Your Questions Answered

QuestionAnswer
What is changing?The minimum entitlement to sick leave is changing from 5 to 10 days
When is it changing?Mid-July, 2 months after Royal assent
When does it become effective?With an employee’s next entitlement date. That is, either when they reach their 6-month stand-down for the first time or when they reach their next anniversary date (12 months after their last entitlement)
What if our employees already receive 10 or more days?In this case, there will be no impact for them, unless more favourable terms are negotiated
Does the maximum of 20 days change?No, employees are still able to roll over to accumulate only a maximum of 20 days. more favourable terms may be applied if negotiated
What about part-timers?If an employee only works 1 day per week, they are still entitled to the full 10 days.
Important points to remember1. Sick leave should be held in units of days
2. Your payroll system will need to be updated to cater for these changes
3. It is a good time to review your setup and ensure compliance with the new conditions
What is coming next?The government anticipates that early 2022, the next phase of the change to sick leave will be rolled out. This will see employees getting access to some of their sick leave from day 1 of their employment.
Where can I find more information?https://www.mbie.govt.nz/business-and-employment/employment-and-skills/employment-legislation-reviews/increasing-minimum-sick-leave-entitlement/