Sample Sick Leave Policy

Sample_Documents

DISCLAIMER: This is a sample template provided for informational purposes only. It does not constitute legal, tax, or financial advice. Organizations should consult their own legal and tax advisors and tailor this document to reflect their specific business needs, geographies, and applicable laws.

Document Header

Document Title	Document Type	Category	Version	Effective Date	Next Scheduled Review	Policy Owner	Approver(s)	Supersedes
Sick Leave Policy	Sick Leave Policy	Benefits & Wellness	v<Version Number>	<Date>	<Date> (Annual or Biennial Review)	<Company Name> Total Rewards	<Executive Sponsor/CHRO/Regional HR Leader>	v<Prior Version Number> dated <Date>

Geography Scope	Employee Groups	Systems of Record	Confidentiality Level
<Country>, <Region/State/Province> with local addenda as required	Regular full-time and part-time; temporary/seasonal as specified; union-represented as per CBA	<HRIS/Vendor Name>, <Timekeeping System>, <Payroll Provider>	Internal Use – Policy

Purpose and Objectives

The purpose of this Sick Leave Policy is to provide eligible employees of <Company Name> with paid or job-protected time away from work to address their own health needs or those of covered family members, without fear of reprisal and in compliance with applicable laws. This policy aims to:

Support employee health, well-being, and safety while maintaining business continuity
Provide a consistent framework for accrual, use, documentation, and administration
Align with statutory sick leave requirements in <Country> and local jurisdictions
Integrate with disability, family leave, and paid time off programs to avoid duplication or gaps
Establish governance, roles, and controls for accurate, compliant, and equitable administration

Policy Statement

<Company Name> provides sick leave to eligible employees for qualifying health-related reasons. Where laws mandate more generous benefits, <Company Name> will comply with and, where feasible, harmonize to a global minimum standard with local supplements. Retaliation against employees for using or requesting sick leave is strictly prohibited. Reasonable accommodations and confidentiality of medical information will be maintained consistent with applicable law.

Scope and Applicability

In Scope

All regular employees of <Company Name> in <Country> and its subsidiaries, including those in <State/Province> jurisdictions with separate sick leave mandates
Contingent, temporary, seasonal, and intern workers only where required by law or as specified in an addendum
Union-represented employees where the applicable collective bargaining agreement (CBA) incorporates this policy or provides a comparable benefit
Remote and hybrid workers, whose applicable jurisdiction is determined by their work location as defined by <Company Name> HR records

Out of Scope

Independent contractors, agency workers, and vendors engaged by <Company Name> who are not employees
Leaves governed exclusively by separate policies (for example, Paid Parental Leave, Bereavement, Jury Duty), except where expressly coordinated herein

Applicability Rules

Where local law requires a more generous sick leave, the local requirement prevails for employees in that jurisdiction
Where a CBA stipulates different sick leave terms, the CBA governs for covered employees
For cross-border assignments, applicability is determined per the expatriate assignment letter and host/home country legal requirements

Key Principles

Equity and Compliance ensures consistent administration with lawful variations
Simplicity favors clear accrual and usage rules that employees can understand
Integration aligns sick leave with Short-Term Disability (STD), Family and Medical Leave or local equivalents, and PTO
Data Privacy safeguards medical information and limits access on a need-to-know basis
Fiscal Stewardship balances employee support with responsible financial management

Eligibility

Standard Eligibility

Regular full-time employees: eligible for paid sick leave beginning on the date of hire or after a waiting period of <Number> days, as applicable
Regular part-time employees: eligible on a prorated basis based on scheduled hours
Temporary/seasonal employees: eligible where required by law, generally accruing based on hours worked
Interns and apprentices: eligible if mandated locally; refer to local addendum

Waiting Periods and Probationary Periods

Waiting periods may apply only to the use of sick leave, not the accrual, where required by law
No waiting period will apply to leave used for public health emergencies if prohibited by law

Covered Family Members

Sick leave may be used to care for a covered family member, including spouse/domestic partner, child, parent, sibling, grandparent, grandchild, or as defined by applicable law in <State/Province> or by company definition outlined in the local addendum.

Accrual and Entitlement

Standard Accrual Method

Hourly accrual rate: 1 hour of sick leave for every 30 hours worked, unless local law requires a different ratio
Annual accrual cap: <Number> hours (for example, 40, 56, or 72), subject to local legal minimums
Carryover: Unused hours may carry over up to <Number> hours per year, with an annual usage cap of <Number> hours, consistent with law
Exempt employees: treated as working 40 hours per week for accrual purposes unless their regular workweek is less

Accrual Example

Example A: An hourly employee in <State> works 1,560 hours in a year. At 1 per 30 hours, accrual = 52 hours. If the local cap is 56 hours, the employee may continue accruing until the cap; usage may be capped at <Number> hours per year per local law.
Example B: A part-time employee scheduled 20 hours/week earns approximately 34.7 hours of sick leave annually at the 1:30 ratio.

