Why Sick Leave Stigma Is Hurting Your Business More Than You Think

New national data from people2people Recruitment reveals a troubling trend for Australian workplaces: rising illness-related pressure is leading more employees to work while sick — often without any sick leave remaining, and increasingly with a sense of guilt or anxiety about taking time off.

The annual poll highlights a contradiction at the heart of modern work culture. While health and wellbeing are widely acknowledged as essential, the lived reality for many workers paints a different picture: one of presenteeism, internalised pressure, and poor health outcomes for teams and businesses alike.

Sick Leave Under Pressure

The findings show a year-on-year increase in workers attending work while unwell due to having no sick leave left. In 2024, 60% of respondents reported working sick multiple times for this reason. That figure has risen slightly in 2025, with 63% admitting to doing the same.

Far from abusing the system, many workers are using only a fraction of their entitlement. The proportion of employees taking just three or fewer sick days has jumped from 39% in 2024 to 60% in 2025. Meanwhile, those taking the full ten-day allocation has dropped sharply — from 35% to 22%.

The reasons behind this behaviour go beyond policy. Twenty-two per cent of workers say they feel guilty taking time off, 18% feel too busy to stop, and 16% fear being judged. This indicates a deeper cultural issue — one that even generous leave policies won’t fix on their own.

Vaccination Gaps Widen

Flu season presents another risk to business continuity and staff wellbeing. While 84% of employees believe employers should offer flu vaccinations (ideally subsidised or free), only 36% report receiving one in the past year. A further 4% said they intended to but forgot — meaning nearly two-thirds of the workforce may be exposed this winter.

What Businesses Can Do

To maintain productivity and protect their teams, employers must move beyond policy and actively promote a healthy, supportive workplace culture. people2people recommends:

• Promote guilt-free sick leave – Leaders must model and encourage rest and recovery.

• Subsidise flu vaccinations – The demand is there, but access remains patchy.

• Encourage early intervention – Time off for minor illness can prevent longer absences later.

• Clarify sick leave processes – Many employees are unsure of entitlements or how to apply.

Employees also have a role to play by using their leave when needed, understanding their workplace rights, and engaging early with managers if leave has run out.

Ultimately, supporting staff wellbeing is not just about reducing absence — it’s about ensuring a healthier, more sustainable workforce. In a tight labour market, a culture that prioritises wellness could be a key competitive advantage.

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