Sick Leave – Proposed Changes to Entitlement in 2021

December 1, 2020

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.

Proposed Sick Leave Changes 2021

  • Sick Leave will change to a minimum of 10 days per year in late 2021
  • Sick Leave will still be capped to a maximum balance of 20 days
  • Employers can still opt to provide entitlement above the 10-days per year or maximum balance of 20 days
  • Once passed, the bill is likely to provide the 10-day entitlement to employees in line with their current anniversary so there won't be an immediate increase and leave liabilities
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.
Share article

Subscribe to keep in touch

"*" indicates required fields

Name*

Contact Us

Let’s talk about how NLC Payroll +MORE can bring clarity, control, and confidence to your payroll.