If you operate a business and have employees, your employees are entitled to paid sick leave! Your full
time, part time and in some instances your casual employees are entitled to a minimum amount of paid sick
leave per year, and this is a cost to your business.
Of increasing concern are the 6 million sick days per year employers give to employees at significant
business cost to their bottom line and the tremendous flow-on effect that this has on small business and
the economy.
Sick Leave Entitlement
Entitlement to paid or unpaid sick leave is covered by state and federal legislation. Your employee entitlements
are generally calculated on the number of weeks’ continuous service your employee has worked with
your business. State and federal legislation provides for a minimum sick leave requirement, however some
businesses covered by awards or agreements have increased sick leave entitlements. You need to be aware
that you may be covered by an award without knowing it! You may have been roped into an award!
Federal Work Choices Coverage
If your business is covered by work choices legislation then regardless of state or territory your employees must receive 10 days sick leave per year. Sick leave accumulates.
Full Time Employees
Entitlement to paid sick leave for employees is:
- Queensland – 8 days per year
- New South Wales – 5 days per year
- Victoria – 8 days per year
- Tasmania – award dependent (up to 10 days paid Leave)
Part Ttime Employees
Entitlement to paid sick leave for employees is:
- Queensland – proportionate on hours worked
- New South Wales – proportionate on hours worked
- Victoria – proportionate on hours worked
- Tasmania – specific award dependent
Casual Employees
The whole arena of casual employment has become increasingly complex as many business owners move towards
casual employment arrangements. This has not escaped the notice of state and federal governments who have
kept pace by legislating new entitlements to casual employees.
Generally, though, casual employees are compensated by an hourly rate loading to compensate them for
not having sick leave entitlements. However you should be aware that there are exceptions which you must
investigate and take into consideration before making a decision. Keep yourself informed.
Other Sick Leave Purposes
Many state regulations and awards allow for a certain amount of paid sick leave to be taken as carers
leave for the employee to be absent to care for family members.
Problem Areas To Be Aware Of
Some employees seem to think that every 6 weeks they can have a ‘sickie’ and leave you carrying
the can and the cost!
Common problem areas in small business with sick leave are:
- Sick leave is viewed as a right to a day off
- It doesn’t cost anything, so they think
- Everyone is doing it (taking the day off)
What Can I Do?
You can take action to protect your business by having effective policies and procedures that set out
the obligations and responsibilities of your employees to act in the best interests of our business in
relation to any leave.
Having clearly stated and communicated policies, send a message to your employees that sick leave is
for genuine circumstances only.
As a business owner, monitor sick leave and take advice if you are uncertain on how to deal with frequently
absent employees who may not be sick.
It is important to take action and protect your business. Give your 'biz momentum' today!
Further Information
Philip Lye is Director of Biz Momentum Pty Ltd. He works with small to medium businesses to help
them cut through the maze of people matters. Clients get specific actionable strategies to protect their
business interests. For more information on Philip, visit www.biz-momentum.com and
subscribe to his free monthly e-zine.
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