Sick Leave – Proposed Changes to Entitlement in 2021

In what is likely to receive mixed feedback between businesses and their employees, the New Zealand Government have introduced a bill to double the legal minimum of paid sick leave from 5 days to 10 days by late 2021.

Given the current Covid-19 climate, this will be well received by employees who are apprehensive about being at work due to illness or are following Ministry of Health guidelines but do not have any sick leave entitlement. In contrast, while the impact of an increased leave liability will surely be on the minds of employers, there are also some positives for them; having your employees stay home when they’re sick therefore not bringing illness in to the workplace, and there will be no change to the maximum accumulation of sick leave with the limit staying at 20 days.

The current sick leave legislation in the Holidays Act 2003 section 65(2), states that an employee is entitled to 5 days. If your payroll system currently does not store your sick leave (or other FBAPS leave – Family Violence, Bereavement, Alternative Days, Public Holidays & Sick) in days, feel free to contact us to see what implications this could carry for your business.