Do Fixed-Term Employees Get Paid Sick Leave?

Fixed-term employees in Australia generally receive paid personal or sick leave when they are employed full-time or part-time under the national workplace relations system. The fact that their contract has an end date does not remove the National Employment Standards entitlement.

A fixed-term casual employee is different. Casuals do not accrue paid personal or carer's leave under the federal minimum, even when a roster or engagement is expected to last for a defined period.

Eligible fixed-term employees accrue leave progressively during employment, can use it for qualifying illness or injury, and must follow notice and evidence rules. Unused personal leave is generally not paid out when the contract ends.

This article focuses on fixed-term status. For the minimum entitlement, read Sick Leave Entitlements in Australia.

This is general workplace information, not legal advice. Employment status, continuity, enterprise agreements, public-sector rules and fixed-term exceptions can change the result.

Key Points

• Full-time fixed-term employees generally accrue paid personal leave.
• Part-time fixed-term employees accrue it proportionately.
• Fixed-term casuals do not receive paid personal leave under the federal minimum.
• Leave accrues progressively from the first day.
• Probation does not postpone accrual or qualifying use.
• Notice and reasonable evidence can be required.
• Unused personal leave is not normally paid when the contract ends.
• Continuous renewal can affect service and carried balances.

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Fixed-Term Describes Duration, Not Leave Status

A fixed-term contract specifies an identifiable end date, period or completion point. It does not by itself determine whether the employee is full-time, part-time or casual.

Leave entitlement follows employment status and ordinary hours. A full-time employee on a six-month fixed term generally accrues the same rate as a permanent full-time employee across those six months.

The Fair Work Ombudsman fixed-term employee guidance explains contract limitations and employment conditions.

Read the contract's status, hours and applicable award rather than assuming “temporary” means casual.

Full-Time Fixed-Term Employees

A full-time employee accrues 10 days of paid personal or carer's leave for each year of service under the National Employment Standards, based on ordinary hours.

A six-month employee does not necessarily receive an immediate five-day block. Accrual occurs progressively according to ordinary hours unless a more generous arrangement credits leave upfront.

They can use accrued leave for personal illness or injury that makes them unfit, or qualifying care and support for immediate family or household members.

The contract end date does not stop genuine use while employment continues.

Part-Time Fixed-Term Employees

Part-time employees accrue personal leave proportionately based on their ordinary hours. The balance is best understood in hours rather than assuming every “day” has the same length.

If a part-time employee ordinarily works a six-hour shift and is unfit for it, the absence is generally deducted according to the ordinary hours missed.

Changes to regular hours can affect future accrual. Payroll should not calculate leave from ad hoc overtime or casual additional hours without checking the governing rules.

See How Much Sick Leave Do Part-Time Employees Get in Australia?.

Fixed-Term Casual Employees

A casual employee generally receives a casual loading or specific casual rate instead of several paid entitlements, including paid personal leave and annual leave.

Being promised work for a project or season does not automatically make someone casual; the actual legal status depends on the employment relationship and current statutory test.

If the worker is correctly classified as casual, they can still have unpaid carer's leave, compassionate leave and paid family and domestic violence leave when conditions are met.

Read Do Casual Employees Get Paid Sick Leave?.

Accrual Starts on Day One

Eligible paid personal leave begins accruing from the start of employment. It is not delayed until probation ends or until a minimum service period is completed.

A newly hired fixed-term employee can take the amount already accrued if a qualifying illness or injury occurs. If the absence exceeds the balance, part may be unpaid or covered by another agreed leave type.

An employer may provide a better upfront entitlement, but should explain whether the payroll balance is accrued, advanced or credited under policy.

For borrowing leave, see Can You Take Personal Leave in Advance?.

Notice and Evidence

Fixed-term employees must notify the employer as soon as practicable that leave is being taken and state the period or expected period.

The employer can request evidence that would satisfy a reasonable person, including for one day or less. The contract's limited duration does not lower that evidence test.

The Fair Work Ombudsman notice and certificate guidance applies to eligible fixed-term employees like other employees.

See Sick Leave Notice vs Evidence: What Is the Difference?.

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What Happens When the Balance Runs Out?

The employee can ask to use annual leave, take unpaid leave, use time off in lieu or make another arrangement. Annual leave timing requires agreement and unpaid sick leave is not an unlimited general NES balance.

A medical certificate can support incapacity but does not create more paid hours. The employer should record the unpaid or alternative leave accurately.

Workers compensation or income protection may apply for eligible conditions, subject to separate requirements and waiting periods.

The employee should communicate likely duration early because the contract may end during recovery.

Does Leave Extend the Contract End Date?

Paid or unpaid sickness near the scheduled end does not ordinarily extend a genuine fixed-term contract beyond its agreed expiry. Employment and paid personal leave generally end on the contract date.

A certificate covering dates after expiry does not require the former employer to pay personal leave after the relationship ends.

