Personal leave policies
Make sure your policies are clear and correct, and cover all forms of personal leave – including sick, carer's and compassionate leave.
Use our template below to help you create your leave policies. Note that the standards referred to in our HR manual template are taken from the Fair Work Act 2009.
Sick leave explained
What is commonly known as sick leave is personal leave and includes:
- sick leave
- carer's leave
- compassionate leave.
Personal leave forms part of the National Employment Standards (NES) – which apply to all employees covered by the national workplace relations system – so it's important you understand your employees entitlements as an employer.
Quick guide to managing personal leave
When can my employee take personal leave?
Your employee can take personal/carer's leave if they, or an immediate family or household member is sick, injured or has an unexpected emergency.
An employee's immediate family member includes spouse or de facto partner and their child, parent, grandparent, grandchild, sibling.
Your employee will need to give you notice as soon as practicable (which may be a time after the leave has started). They must also advise you of the period or expected period of leave.
You can ask an employee for a medical certificate for each period of personal/carer's leave.
- For sick leave – the certificate must state the employee was, is or will be unfit for work because of personal illness or injury.
- For carer's leave – the certificate must state the person the employee cared for, has had, or will have, a personal illness or injury.
A medical certificate doesn't have to give exact details about the injury or illness – asking for this information might breach the employee's privacy.
The employee can also supply a statutory declaration instead if it's impractical for them to provide a medical certificate. The NES requires documentary evidence "that would satisfy a reasonable person".
When paid personal/carer's leave is taken, the minimum requirement is that an employee must be paid at their base rate of pay for the ordinary hours they would have worked during the period.
Keep in mind this doesn't include:
- monetary allowances
- overtime or penalty rates
- any other separately identifiable amounts.
An employees' applicable award may provide a more favourable method of payment – in which case that's the payment that would be used.
How much personal/sick leave are my employees entitled to?
Under the National Employment Standards (NES), all full-time employees – except casuals – are entitled to a minimum of 10 days paid personal leave annually (which includes sick leave and carer's leave).
It starts to build up from an employee's first day of work and is based on the number of hours they work.
In addition, all employees – including casuals – are entitled to two days unpaid leave for each occasion to care for a member of their family or household who is sick, or affected by an unexpected emergency.
This may be different if the employee is covered by an award or enterprise agreement, or if the employee's common law contract contains more generous entitlements.
Personal leave and your cash flow
Making sure your cash flow is in order is one of the most important steps in making a business successful.
- Factor your staff's personal leave into your cash flow forecasting – so you don't get caught short.
- Make sure your cash flow forecast allows for the full amount of personal leave that's available to each employee.