Under the current Holidays Act 2003, employees are entitled to sick leave once they have worked with the same employer for six months. This includes employees who have worked continuously as well as those who have worked an average of at least 10 hours per week, including at least one hour a week or 40 hours a month.
Employees currently (before 24 July 2021) get a minimum of 5 days’ sick leave per year after their first 6 months service (their first entitlement date) when meeting the eligibility criteria, and then 5 days per year on each following 12-month anniversary of that date.
The Holidays (Increasing Sick Leave) Amendment Act 2021 comes into effect on 24 July 2021. The Act increases minimum sick leave entitlements from 5 to 10 days per year.
An employee would first become entitled to 10 days’ sick leave on their next entitlement date. This is based off their anniversary date. New employees will receive 10 days entitlement as soon as they become entitled to sick leave.
Employees who already have a sick leave entitlement when the legislation comes into force will become entitled to 10 days’ sick leave on their next entitlement date. That is, on the 12 month anniversary of when they last became entitled to sick leave.
Employees who already receive an entitlement to 10 or more sick leave days a year will not be directly affected by this change in the minimum entitlement.
Example Cases
Scenario one – new employee
Mira started her job with an IT company in Hamilton on 31 January 2021. She is first entitled to sick leave on 31 July 2021 (6 months after she started). As her first entitlement date falls after the legislation change comes into effect, Mira gets 10 days’ sick leave from 31 July 2021. Mira is entitled to another 10 days’ sick leave on 31 July 2022. Unless agreed with her employer, Mira still won’t be able to accrue more than 20 days sick leave.
Scenario two – existing employee
Elvis works for a small furniture store in Dunedin. He has worked for the same company for a few years and is currently entitled to 5 days’ sick leave per year. Elvis was last entitled to sick leave on 20 December 2020, and his next entitlement date will be 20 December 2021, which is after the legislation change comes into effect. From 20 December 2021, Elvis will get 10 days’ sick leave per year. Unless agreed with his employer, Elvis still won’t be able to accrue more than 20 days’ sick leave.
Scenario three – existing employee
Aroha works for a bank in Auckland. She has worked for the same bank for over 10 years. Aroha was last entitled to 5 days’ sick leave on 23 July 2020 and her next entitlement date is 23 July 2021, before the legislation change comes into effect on 24 July 2021. This means Aroha has to wait until her following sick leave entitlement anniversary on 23 July 2022 to get 10 days’ sick leave per year. Unless agreed with her employer, Aroha still won’t be able to accrue more than 20 days sick leave.