Leave and holiday entitlements during COVID-19
All employees (including part-time and casual employees) are entitled to 10 days' sick leave per year if:
- they have six months’ current continuous employment with the same employer, or
- they have worked for the employer for six months for:
- an average of 10 hours per week, and
- at least one hour in every week or 40 hours in every month.
Minimum sick leave entitlements increased from 5 to 10 days per year from 24 July 2021.
Sick leave increases to 10 days
Employees get the extra five days per year when they reach their next entitlement date. The entitlement date will be either:
- after reaching 6 months’ employment, or
- on their sick leave entitlement anniversary (12 months after they were last entitled to sick leave).
For each 12-month period after meeting the above criteria, each employee gets at least 10 days’ sick leave.
If in any year the employee doesn’t meet the criteria, then they don’t get any new sick leave entitlement. But they can use their sick leave balance which may have carried over from the previous year. An employee may re-qualify for sick leave as soon as they meet the criteria.
Asking an employee to come to work while sick can endanger the health or safety of other workers. If an employee has no sick leave left, employer and employee can agree that they:
- use sick leave in advance
- use some of their annual holidays, or
- they can take unpaid leave.
Sick leave entitlements are not pro-rated in any way. For example, even if a part-time employee only works three days a week, they still get 10 days’ sick leave a year and can accumulate up to 20 sick days a year.
Work out if you qualify
Telling your employer
You need to tell your employer as soon as possible that you are sick or injured and you want to take sick leave. A phone call is the best way to let your employer know, but your workplace may have its own systems to tell them you are sick.
Payment for sick leave
Payment for sick leave is only made when it is a day that an employee would otherwise have worked if they were not sick. If it was not an otherwise working day, then the employee would not be entitled to be paid sick leave. For example, if the employee was on unpaid leave or they fell sick on a day they weren't rostered to work.
For example, James normally works 8 hours Tuesday to Friday and four hours on Saturday. If he is sick on Saturday, the employer should pay James his relevant daily pay for the sick day, i.e. four hours.
If relevant daily pay is used for the calculation, the payment must include overtime if the employee would have worked overtime on the day if they hadn’t been sick.
For example, Claire’s employment agreement specifies an hour for lunch. But Claire usually takes only half an hour for lunch, at her employer’s request. Instead, she gets an extra half hour payment each day. If Claire is sick, her sick leave payment includes the extra half hour she is normally paid, even though it isn’t in her employment agreement.
If the employee works continuously but has an irregular pattern, sick leave is payable if they were rostered to work on the day leave is taken, or they could have expected to be rostered. The sick leave is paid at the employee’s relevant daily pay or average daily pay.
Payment for sick leave is made in the normal pay cycle.
Part day sick
The Holidays Act 2003 describes sick leave entitlement in terms of days, and doesn’t divide it into part days or hours. This means that if an employee works for part of the day and then goes home sick, this may be counted as using a whole day of sick leave, no matter how much of the day they worked before going home.
However, the employee and employer can agree to describe the entitlement as hours or part days if this is better for the employee. For example, if an employee worked a half day then went home sick, their employer could agree to only deduct a half day of sick leave. Payment for this half sick leave day would be half of their relevant daily pay or average daily pay.
Your employment agreement can’t give you less sick leave benefits than you get under the Holidays Act 2003, but it can give you more. Examples of the better sick leave benefits some employment agreements or workplaces have are:
- the employee gets more than 10 days' sick leave each year
- sick leave an employee can carry over is not capped or is capped at higher than 20 days.
You should look at your employment agreement and workplace policies about sick leave.
Running out of sick leave
If you have run out of sick leave and you’re sick or injured (or your spouse, partner or dependant is sick or injured) you can:
- ask your employer to give you sick leave in advance
- use some of your annual holidays, or
- ask to take unpaid leave.
Sick leave during annual holidays
If an employee (or their spouse, partner or dependant) gets sick before starting scheduled annual holidays, they can take the portion of annual holidays they’re sick for, as sick leave.
If an employee (or their spouse, partner or dependant) gets sick during their annual holidays, they can change the days they are sick for to sick leave days rather than annual holidays – but only if their employer agrees.
The employer can ask the employee to prove the sickness before allowing them to change their annual holidays to sick leave.
Unused sick leave
Any unused sick leave at the end of a 12-month period can be carried over and added to their next year's entitlement.
For example, after 6 months' employment, an employee gets at least 10 days’ sick leave. If the employee doesn’t use any sick leave during the following 12 months, they will still get another 10 days’ sick leave on their entitlement date. This will give them a total of 20 days’ sick leave.
The maximum amount of sick leave that can be accumulated under the Holidays Act 2003 is 20 days. The employer and employee can agree that sick leave can accumulate to more than 20 days. They can do this in the employment agreement or through workplace policies.
Unused sick leave can’t be cashed-up or be part of any final payment to the employee when they leave, unless this is in the employment agreement.
The employer is not legally required to give employees time off work to visit the doctor or dentist unless the employment agreement says so.
If there is nothing specified in the employment agreement, the employer and employee can negotiate. If they cannot agree, the employee can schedule these appointments for a time outside of work hours. If the employee is sick or injured, they could use sick leave to attend the appointment.
Tools and Resources
Leave and holidays guide - PDF 3.9MB
A guide to employees’ minimum leave and holiday entitlements.
Subscribe to our email newsletter
Receive news and updates each month from Employment New Zealand.