Home - What happens if an employee is sick while they are on annual leave?
January 19, 2011

What happens if an employee is on annual leave but they or a member of their family get sick while they are on that leave? Do I have to change their leave from annual leave to personal/carer’s leave?

Yes. Section 89(2) of the Fair Work Act states that if the period during which an employee takes paid annual leave includes a period of any other leave (i.e. sick leave), the employee is not taken to be on paid annual leave for the period of that other leave or absence.

Therefore, you must re-credit the employee with annual leave for the duration of the illness and deduct the equivalent sum from their sick leave balance.

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