Frontloading Option

For administrative simplicity, <Company Name> may frontload sick leave on the first day of the plan year:

Frontload amount: <Number> hours (for example, 40 or 56) on <Date>
Employees hired midyear receive a prorated frontload: <Percentage> of annual hours based on months remaining in the plan year
Frontloading may eliminate tracking of carryover where lawful, but employees will never receive less than the statutory minimum

Carryover and Annual Caps

Where carryover is required, unused hours carry over up to <Number> hours into the next plan year
Annual usage may be capped at <Number> hours per year if permitted by law
Banking beyond caps is not permitted unless required by law or granted as an accommodation

Payout at Separation

Sick leave is not cashed out at separation unless required by law or if sick leave is integrated with a PTO program subject to payout rules
If rehired within <Number> months, previously accrued unused sick leave will be reinstated if required by law and if the break in service is within statutory thresholds

Minimum Usage Increments

The minimum increment for use is 1 hour unless local law allows a larger increment and business needs justify it
Salaried exempt employees may use sick leave in half-day increments where allowed, but not in a manner that violates salary basis rules

Qualifying Reasons for Use

The employee’s own illness, injury, or medical diagnosis, care, or treatment (including preventive care)
Care of a covered family member for illness, injury, diagnosis, care, or treatment (including preventive care)
Closure of the workplace or child’s school/place of care due to a public health emergency
Seeking medical attention, relocation, or legal services resulting from domestic violence, sexual assault, or stalking where protected by law
Quarantine or isolation due to exposure or orders from a public health authority

Scheduling, Notice, and Documentation

Advance Notice

If the need for leave is foreseeable, provide at least <Number> days’ notice to your manager and record the planned absence in <Timekeeping System>
If not foreseeable, notify as soon as practicable via <Notification Method> following local call-in requirements

Call-In Procedures

Contact your manager or designated contact by <Time> local time on the day of absence
Record the absence in <Timekeeping System> using the correct sick leave code
Provide expected return-to-work date if known
Update your manager if the absence extends beyond the initial estimate

Documentation Requirements

Documentation may be required for absences of <Number> or more consecutive workdays, or when required by law
Documentation may include a note from a licensed health care provider confirming the general need for leave and the expected duration; diagnosis details should not be requested
For domestic violence or similar leave, acceptable documentation may include a police report, protective order, or a statement from a victim services organization, as permitted by law
<Company Name> will not require employees to disclose underlying medical conditions beyond what is necessary for administration and will store documentation securely

Pay Treatment and Benefits Continuation

Sick leave is paid at the employee’s regular rate of pay as defined by applicable law, inclusive of nondiscretionary differentials where required
Overtime is not paid for sick leave hours
Benefits (such as medical, dental, vision, life insurance) continue per normal eligibility rules while on paid sick leave
Pension or retirement contributions continue in accordance with plan terms for paid hours

Interaction with Other Leave and Benefits

Short-Term Disability (STD) and Long-Term Disability (LTD)

Sick leave typically covers short-duration absences; for absences exceeding <Number> days, employees may be required or permitted to apply for STD
Sick leave may be used to cover waiting periods for STD, where permitted by plan design and local law
Coordination rules:
- If STD is approved, pay integration may result in sick leave topping up benefits to 100% of base pay where permitted
- If STD is denied, sick leave may continue subject to eligibility and documentation

Family and Medical Leave (FMLA or Local Equivalent)

Where applicable, eligible employees may have qualifying absences designated as job-protected under FMLA or local equivalents
Sick leave is paid time and may be used concurrently with FMLA where allowed
Job protection arises from the leave law, not the sick leave pay itself

Workers’ Compensation

Work-related injuries are generally covered by workers’ compensation
Sick leave may supplement wage replacement to 100% where allowed and upon employee election

Paid Time Off (PTO) and Vacation Integration

If <Company Name> operates a combined PTO bank, local sick leave mandates may require a protected portion of PTO to be designated as sick time
If separate banks exist, sick leave should be used first for qualifying reasons to preserve vacation/PTO for planned time off, subject to employee preference and legal constraints

Public Health Emergencies and Contagious Illness Protocols

During declared public health emergencies, expanded uses and pay may apply under local law or company directive
Employees are expected to follow isolation, testing, and return-to-work guidelines issued by <Company Name> Health & Safety and local public health authorities

