Managing sick leave

Sickness in the workplace is an unavoidable reality, and as an employer, knowing how to handle a sick employee fairly and efficiently is key to keeping your team happy, your business running smoothly, and your legal obligations in check.

But the management of sickness absence isn’t just about following the law—it’s also about fostering a supportive work environment where employees feel valued, even when they’re unwell.

So, let’s break down how you can master sickness management in a way that balances compassion with business needs.

What is sick leave?

Sick leave is the time your employee takes off work due to illness or injury. It can be short-term (a few days) or long-term (four weeks or more).

Employees may receive NES Sick Leave, Above NES Minimums or Discretionary Sick Pay during their absence, depending on your policy.

Managing sick leave correctly ensures compliance with employment laws while supporting employee wellbeing and productivity.

Have a clear sick leave policy

First things first, if you don’t have a solid sick leave policy, you’re asking for confusion and potential disputes.  So, it’s best practise to have one, your policy should cover:

• How employees should report sickness (who to contact and by when)

• Whether they need a fit note and when to provide one

• Sick pay entitlements

• How excessive sick leave will be dealt with 

• How long-term sickness will be handled

Essentially your policy should outline your sickness procedures at work. Make sure this policy is easily accessible, whether in an employee handbook, on your intranet, or pinned to the office noticeboard.

Communicate openly and supportively

No one likes calling in sick, and your employees may worry about being judged for taking time off. The way you handle these conversations matters.

When an employee reports a sickness, respond with empathy rather than scepticism. A simple “Hope you feel better soon, let us know if you need anything” can go a long way.

For longer absences, your sick leave policy should set out the frequency of communication. If not it’s a good to agree with your employee, when you should contact them. Remember to keep communication open but non-intrusive.

Understand sick pay law

In Australia, employees are entitled to NES Sick Leave if they meet eligibility criteria, but some businesses offer additional Sick Pay as an added benefit.

It’s up to you if you want to offer more than the standard NES entitlements.

• Full-time employees are entitled to 10 days of paid personal/carer's leave per year.

• Part-time employees receive a pro rata amount based on their ordinary hours.

• If you offer enhanced sick pay, make sure it’s clear in your contract or policy.

There are also different rules for sick leave depending on the length of time your employee is absent.

If your employee is sick for less than seven days in a row, they are allowed to self-certify their sickness. Simply put, self-certification of sickness is when the employee doesn’t need to provide proof of their sickness and can confirm the period of illness themselves.

However, if your employee is sick for more than 2-3 consecutive days, they must provide a fit note from a medical professional.

Managing excessive sick leave

Frequent absences can disrupt the workplace and affect productivity. If an employee is taking too much sick leave, you should:

• Keep detailed records to identify any patterns or recurring issues.

• Hold a meeting to discuss the absences with the employee in a supportive way, addressing any underlying causes.

• If necessary, seek medical advice to determine if workplace adjustments could help.

• Use your  absence management policy to set clear expectations about attendance and the potential consequences of excessive absenteeism.

• If no valid reason is found for excessive absences and performance is impacted, disciplinary procedures may be appropriate, as long as they align with employment law.

Manage long-term sickness absence properly

If a sick employee is off for four weeks or more, they’re considered long-term sick. At this stage, you may need to:

• Arrange a welfare meeting to understand their situation and exploring solutions to facilitate a smooth return to work or ongoing support.

• Arrange a Fitness for Work Assessment to understand their condition and workplace adjustments.

• Consider Reasonable Adjustments as outlined in the Fair Work Act 2009 and the Disability Discrimination Act 1992.

• Plan a Return-to-Work Process that includes a return-to-work interview and any necessary support.

If dismissal due to long-term sickness is necessary, proceed cautiously and seek employment relations advice to ensure you’re compliant with employment law.

Prevent absence where possible

Sickness management isn’t just about reacting to illness—it’s about preventing unnecessary absences. Some key strategies include:

• Encouraging a healthy work-life balance (no glorifying burnout!)

• Offering mental health support (stress is a huge driver of sickness absence)

• Creating a positive, open culture where employees feel comfortable discussing health issues

A happy, supported workforce is a healthier workforce.

Get help managing sickness in your workplace

Managing sick leave effectively is all about balancing legal compliance, business needs, and employee wellbeing. With a clear policy, good communication, and the right processes in place, you can handle sickness in the workplace fairly and smoothly—while keeping your team engaged and motivated.

Yet keeping track of employee sickness, fit notes, sick pay entitlements, and return-to-work processes can be overwhelming—especially in larger teams.

That’s where absence management software comes in. The right system can help you:

• Track sickness absence in real-time: See patterns in employee sickness and identify any recurring issues.

• Automate sick pay calculations: Ensure all types of Sick Pay are calculated correctly, reducing payroll headaches.

• Store and manage fit notes: Keep all necessary documentation in one place, making audits and compliance checks easier.

• Schedule return-to-work plans: Set reminders for check-ins and phased returns, so employees aren’t left in limbo.

• Spot trends and take action: Identify areas where workplace adjustments or wellbeing initiatives could help reduce absences.

Investing in absence management software makes handling sick leave entitlement more efficient, ensuring compliance with employment law sick leave regulations while keeping your business running smoothly.

If you’re juggling spreadsheets or relying on manual tracking, it might be time to upgrade your approach. A smarter system can save you time, reduce errors, and help you support your employees better.

See for yourself how absence management software from BrightHR can help by booking a free demo today!