Paying Out Or Accruing Sick Leave

By ACIRRT

Employers are increasingly looking at he option of paying out unused sick leave to maximise on-the-job productivity and continuity.

It is rare in awards but is a feature of many enterprise agreements where it is generally provided to employees as an option. Issues that need to be determined in paying out sick leave include:

· who is eligible

· whether the payment is made annually or at different payment periods over the year

· the number of unused days that can be paid out

· the group of employees entitled

· whether it is paid at a variety of rates based on attendance

AN analysis of the ADAM database shows 36% of agreements relating to accumulating sick leave but 14% have a pay out provision. However it does seem to be increasing and is more likely in union based agreements and more likely in the private sector than the public sector.

(ADAM Report. no. 37, June 2003)