Frequent Employee Absences: Can You Reduce Their Hours?

​When an employee’s regular absences start to affect the day-to-day running of a business, it is understandable for an employer to consider whether the current working arrangement is still practical. However, reducing an employee’s contracted days is not something an employer can simply impose because of attendance concerns.

There are several things to consider first, including the reason for the absences, whether they are authorised, what the employment contract or applicable award says, and whether changing the employee’s days or hours would affect their existing employment conditions. The best approach is usually to have an open and respectful conversation with the employee, understand what is happening, and explore whether there are reasonable and workable options for both the employee and the business.

What an Employer Can Consider

If an employee's repeated absences are genuinely affecting the business, the employer can:

• discuss the attendance concerns with the employee;

• ask for appropriate medical evidence where permitted;

• understand whether there is an underlying illness, injury or disability;

• consider whether reasonable adjustments or alternative working arrangements are appropriate;

• review whether the employee can safely and reliably perform the inherent requirements of the role;

• consider whether the current staffing arrangement is operationally sustainable; and

• where appropriate, discuss a mutually agreed change to hours or days.

If the employer wants to change a regular roster or ordinary hours, Fair Work says the employer must generally discuss the proposed change with the employee, provide information about the change, invite their views and consider those views. Awards or enterprise agreements can impose additional requirements.

Managing Attendance Fairly and Consistently

When an employee’s absences start to create pressure for a business, it can be tempting to look at changing their working days. For example, if someone is contracted to work Monday to Friday but is regularly absent on certain days, reducing their hours might seem like a simple solution. However, it is important not to jump straight to changing their working arrangement. Before making any decisions, employers should take the time to understand why the absences are occurring and whether they are authorised or protected under workplace laws.

Employees who are absent because of illness or injury may have protections under the Fair Work Act 2009, and additional protections can apply where absences relate to disability or family and caring responsibilities. Taking a fair, consistent and respectful approach including having an open conversation with the employee and considering the circumstances can help businesses address genuine operational concerns while reducing the risk of unintentionally disadvantaging an employee.

What if the Absences Genuinely Make the Role Unsustainable?

Sometimes, despite everyone’s best efforts, an employee’s ongoing absences may make their current working arrangement difficult to sustain. An employer is not necessarily required to continue an arrangement indefinitely if an employee is unable to meet the inherent requirements of the role, or if the arrangement is genuinely no longer workable from an operational perspective.

However, this is an area where employers should proceed carefully rather than making assumptions or rushing to change an employee’s hours. Before making any decision, it is important to look at the circumstances as a whole, understand the reasons for the absences, consider any workplace obligations or reasonable adjustments, and have an open and constructive conversation with the employee about possible options.

The employer should first properly assess:

1. What does the employment contract say?

Is the employee full-time, part-time or casual? What days/hours were agreed?

2. What does the applicable award or enterprise agreement say?

Some awards have specific provisions concerning hours, rosters and changing arrangements.

3. Are the absences authorised?

Approved personal/carer's leave is very different from unexplained or unauthorised absenteeism.

4. Is there an underlying medical condition or disability?

If so, reasonable adjustments may need to be considered. In Victoria, employers have obligations under the Equal Opportunity Act 2010 (Vic) regarding reasonable adjustments for employees with disability. Adjustments can include changes to working hours or work practices.

5. Is the employee unable to perform the inherent requirements of the position?

This is different from simply saying their attendance is inconvenient.

6. Is there a genuine operational requirement?

For example, a role may require consistent attendance on particular days because of customer coverage, supervision, safety or minimum staffing requirements.

A Safer HR Approach

Attendance concern → evidence → consultation → understand cause → consider adjustments → assess operational requirements → explore options → document outcome.

The employer might say:

“We've noticed that your attendance has become an ongoing concern and it's affecting our ability to meet operational requirements. We would like to meet with you to understand what is happening, discuss whether there are any support or workplace adjustments we should consider, and work through what arrangements may be sustainable for both you and the business.”

The above approach is very different from simply telling an employee that their days are being reduced without first having a conversation or considering their circumstances.

One Important Point

If the employee requests reduced days because of a disability, illness, caring responsibilities or another eligible circumstance, that becomes a flexible-work issue as well. Eligible employees can request changes to hours, patterns or location of work, and employers have specific obligations when responding to such requests.

So, “Can I reduce this employee from five days to three because their absences are affecting my business?” does not have a simple yes/no answer.

Before changing an employee’s working days or hours, an employer should have a genuine and reasonable reason for doing so. The decision should not simply be a reaction to an employee taking approved leave or being absent for a reason that is protected under workplace laws. It is important to look at the situation fairly, understand the circumstances and consider the needs of both the employee and the business.