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.
Currently
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