Local Jurisdictional Variations

Where a jurisdiction imposes different rules (for example, accrual rate, covered reasons, caps, carryover, frontloading), local addenda will apply. The following examples illustrate how variations may be documented:

Jurisdiction	Accrual/Frontload	Annual Cap	Carryover	Waiting Period	Notes
<State/Province A>	1:30 accrual or 40-hour frontload	40 hours	40 hours	90 days to use	Family care allowed; safe leave permitted
<City B>	1:30 accrual	56 hours (employer size > <Number>)	Unlimited carryover; usage cap 56	None	Includes public health closure of schools
<Country C>	Employer-paid sick days: first <Number> days at 100%, then statutory	Per law	Not applicable	None	Medical certificate required after day <Number>

Roles and Responsibilities

Employees

Use sick leave responsibly and only for qualifying reasons
Provide timely notice and documentation as required
Accurately record time in <Timekeeping System>
Maintain confidentiality of personal medical information and that of others

Managers

Review and approve sick leave requests timely and fairly
Maintain staffing plans to ensure coverage while supporting employee well-being
Refrain from requesting diagnosis details and route sensitive matters to HR
Escalate complex cases to HR or Leave Administration

Total Rewards and Leave Administration

Design, maintain, and periodically review the policy for compliance and competitiveness
Configure accruals and eligibility in <HRIS/Vendor Name>
Coordinate integration with STD, FMLA/local equivalents, and payroll processes
Monitor metrics, audit usage, and provide guidance to HRBPs and managers
Maintain jurisdictional addenda and update employees on changes

Payroll and HRIS

Ensure accurate accrual calculations, carryover, and balances
Integrate timekeeping entries with payroll to pay sick leave at the correct rate
Maintain records per retention requirements and support audits

Legal and Compliance

Monitor legal developments in <Country> and <State/Province>
Advise on local addenda and support policy updates and training
Oversee compliance risk assessments

Processes and Controls

Request and Approval Workflow

Employee notifies manager per call-in procedures
Employee enters sick leave request in <Timekeeping System> using the sick leave code
Manager reviews and approves or denies with reason, consistent with law and policy
For absences beyond <Number> days, HR or Leave Administration initiates STD/FMLA evaluation
Payroll processes sick leave hours at the appropriate pay rate
HRIS updates balances and carryover at the end of each pay period or month
If documentation is required, HR securely collects and stores it separately from personnel files

Controls and Audit Points

Monthly reconciliation of sick leave balances between <HRIS> and payroll
Quarterly sample audit of approvals to test compliance with documentation thresholds
Access controls limiting medical documentation to HR/Leave Administration
Exception reports for:
- Negative balances
- Accruals exceeding caps
- Usage patterns that may indicate policy misuse or accommodation needs
Annual policy review and sign-off by Total Rewards and Legal

Data Privacy and Security

Medical information is kept confidential and stored separately with restricted access
Data retention: <Number> years from the end of the calendar year in which the leave occurred, or longer if required by law
Employee rights to access records are respected in accordance with <Country> privacy laws

Implementation Guidelines for Total Rewards

Design Considerations

Determine whether to use frontloading, accrual, or a hybrid approach by jurisdiction
Set annual caps and carryover consistent with statutory minimums and market practices
Decide integration rules with PTO and STD to achieve target replacement ratios (for example, 100% for short absences up to <Number> days)
Establish a unified global minimum floor (for example, frontload 40 hours globally) with local addenda for more generous mandates

HRIS Configuration Rules

Plan Year: set to calendar year or fiscal year beginning <Date>
Accrual Frequency: per pay period with proration for hours worked; exempt employees accrue based on standard hours
Hire, Termination, and Rehire Events:
- New Hires: prorate frontload based on months remaining
- Terminations: no payout unless required; retain balance for rehired employees within <Number> months
- Rehires: reinstate balance and seniority rules per law
Caps and Carryover:
- Apply jurisdictional caps at the plan and employee level
- Enforce usage caps distinct from balance caps if required locally
Eligibility Groups:
- Configure by worker type, location, and union code
- Exception groups for interns or temporary roles where law differs

Payroll and Pay Rate Configuration

Set sick leave to pay at base hourly rate plus applicable nondiscretionary differentials
Exclude discretionary bonuses and overtime premiums from sick leave rate unless required by law
Validate taxation and reporting codes for sick leave pay in <Payroll Provider>

Timekeeping and Codes

Create standardized codes:
- SICK-EMP for employee’s own illness
- SICK-FAM for family care
- SICK-SAFE for domestic violence/safe leave
- SICK-PHE for public health emergency
Minimum increment set to 1 hour unless local law dictates otherwise
Require reason code only at the level permitted by law, not diagnosis details