However, whether the contract genuinely expired, was terminated early or was part of prohibited successive terms can involve legal questions.

Employees should seek advice if illness appears to have influenced a non-renewal contrary to discrimination or general protections law.

Unused Leave at Contract End

Unused paid personal or carer's leave is generally not paid out when employment ends, including expiry of a fixed term. Annual leave is treated differently and is ordinarily paid out.

The Fair Work Ombudsman final pay guidance lists the common termination components and explains that sick and carer's leave is not paid out.

An enterprise agreement or contract can provide a more beneficial personal leave payout, so check the governing term.

Read Does Personal Leave Get Paid Out When Employment Ends?.

Renewals and Continuous Service

Where one fixed-term contract is renewed immediately and employment continues without a break, service and accrued leave may continue rather than resetting. The exact documents and legal continuity matter.

An employer should not automatically erase accrued personal leave whenever it issues a new contract document for continuing employment.

A genuine break and later re-employment may be different. Transfer-of-business and public-sector rules can also preserve service.

Ask payroll in writing how prior service and balances will be recognised before signing a renewal.

Fixed-Term Contract Limitations

Federal rules restrict the use of many fixed-term contracts beyond two years or across repeated renewals, subject to detailed exceptions. Employers must also provide the Fixed Term Contract Information Statement.

Those limitations do not replace leave rights. An invalid or prohibited fixed-term arrangement can affect whether an end date operates as expected.

The current Fair Work fixed-term contract fact sheet explains the limitations and exceptions.

Seek advice for successive contracts, high-income exceptions, funded projects or alleged early termination.

Illness During Probation

Probation affects how an employer assesses suitability but does not suspend minimum leave accrual. An eligible employee can take accrued personal leave for genuine incapacity.

The employer can enforce notice, evidence and reasonable attendance procedures. It should not treat use of a workplace right as misconduct.

Unfair dismissal eligibility may require a minimum employment period, while general protections and discrimination laws can apply differently.

Keep certificates, absence messages and performance communications if concerns overlap.

Work-Related Injury

A fixed-term employee can be covered by the relevant workers compensation scheme if injured at work. Scheme benefits and employer duties are separate from accrued personal leave.

Report the injury promptly, use the jurisdiction's certificate of capacity and follow claim requirements. Do not rely only on a generic sick leave certificate.

The contract may still reach its scheduled end while a compensation claim continues, but benefit and return-to-work consequences depend on scheme law.

Obtain insurer or legal advice rather than assuming the end date closes the claim.

Pay Rate During Sick Leave

Paid personal leave is generally paid at the employee's base rate for ordinary hours they would have worked, excluding separate overtime, bonuses, loadings and allowances unless an instrument provides more.

A fixed-term loading, project allowance or annualised salary arrangement may require careful payroll interpretation.

Check the payslip to ensure correct ordinary hours were paid and deducted. Raise discrepancies before the contract ends.

The Fair Work Act 2009 contains the National Employment Standards payment framework.

Working for More Than One Employer

A fixed-term employee may hold another job at the same time. Personal leave accrues separately in each employment relationship according to status and ordinary hours.

Being unfit for one job does not always mean being unfit for every job. A physical injury may prevent warehouse duties while allowing desk work, although the employee should follow medical restrictions and avoid conduct inconsistent with the certificate.

Each employer can require its own notice and reasonable evidence. A certificate may need to identify the relevant work or limitations clearly enough to avoid misunderstanding.

Leave cannot be transferred between unrelated employers, and an unused balance from one contract does not fund absence in another role.

Seasonal and Project Roles

A seasonal or project-based label does not decide entitlement. Confirm whether the worker is full-time, part-time or casual and whether the contract ends on a date or completion of an identifiable task.

Busy periods do not remove the right to use accrued personal leave for genuine incapacity. The employee must still give prompt notice so the employer can reorganise time-sensitive work.

A project deadline also does not authorise payroll to erase unused leave before employment actually ends. Accrual and use continue under the applicable status until termination.

Practical Checklist

• Confirm whether the role is full-time, part-time or casual.
• Check ordinary hours and the accrued balance.
• Notify the employer as soon as practicable.
• Provide reasonable evidence when requested.
• Ask how a renewal affects service and leave.
• Review final pay and annual leave separately.
• Seek advice about early termination or repeated terms.

For leave records and rollover, see Does Sick Leave Roll Over Each Year?.

More of Our Services

Using Dociva

Dociva currently provides online request pathways for sick-leave, carer's leave, study and multi-day medical certificates. An eligible fixed-term employee may submit any clinically supported certificate through the same workplace evidence process as another employee.

Dociva does not determine employment status, leave balances, contract validity or final pay. A certificate is not guaranteed and cannot extend a contract end date.

The practitioner does not backdate the issue date and may recommend in-person or urgent care. The employer decides whether evidence meets reasonable requirements.

For a current need in a supported category, use the medical certificate application and notify the employer separately.

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