Sick leave for mental health

The number of employees taking time off for mental health issues, including anxiety, stress, and depression, has risen drastically over the past few years.

As these absences continue, it raises the important question—can employees take sick leave for mental health reasons? The way you handle this can make a huge difference. Supporting your employees when they need to take sick days for mental health conditions, helps create a healthy, high-performing workplace.

In this article, we'll cover what you need to know about mental health sick days, whether you should be offering extra support like an EAP or dedicated mental health days, and what you should do if someone calls in sick for a reason related to mental health.

Is taking sick leave for mental health allowed in Australia?

Simply put, yes. Your employees can take sick leave for mental health issues in the same way they would for physical sickness under the Fair Work Act 2009. And if they meet the eligibility criteria for NES Sick Leave, they are entitled to that too.

Stress, anxiety, depression and burnout are all valid reasons for sick leave.

If the absence last more than 3 consecutive days, your employees will need to provide a medical certificate from a medical professional. Anything shorter, your employees can self-certify.

It’s important to note that in certain situations, mental health issues can be classified as a disability, but this is only the case if the necessary legal criteria are met under the Disability Discrimination Act.

What if the mental health condition is a disability?

A mental health condition is considered a disability if the condition :

• Has a ‘substantial adverse effect’ on your employees’ life

• Lasts or is expected to last more than 12 months

• Affects your employee’s ability to do normal day-to-day activities

The key thing is that mental health should be treated the same as a physical health when it comes to sick leave. And if the condition is considered a disability, you have a legal duty to make reasonable adjustments. Both to support the employee at work and during any absence or return to work.

Reasonable adjustments could include:

• Flexible working hours

• Changes to workload or duties

• A phased return to work

• Access to mental health support or counselling

Failing to recognise and support mental health conditions in line with disability rights can lead to claims of discrimination. So, it’s not just about doing the right thing—it’s about legal compliance too.

If you’re ever in doubt it’s best practise to seek professional employment law advice.

Should mental health sick leave be separate leave?

While standard sick leave covers both physical and mental health, you may find yourself asking if you need to offer more. At minimum, mental health should be fully covered under your existing absence policy.

However, some employers are going a step further by offering additional time of work for mental health related issues—no questions asked.

These are sometimes called 'wellbeing days' or 'mental health days'  and are designed to encourage employees to take time out before they hit crisis point. While not a requirement, it's worth considering.

Offering extra support send a strong message that you take your employees’ mental wellbeing seriously. And honestly? It can pay off in better morale, lowering long term absence and higher retention.

What to do when an employee calls in sick for mental health?

When an employee reaches out and say’s they need to take a sick day for mental health reasons, your response sets the tone for how supported they’ll feel. It’s a key opportunity to build trust, reduce stigma and show that mental health is taken seriously in your workplace.

Here’s a simple, supportive approach you could take:

• Thank them for letting you know and reassure them that their wellbeing is important

• Avoid asking for details and treat the absence like any other sick day

• Let them know what is required, such as a medical certificate is the absence is longer than 2-3 consecutive days

• Ask how they’d like to stay in touch while they’re off

• Record the absence as sick leave, not annual leave or unpaid leave and keep it confidential

• Support their return and ask if any adjustments could support their return

• Lead by example and encourage open conversations about mental health to reduce the stigma

Why using sick leave for mental health matters?

Being open and supportive about using sick leave for mental health isn’t just good ethics — it’s good business. When employees know they can be honest about needing a sick day for mental health reasons, you’re helping to build a workplace where people want to stay and do their best work.

• It reduces long-term absences

• It boosts productivity

• It shows that you're serious about your employee's wellbeing

Building a policy that supports mental health

If you want to get this right, a clear and inclusive sick leave policy is your best starting point. Your policy needs to be crystal clear that taking sick days for mental health is normal and supported. Alternatively, if you want to create a sperate workplace mental health and wellbeing policy you can do that too.

Here’s what a good policy should cover:

• Mental health conditions are treated the same as physical ones

• The process for reporting absences (the same as a physical sickness)

• Any extra support available, like an Employee Assistance Programme (EAP) or wellbeing initiatives

• Assurance of confidentiality and no judgement

You could also include whether you offer additional mental health days or encourage proactive mental health days off.

Make mental health support the norm with BrightHR

Supporting employees who take sick leave for mental health isn’t just about policies—it’s about people. The way you respond when someone needs time off, the flexibility you offer, and the tone you set all contribute to a workplace where mental health is treated with the same importance as physical health.

Ready to create a healthier, more resilient workplace? Download our free Guide to Workplace Wellbeing to see why wellbeing is a top priority for successful business owners and the tools available to help you boost employee performance.

Have further questions? Our 24/7 employment relations line, BrightAdvice, gives you instant expert guidance—day or night. Whether you’re managing a tricky absence or just want to check your wording before hitting 'send', our HR experts are here to help.