Example Accrual and Carryover Scenarios

Scenario 1: Frontload 56 hours on <Date> in <City B>, no carryover required; usage cap 56
Scenario 2: Accrue 1:30 in <State/Province A>, max accrual 40, carryover 40, usage cap 40
Scenario 3: Global minimum frontload 40 hours where no local mandate; carryover optional per company design

Change Management and Training

Develop manager guides and decision trees for approving sick leave
Train HRBPs and payroll on documentation thresholds and privacy
Provide employees with quick-reference materials and FAQs
Translate materials into <Languages> for multilingual populations

Metrics and Reporting

Utilization rate: total sick hours used as a percentage of eligible hours worked
Average days to return from short-duration absences
Percentage of employees using at least <Number> hours annually
Incidence of absences converting to STD or FMLA
Denial rate and reasons (tracked without medical detail)
Compliance exceptions by location
Employee engagement or well-being indicators correlated with sick leave usage

Risk and Compliance Considerations

Legal risk from noncompliance with local mandates (accrual, carryover, permitted uses)
Salary basis risk for exempt employees if deductions are handled incorrectly
Privacy risk from mishandling medical information
Employee relations risk from inconsistent manager practices
Financial risk from inaccurate accrual accounting or payroll integration

Mitigations include robust system configuration, manager training, regular audits, and timely updates to jurisdictional addenda.

Governance, Review, and Approval

Policy Owner: <Company Name> Total Rewards
Executive Sponsor: <CHRO/Head of HR>
Review Cadence: Annually each <Month> or upon legal changes
Approval Path:

Total Rewards drafts revisions and coordinates with Legal and HR Operations
Legal reviews for compliance and jurisdictional accuracy
Finance reviews for cost impact if design changes exceed <Amount> annualized
Executive Sponsor approves final policy
Policy is published in the <Company Name> Policy Repository and communicated to employees

Recordkeeping and Retention

Retain sick leave records (balances, usage, approvals, documentation) for at least <Number> years, or longer where required by law
Maintain separation between personnel files and medical/confidential files
Provide employees access to their own balances upon request through <HRIS/Vendor Name>

Equity and Accessibility

Provide accommodations for individuals with disabilities in accessing or using sick leave
Communicate policy and procedures in accessible formats upon request
Ensure that policy administration does not disproportionately disadvantage any protected group; conduct periodic disparate impact reviews

Frequently Encountered Scenarios for Administrators

Patterned Absences

If patterns suggest misuse (for example, frequent Mondays), managers should consult HR. Any corrective action must comply with law and consider potential disability-related or caregiver obligations.

Partial-Day Absences for Exempt Employees

Follow local law and salary basis rules. Where allowed, track time in minimum increments without reducing base salary improperly.

School or Childcare Closure

Where permitted, sick leave may be used. Confirm local law definitions of “public health emergency.”

Concurrent Leaves

When FMLA/local job-protected leave applies, designate concurrently with sick pay to preserve both compliance and business continuity.

Change Log

Version	Effective Date	Summary of Changes	Author	Approver
v<Version Number>	<Date>	Initial release; established global minimum and local addenda	<Name/Title>	<Name/Title>
v<Version Number>	<Date>	Updated accrual caps and added safe leave provisions	<Name/Title>	<Name/Title>

Legal Disclaimers

This policy is not a contract of employment and does not create any contractual rights. <Company Name> reserves the right to modify, suspend, or terminate this policy at any time, subject to applicable laws and CBAs.
Where statutory requirements differ from this policy, the statutory requirements prevail for the affected employees.
Retaliation for using or requesting sick leave is prohibited. Employees who believe they have experienced retaliation should report it to <Reporting Channel>.

Glossary

Accrual: The rate and method by which sick leave hours are earned over time
Carryover: Unused sick leave hours that move from one plan year to the next
Covered Family Member: Relationship categories defined by law or company policy eligible for care-related sick leave
Exempt Employee: Employee exempt from overtime under applicable wage and hour laws
Frontloading: Granting a full-year sick leave balance at the start of the plan year
HRIS: Human Resources Information System used to track eligibility, accruals, and balances
Pay Rate: Regular rate of pay used for sick leave compensation, including nondiscretionary differentials where required
Public Health Emergency Leave: Sick leave related to declarations by public authorities
Short-Term Disability (STD): Income replacement benefit for extended medical absences
Usage Cap: Maximum number of sick leave hours that may be used in a plan year
Waiting Period: Period after hire before sick leave may be used, to the extent permitted by law

Jurisdictional Addenda Index

Refer to the following addenda for location-specific rules. Addenda supersede the general policy where more generous or required by law.

