Sick Leave: Employer Obligations Guide

TL;DR: Employers in most countries must provide paid sick leave — entitlements vary from statutory sick pay in the UK (employer-funded up to a ceiling) to 10 days' mandatory paid sick leave in Australia. Getting documentation and process right protects your business and supports your employees.

What You Need to Know

Managing employee absence due to illness is one of the most practically challenging aspects of employment. Employers must navigate statutory sick pay obligations, documentation requirements, return-to-work processes, and the risk of disability discrimination if absence becomes prolonged. In all seven jurisdictions covered by this guide, the law sets a floor below which sick leave provision cannot fall.

The major issues for employers are: how much paid sick leave employees are entitled to, who bears the cost, what documentation can be required, and how long absence can continue before capability dismissal becomes a consideration. Across countries, the answers differ significantly — but the underlying principle of protecting workers' health and income during illness is universal.

Understanding your obligations before an employee calls in sick — not after — is the mark of a well-prepared employer.

How It Works: A Practical Overview

Statutory Sick Pay and Entitlements

Sick leave entitlements take different forms in different countries:

Employer-funded sick pay: In the UK, Statutory Sick Pay (SSP) is paid by the employer (though it was historically recoverable from the government for small employers — this scheme is no longer broadly available). SSP is a flat weekly rate (£116.75/week in 2024/25) paid from the fourth consecutive day of absence.

State-funded sick pay: In Sweden, sick pay is funded primarily through the social insurance system (Försäkringskassan) after an employer-paid first day. France operates a similar model with social security (CPAM) covering the bulk of sick pay after a waiting period.

Employer-mandated accrued leave: In Australia and New Zealand, employees accrue a fixed entitlement to paid personal/carer's leave annually (10 days/year in Australia under the National Employment Standards). This is paid at the employee's ordinary rate.

At-will or market-driven: In the United States, there is no federal mandatory paid sick leave law, though several states and cities have enacted their own requirements. Many US employers offer sick leave as a benefit to remain competitive.

Waiting Days and Qualifying Periods

Most jurisdictions impose a "waiting period" — days at the start of sickness absence for which no pay is due:

• UK: SSP is not paid for the first three days of absence (called "waiting days")
• France: A three-day carence (waiting period) before social security payments begin (though many collective agreements eliminate this)
• Sweden: The first day (karensdag) is not compensated under the social insurance system
• Australia/NZ: No waiting period — accrued entitlement is available from day one

Medical Certificates and Documentation

Employers have the right to require evidence of illness, but this must be proportionate and comply with data protection rules:

• In the UK, employees can self-certify for the first seven days. After that, a "fit note" from a GP is required
• In Australia, employees must provide a medical certificate or statutory declaration for single-day absences if the employer requests it
• In France, employees must send a medical certificate within 48 hours
• In most jurisdictions, you cannot require a medical certificate for every single day of absence as a blanket policy — it must be proportionate

Medical certificates contain sensitive health information. Store them securely, limit access, and do not retain them longer than necessary under GDPR and equivalent laws.

Long-Term Absence and Disability

When absence extends beyond a few weeks, additional considerations apply. In most jurisdictions:

• The employer's duty to make reasonable adjustments for a disabled employee may arise
• Capability dismissal becomes a possibility only after a fair process — including occupational health assessment, consideration of adjustments, and adequate consultation
• Dismissing an employee who is on long-term sick leave without following a proper process is almost always an unfair dismissal claim waiting to happen

Country-by-Country Comparison

Common Mistakes to Avoid

1. Not having a written sick leave policy. A clear, written policy prevents disputes, sets expectations, and demonstrates procedural fairness. Your policy should cover notification procedures, documentation requirements, pay during absence, and the process for managing long-term absence.
2. Dismissing an employee who is on sick leave without following a fair process. Capability dismissal during sickness absence requires: obtaining medical evidence, considering reasonable adjustments, consulting with the employee, and following a formal capability procedure. Skipping steps exposes you to unfair dismissal and disability discrimination claims.
3. Conflating sick leave and annual leave. In the UK, EU, and Australia, employees continue to accrue annual leave during sick leave. If employment ends while an employee is on long-term sick leave, you may owe significant accrued holiday pay. Track this separately.
4. Requiring a medical certificate for every absence. While employers can require evidence, demanding a certificate for every single absence — especially when the employee returns quickly — can be seen as punitive or a manifestation of disability discrimination if the pattern of absence is related to a disability.
5. Not adjusting sick pay for employees with disabilities. In the UK, disability discrimination law may require employers to make adjustments to their sick pay policy if a disabled employee's absences are related to their disability. Blanket application of "after X days, no pay" rules can constitute indirect disability discrimination.

Next Steps: Get Started Today

Prepare your sick leave documentation and policies using our tools:

• Employment Checker — verify sick leave obligations by jurisdiction
• Filing Deadlines — track SSP records and payroll submission deadlines
• Cost Calculator — model your sick pay liability and budgeting

MmowW Scrib🐮 is a document preparation service, not a law firm. We do not provide legal advice. For advice specific to your situation, consult a qualified employment solicitor or attorney.

Frequently Asked Questions

Q: Can I contact an employee while they are on sick leave?

A: You can maintain reasonable contact to check on wellbeing, discuss adjustments, and plan for their return. However, excessive contact that causes stress or pressure to return prematurely can amount to harassment or constructive dismissal. A brief, empathetic check-in call is generally appropriate; multiple daily messages are not.

Q: Can I ask what illness the employee has?

A: You can ask, but employees are not legally obliged to disclose their diagnosis in most jurisdictions. You can ask for a medical certificate confirming they are unfit for work. If you need more detail to consider reasonable adjustments, you should seek the employee's consent to obtain an occupational health report or GP report under relevant data protection rules.

Q: What is the "Bradford Factor" and can I use it?

A: The Bradford Factor is a formula used to measure the impact of short, frequent absences on the business. It is a management tool, not a legal standard. Using it as an automatic trigger for disciplinary action — rather than as one input among many — can be problematic, particularly where absences are disability-related. Any absence management policy should include a consideration of the reasons for absence before taking action.

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