Skip to main content

Disclaimer: Educational purposes only. Not legal advice. Consult a qualified NZ legal practitioner for your specific circumstances.

SimplifiedLaw.co.nz
employment

Sick leave entitlements: Who gets it and when?

Key Takeaway

New Zealand employees are entitled to 10 days of paid sick leave per 12-month period after six months of continuous employment. Sick leave can be used for an employee's illness or injury, or to care for a dependent. Unused leave can accumulate up to 20 days, providing a safety net for employees.

Sick Leave Entitlements in New Zealand

In New Zealand, employees are entitled to paid sick leave, which is a period of absence from work due to illness or injury. These entitlements are primarily governed by the Holidays Act 2003, providing a safety net for employees and their families during times of ill health.

Eligibility for Sick Leave

To be eligible for sick leave, an individual must be an employee – a person who has entered into or works under a contract of service with an employer [Source: Holidays Act 2003, s 5; Employment Relations Act 2000, s 6]. Independent contractors are generally not entitled to sick leave.

An employee becomes entitled to sick leave after they have been employed by their employer for a continuous period of at least 6 months [Source: Holidays Act 2003, s 65(1)(a)]. During this 6-month period, the employee must have either:

  • Worked for an average of at least 10 hours a week [Source: Holidays Act 2003, s 65(1)(b)(i)].
  • Worked at least 1 hour in every week, or 40 hours in every month [Source: Holidays Act 2003, s 65(1)(b)(ii)].

This includes part-time and casual employees who meet these minimum work requirements [Source: Holidays Act 2003, s 65].

Accrual and Calculation of Sick Leave

Once an employee meets the eligibility criteria, they become entitled to 10 days of paid sick leave on the completion of each 12-month period of continuous employment with their employer [Source: Holidays Act 2003, s 67(1)]. The first entitlement begins after the initial 6 months of employment, and then on each subsequent 12-month anniversary of employment.

Unused sick leave can accrue (build up) and be carried over to future years. An employee can accumulate a maximum of 20 days of unused sick leave [Source: Holidays Act 2003, s 68]. This means that while an employee is entitled to 10 days per year, they can have a total of up to 20 days available if they haven't used their full entitlement in previous years.

Using Sick Leave

Sick leave may be taken for various reasons, including when:

  • The employee is sick or injured [Source: Holidays Act 2003, s 69(1)(a)].
  • The employee's spouse or partner is sick or injured [Source: Holidays Act 2003, s 69(1)(b)].
  • A person who is dependent on the employee is sick or injured. This includes a child, parent, or other person who is dependent on the employee [Source: Holidays Act 2003, s 69(1)(c)].

Notice Requirements

An employee must advise their employer as soon as possible if they intend to take sick leave. This notification should state that the employee is unable to attend work due to sickness or injury, or to care for an eligible dependent [Source: Holidays Act 2003, s 70].

Proof of Sickness or Injury

An employer may ask for proof of sickness or injury, such as a medical certificate (a document from a registered health professional confirming an illness or injury) [Source: Holidays Act 2003, s 71]. An employer can only require proof if:

  • The sick leave taken is for 3 or more consecutive calendar days (including weekends and public holidays) [Source: Holidays Act 2003, s 71(1)(b)].
  • The employer informs the employee at the earliest opportunity that proof is required [Source: Holidays Act 2003, s 71(2)].
  • If the sick leave is for less than 3 consecutive calendar days, an employer can still request proof, but they must agree to pay the employee's reasonable expenses in obtaining that proof [Source: Holidays Act 2003, s 71(3)].

Payment for Sick Leave

When an employee takes sick leave, they must be paid for that leave. The payment for sick leave is calculated based on what the employee would have earned if they had been at work. This is referred to as relevant daily pay [Source: Holidays Act 2003, s 72(1); s 9]. If it is not possible or practicable to determine an employee's relevant daily pay, or if the employee's daily pay varies within the pay period when the sick leave is taken, then the payment must be based on the employee's average daily pay [Source: Holidays Act 2003, s 9A]. Average daily pay is generally calculated by taking the employee's gross earnings over the last 52 weeks and dividing it by the number of whole or part days during which the employee worked or was on paid leave over that period [Source: Holidays Act 2003, s 9A(2)].

Employer Obligations

Employers have an obligation to ensure their employees receive their full sick leave entitlements as set out in the Holidays Act 2003. This includes maintaining accurate records of sick leave taken and entitlements accrued for each employee [Source: Holidays Act 2003, s 81(1)(c)]. Employment agreements must include provisions for sick leave, and these provisions must meet or exceed the minimum entitlements in the Act [Source: Employment Relations Act 2000, s 65].

When to Seek Independent Legal Advice

Individuals seeking specific guidance on their employment situation, or who believe their sick leave entitlements are not being met, should consider seeking independent legal advice. Information on employment rights and obligations can be obtained from official government bodies such as Employment New Zealand, or from Community Law Centres which provide free legal advice.

Key Resources