Addendum: <Country>
Addendum: <State/Province A>
Addendum: <City B>
Addendum: <Country C>
Addendum: Union CBA <Bargaining Unit>

Manager Quick Reference

Confirm eligibility and location-specific rules via <HRIS/Vendor Name>
Approve qualifying sick leave without requiring diagnosis details
Request documentation only when permitted (for example, after <Number> consecutive days)
Consider STD/FMLA coordination for absences likely to exceed <Number> days
Maintain confidentiality and route medical information to HR
Consult HR for patterned absences or complex scenarios

Employee and Manager Communication Guide

This section is intended for employees and managers. It explains how sick leave works at <Company Name> in plain language. For detailed rules or exceptions, please refer to the full policy above or your local addendum.

What Sick Leave Is

Sick leave gives you paid time away from work when you or a covered family member is ill, injured, needs medical care, or when certain public health situations arise. Using sick leave should be straightforward and stigma-free. Your health, and the health of your team, matters.

How Much You Get

Most employees earn 1 hour of sick leave for every 30 hours worked, up to <Number> hours each year. In some places, we simply give you a set number of hours at the start of the year (for example, 40 or 56 hours). If your location has a different rule, your local addendum will spell it out.

If you join midyear, you may receive a prorated amount or begin accruing right away. If you leave and come back within <Number> months, we may reinstate your unused balance if required by law.

When You Can Use It

You can use sick leave when:

You’re sick, injured, or need a medical appointment (including preventive care)
You need to care for a child, spouse/partner, parent, or other covered family member who is ill or has an appointment
A public health event closes your workplace or your child’s school/childcare, or you’re told to quarantine
You need time for support related to domestic violence, sexual assault, or stalking, where protected by law

You don’t have to share your diagnosis. A simple note may be required if you miss several days in a row, depending on where you work.

How to Request Sick Leave

If you know in advance (like a scheduled appointment), tell your manager as early as you can and put the time on the calendar and in <Timekeeping System>.
If you wake up sick, notify your manager as soon as you’re able and record the time in <Timekeeping System> using the sick leave code.
If your absence may last more than a few days, HR may reach out to see if other benefits, like Short-Term Disability or protected leave, apply.

Minimum increments are usually 1 hour. If you’re salaried, we’ll track time in a way that follows local law without reducing your salary improperly.

How You’re Paid

Sick leave is paid at your regular rate of pay. You won’t earn overtime for hours you’re out sick, and benefits continue as they do when you’re working. In some locations, we may adjust the pay rate to follow local rules about nondiscretionary pay.

Respect, Privacy, and Safety

We take your privacy seriously. Managers and coworkers don’t need to know your diagnosis. Any documents go to HR and are kept confidential.

Retaliation for using sick leave is not allowed. If you ever feel pressured not to use sick leave, or you’re treated unfairly because you did, report it to <Reporting Channel>.

Tips for Managers

Encourage team members to stay home when ill and model that behavior yourself
Plan coverage proactively and avoid asking for medical details
If someone is out for several days, connect with HR to ensure they have access to all available support

Examples

You work 40 hours per week and start on <Date>. By <Date>, you’ve accrued 10 hours of sick leave. You use 2 hours for a dental appointment and still have 8 hours left.
Your child’s school closes due to a health advisory. You can use sick leave to care for your child that day if your location allows for this use.
You’re scheduled for minor surgery. You tell your manager two weeks ahead and record the expected time in <Timekeeping System>. If your recovery takes longer than expected, HR helps you check if other benefits apply.

Where to Find Your Balance and Get Help

Check your sick leave balance anytime in <HRIS/Vendor Name> under Time Off
For questions about balances or pay, contact <Payroll Support Channel>
For policy or eligibility questions, contact <HR Support/Ask HR>
For local rules, see your location’s addendum on the Policy Repository

By using sick leave responsibly, you protect yourself, your family, and your colleagues. Thank you for helping keep our workplace healthy.

Document Information:

Document Type: Sick Leave Policy
Category: Benefits & Wellness
Generated: August 25, 2025
Status: Sample Template
Next Review: <Insert Review Date>

Usage Instructions:

Replace all text in angle brackets < > with your company-specific information
Review all sections for applicability to your organization
Customize content to reflect your company's policies and local regulations
Have legal and HR leadership review before implementation
Update document header with your company's version control information
At bottom of the document you find a short example on how the content could be communicated to end-users, for instance employees.

This sample document is provided for reference only and should be customized to meet your organization's specific needs and local legal requirements.