Sick pay for casual workers

Casual contracts are common in many Australian industries, particularly in hospitality, retail, healthcare, and education. While they offer flexibility, they also come with unique challenges.

If you need immediate assistance on this issue, we recommend contacting our 24/7 HR advice line, and one of our employment relations experts will help you.

If you’re an employer wondering how sick pay for casual workers work, this guide breaks it down clearly. We’ll look at eligibility, calculating pay, and your responsibilities under Australian employment law.

What is a casual employee contract?

A casual employee contract is a type of employment agreement where you are not obliged to guarantee any set number of working hours. Workers on these contracts are typically called in as and when they are needed, and they’re not required to accept every shift offered.

Thanks to updates of the Fair Work Act 2009, the definition of a casual employee in Australia has changed. As of 26th August 2024, the Fair Work Ombudsman states that a casual employee is defined as follows:

If, when an employee starts employment: the employment relationship has no firm advance commitment to ongoing work, taking into account a number of factors, and they’re entitled to a casual loading or specific casual pay rate under an award, registered agreement, or employment contract.

While the flexible nature of these contracts can suit both parties, they raise some important questions around employment rights—including sick pay.

Do employees on casual contracts get sick pay?

Casual contract workers have some entitlements but are not entitled to paid sick leave. Under the National Employment Standards (NES), only full-time and part-time employees receive 10 days of paid personal/carer's leave pery year.

Casuals receive a higher hourly pay rate (called a casual loading, usually 25%) to compesnate for the lack of benefits like:

• Paid sick leave

• Annual leave

• Redundancy entitlements

What benefits do casual employees get?

Casual contracts do offer some entitlements inclduing:

• Unpaid carer's leave of up to 2 days per occasion to care for an immediate family or household member

• Unpaid compassionate leave

• Unpaid leave related to domestic and family violence

• Protection from dismissal for taking time off due to illness/injury (under general protections and unfair dimissal laws)

Get help with your responsibilities for casual workers

Understanding how to handle a casual employee is essential for staying compliant and supporting your workforce.

If you’re looking for more guidance on your responsibilities with casual workers, you can check out our other guides:

• Guidelines for hiring casual staff in Australia

• What are the benefits of hiring casual staff?

Use HR and payroll software where possible

If you regularly employ casual workers, investing in reliable HR software can save you time and stress. The right system can:

• Automate sick pay calculations based on real-time earnings data

• Help you maintain accurate employee records

• Flag eligibility for entitlements automatically

• Generate self-certification or sickness forms

This helps ensure compliance while reducing admin.

Discover BrightHR today by booking your free product demo!