Sick leave to increase to 10 days per year
What is changing?
Parliament has passed a Bill that will increase an employee’s minimum sick leave entitlements to 10 days per year.
As New Zealand continues to recover from the Covid-19 pandemic, the amendment to the Holidays Act 2003 will give employees access to more sick leave when they, their spouse, partner, or someone who depends on them for care are sick or injured.
What is not changing?
The new law will not change:
the criteria an employee must meet to qualify for sick leave; or
the process for taking sick leave; or
when, and how, an employee must prove sickness or injury.
Those rules, which are set out in the Holidays Act, will remain the same.
An employee will still be able to accumulate up to 20 days sick leave in total.
When does an employee qualify for sick leave?
To be entitled to sick leave, an employee must have:
completed 6 months’ current continuous employment with their employer; or
if not, over a period of 6 months, worked for their employer for:
at least an average of 10 hours a week during that period; and
no less than 1 hour in every week during that period or no less than 40 hours in every month during that period.
Part time and full time employees receive the same minimum sick leave entitlements.
When will the change happen?
The law will come into force on Monday 24 July 2021.
A qualifying employee will not receive additional sick leave straightaway but will have to wait until their next sick leave entitlement anniversary date.
It will therefore be essential for employers to check:
firstly, whether an employee qualifies for sick leave entitlements; and
if so, when the sick leave entitlement anniversary date will occur.
Take action
As a minimum entitlement, the law change will happen automatically. However, it is a good idea for employers to discuss the changes with their workers as soon as possible so that everyone is on the same page.
It is also a good time for employers to review their current employment arrangements to see whether any other changes need to be made. Ideally, a review should happen every 12 months or, more regularly, as the market and relevant laws change.
As employment law changes often, and mistakes can end up being costly, it is important that you speak to your lawyer when doing so.
We can help
Our team of experienced employment lawyers would be delighted to advise and represent you. Please contact us to discuss.
