In Australia, paid personal/carer’s leave (also known as sick leave and carer’s leave) is an important employee entitlement. Personal/carer’s leave enables permanent employees to take time off work when they are unwell or need to care for a family member without having to worry about losing income. However, what happens when an employee runs out of paid sick leave?
Firstly, it’s important to understand that paid personal/carer’s leave is an entitlement in accordance with the National Employment Standards (NES).
Full-time employees are entitled to 10 days of paid sick leave per year, and part-time employees are entitled to a pro-rata amount based on their contracted hours. This paid personal/carer’s leave accumulates from the first day of employment for a permanent employee, so employees can accrue personal/carer’s leave to use when they need it, either when they are sick or injured or they need to care for a family member. Personal/carer’s leave rolls over each year, so for example, if a full time permanent employee has 5 years’ service and has never taken personal/carer’s leave they will have a balance of 50 days.
If an employee runs out of paid personal/carer’s leave, they need to take unpaid personal carer’s leave. This means that the employee would not receive their normal pay while they are on leave. Alternatively, if the employee has exhausted all their leave entitlements and they are unable to work, they may be able to apply to use their annual leave entitlements. This is not automatic, and an employer shouldn’t assume that an employee wants to use their annual leave without asking the employee first.
In conclusion, running out of paid personal/carer’s leave can be a stressful and challenging situation for employees. As an employer it’s important to understand how to manage when an employee runs out of personal/carer’s leave.
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