What’s the deal with personal leave?

The Business Advice Hotline frequently gets queries on how and when to pay personal leave. Below is a quick guide on personal/carer’s leave.

1. When can an employee take personal/carer’s leave?

Under the Fair Work Act 2009, an employee is only entitled to take personal/carer’s leave:

• If they are not fit for work because of personal illness or injury 
• To provide care or support to a member of their immediate family, or a member of their household, who requires care or support because of:

• illness or injury; or

• an unexpected emergency.

It is not to be used as a general ​“I can’t attend work” or ​“I’ve got an appointment” entitlement. 

2. How do you pay for personal/carer’s leave?

It must be paid at the employee’s base rate of pay, and only for the ordinary hours they were rostered to work during the absence.

That means:

• Pay only ordinary hours, not overtime.
• Pay at base rate only — not including incentives, allowances, penalties, loadings or overtime rates.

If an employee is rostered to work 7.6 ordinary hours on the day they are sick, they are paid for 7.6 hours.

Personal/carer’s leave is not payable for overtime hours.

Stop thinking of leave in ​“days”

Personal leave is accrued and taken in hours, not days. The length of a person’s ordinary hours during their absence is what matters.

A common error:

• An employee works their 38 ordinary hours over 4 days per week 
• They accrue 10 ​“days” of personal leave per year 
• They are absent for one full day (9.5 ordinary hours)
• But the employer deducts and pays for 7.6 ordinary hours because it represents one ​“day” of their ten ​“days” of personal/carer’s leave. 

What should actually happen? The employee must be paid and deducted 9.5 hours of personal leave.

Notice and evidence: what can you ask for?

Employees must notify you of their absence as soon as practicable, which can be after the leave has started. They must also advise how long they expect to be absent.

You can require evidence that would satisfy a reasonable person that the leave is being taken lawfully. What counts as reasonable depends on the circumstances. In practice, reasonable evidence for personal leave may include:

• a medical certificate
• a statutory declaration (including digital)

Evidence for carer’s leave should relate to the immediate family member or household member who needs care and will usually come from that person’s treating practitioner.

For unexpected emergencies (for example, school incidents), reasonable evidence may include:

• a letter or email from the school, or
• other credible confirmation of the emergency.

Always check your internal policies, as many businesses often set out notice and evidence requirements that are more generous than the minimum legal standard.

Practical steps for businesses

• Clarify ordinary hours: Ensure rosters and contracts clearly identify what is ordinary versus overtime hours.
• Check payroll settings: Payroll systems should deduct and pay personal leave by hours, not ​“days”.
• Review leave policies: Policies should clearly explain notice requirements and acceptable evidence.
• Apply rules consistently: Inconsistent treatment is a common trigger for disputes.

If you need help reviewing your leave policies, understanding ordinary hours, or dealing with a leave‑related dispute, contact the SA Business Chamber Business Advice Hotline on (08) 8300 0106 for practical support.