With winter rapidly approaching and the continued effect of Covid-19, it is timely that sick leave entitlement will increase from 5 to 10 days. The Holidays Amendment Bill has now been passed in parliament and will take effect from 24th July 2021.
Here are some details you will need to know as an Employer.
- All employees who meet the requirements are entitled to a minimum of 5 sick days every 12 months.
- 20 days is the maximum an employee can accumulate; the employer can agree to give more.
Note: Sick leave is not pro-rated; for example, an employee who works one day every week is entitled to 5 sick days.
What you need to know
- Employees will get the extra five days when they reach their next entitlement date – either after reaching 6 months’ employment or on their sick leave entitlement anniversary (12 months after they were last entitled to sick leave).
- Employees who already get 10 or more sick days a year will not be affected by this change.
- The maximum amount of unused sick leave that an employee can be entitled to will remain 20 days.
Source - employment.govt.nz/news-and-updates
What action should you take?
- Check how your payroll software provider will manage the changes
- Amend any new employment agreements to show 10 sick leave days
- Talk to your employees to make sure they are aware of the changes