Should Australian workers be allowed to cash in their sick leave?

WORKERS can now cash out their annual leave. But what about sick leave? If you never take a sickie, you need to read this.

THE news this month that Australian employees would now be able to cash out their annual leave prompted celebration among those eager to boost their bank balances.

But it also prompted the question: Why can’t we cash in our sick leave?

About two million workers can now cash out some of their excess annual leave, provided they still have four weeks’ worth left over.

For those conscientious employees who brag that they “never take sick days”, it may seem unfair that they’re putting in a full year’s work, while their illness-prone— and sometimes dishonest— colleagues get 10 days of paid leave to binge-watch Netflix, catch up on housework or take sneaky long weekends.

News.com.au readers took to Facebook to call for leave cash-outs to be extended to include unused sick days, especially for those who have “thousands of hours” accrued.

“I think there should be an incentive for those who have an excess amount of sick days,” Simone Gleeson wrote.

“Either when you reach a certain amount you get the hours paid to you, or you take extra annual leave days.”

WHERE EMPLOYEES STAND

All those extra dollars are way more enticing than sitting at home on the couch, but what’s the pay-off?

Sick leave, officially known as personal and carer’s leave, accumulates from the day an employee starts working, including when they are on paid leave.

Its purpose is to provide a safety net for employees, allowing them to take time off when they or family members are sick.

If it is not used up by the end of the year, sick leave rolls over and accumulates just like annual leave, so those workers blessed with strong immune systems can accrue large balances.

Cashing out sick leave is not actually illegal, but it can only be done if the employee requests it in writing, and if the enterprise agreement covering their employment allows it.

At present, there are only three awards that allow sick and carer’s leave to be cashed out — the Timber Award, the Black Coal Award and the Stevedoring Award.

So if you’re not a coal miner, wharfie or timber worker, you won’t be able to turn your sick days into cash. For those who do work in these industries, sick leave can be cashed out as long as the worker is left with at least 15 sick days.

‘IT’S NOT A COMMODITY’

The prospect of rewarding workers who eschew the Australian tradition of “chucking a sickie” has an obvious appeal.

But there’s a reason why cashing in personal and carer’s leave might not be a good idea.

“While it might seem like your sick leave is needlessly accumulating and it’s tempting to try and exchange it for additional income, you never know when you or a family member will fall ill or suffer an accident,” ACTU Secretary Dave Oliver said.

“It’s a bit like deciding to cancel your car insurance because you haven’t had an accident for a few years, but then running into a Mercedes.

“Sick leave is a basic but critically important workplace right designed to maintain the health and wellbeing of the workforce — it shouldn’t be a commodity to be traded off.”

There’s also the fact that soldiering on in the hopes of a cash payout could lead to more sick and underperforming staff coming into work and spreading their germs.

Even the Australian Chamber of Commerce and Industry is hesitant to push for extending the cash-out rules to include sick leave.

Chief executive James Pearson said that while bosses and employees “should be able to negotiate arrangements that best meet their needs” and some employees “may wish to cash out their sick leave”, it served as an important safety net for workers.

“Even if employees are able to [cash out their sick leave], they should carefully consider the implications,” Mr Pearson said.

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