentation. With our platform, employers can:
By using Business Kitz, businesses can stay compliant and efficient while respecting employee privacy.
Employee absence can disrupt business operations. However, businesses can manage absences effectively by following legal responsibilities and using smart strategies to maintain continuity.
Employers must treat employees fairly when they take sick leave. This means:
To minimise disruption, businesses should have backup strategies in place. These strategies can include:
Using tools can help manage employee absences and keep operations on track. Some tools include:
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.
Under the Fair Work Act, immediate family includes close relatives such as:
Other relations like cousins or housemates do not automatically qualify unless they are financially dependent on the employee.
There are many situations where an employee can take carer’s leave. Some examples include:
It’s important for both the employee and employer to have clear communication about the situation to ensure compliance with carer’s leave entitlements.
RelationCovered?SpouseYesChildYesGrandparentYesCousinNoHousemateOnly if dependent
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.
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.
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.
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.
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.
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.
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.
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.
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.
Without clear systems, businesses risk:
Digital tools like Business Kitz make managing sick leave easier:
By using a digital solution, businesses can stay compliant, reduce stress, and focus on what matters.
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.
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.
