Managing long-term sickness absence in Australia
Reviewed by Mellow Editorial Team, HR & payroll content team
Long-term sickness absence has no single legal definition in Australia, but it is generally understood as an absence lasting more than a few weeks due to illness or injury. How you manage it matters — both for the employee's recovery and for your legal obligations as an employer.
What the law actually requires
Australia's workplace laws set a floor, not a ceiling, for how you treat employees who are unwell.
The Fair Work Act gives employees protection from dismissal while they are on a period of personal/carer's leave. More specifically, an employer cannot dismiss an employee who is temporarily absent due to illness or injury if that absence is covered by a medical certificate or statutory declaration. This protection applies during what is commonly called the "protected period" of absence.
The National Employment Standards (NES) provide full-time employees with 10 days of paid personal/carer's leave per year, which accrues progressively. Once paid leave is exhausted, an employee may take unpaid leave. Long-term absences often extend well beyond the paid entitlement, and managing the unpaid portion requires more deliberate communication.
Importantly, the protection from dismissal is not indefinite. Once an employee has been absent for three months on a single continuous absence, or a total of three months in any 12-month period (paid or unpaid), the protected period ends. At that point, dismissal may be lawful — but it still must not be harsh, unjust or unreasonable, and it must comply with your obligations under any applicable Modern Award or enterprise agreement.
This is general information, not legal advice. For specific situations, seek advice from a qualified employment lawyer or contact the Fair Work Ombudsman.
Your obligations around medical evidence
You can, and should, request medical certificates for absences of any reasonable length. For a long-term absence, a single certificate from the outset is rarely sufficient. It is reasonable to ask for updated medical evidence at intervals — for example, every four to six weeks — to understand the employee's prognosis and likely return-to-work date.
A certificate confirming an employee is unfit for work is not the same as a detailed medical report. If you need more information to plan operationally — whether the employee can return to modified duties, for instance — you can ask the employee to consent to a report from their treating doctor or an independent medical examination (IME). You cannot compel this without consent, but a refusal to engage reasonably can be relevant to subsequent decisions about the employment.
Be clear and consistent in your requests. Document everything in writing.
Staying connected without overstepping
Regular, respectful contact during a long-term absence is in everyone's interest. It keeps the employee informed of any workplace changes, signals that their role still matters, and helps you plan.
A good approach is to agree on a communication cadence early — say, a check-in call or email every two to four weeks. Keep the tone supportive rather than transactional. Focus on wellbeing, not pressure to return. Avoid making the employee feel that their job is under threat unless you have genuinely reached the point where a formal process is necessary.
Some employers offer access to an Employee Assistance Programme (EAP), which provides confidential counselling. If you have one, remind the employee it is available — and make sure your managers know not to inadvertently discourage its use.
Planning for return to work
Where a return is possible, a phased or graduated return to work is often more effective than expecting someone to go from zero to full-time overnight. This might mean reduced hours, modified duties, a temporary change in role, or working from home during a transitional period.
Any return-to-work arrangement should be documented, with clear timeframes for review. If an employee requires permanent adjustments due to a disability, you have a duty to make reasonable adjustments under the Disability Discrimination Act 1992. What is "reasonable" depends on factors including the size of your business and the operational impact of the adjustment.
Where a return to work is not feasible — the employee's condition is not improving and there is no realistic prospect of them performing their role — you may need to consider ending the employment. This is a significant step and the process matters as much as the outcome. You need to give the employee a genuine opportunity to respond before a decision is made.
Payroll considerations during extended absence
Once paid personal leave is exhausted, you are generally not required to pay the employee for the absence unless your employment contract, award or enterprise agreement says otherwise. However, super obligations continue to apply to any ordinary time earnings actually paid. PAYG withholding applies in the normal way to any payments made.
If the employee is receiving income protection insurance payments during the absence, clarify with your insurer whether those payments are made through your payroll or directly to the employee, as the tax treatment differs.
Keep your payroll records current throughout the absence. When the employee does return, ensure leave balances, tax file number details and superannuation contributions resume correctly from the first pay event, reported through Single Touch Payroll as normal.
---
Run HR and payroll in Australia with Mellow
Mellow brings HR, payroll and 12 AI agents into one platform — built to handle Australia properly, with payroll included, from £4 per employee per month. The AI agents don't just answer questions; they generate contracts, run cost estimates and draft letters for you.
[Start a free trial →](/register)