Sapna is a content writer at Sprintlaw. She has completed a Bachelor of Laws with a Bachelor of Arts. Since graduating, she has worked primarily in the field of legal research and writing, and now helps Sprintlaw assist small businesses.
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Yes, casual employees in New Zealand can get sick leave if they have worked for you for 6 months and meet the ongoing work test. Casual workers can also have annual leave, bereavement leave, family violence leave and public holiday entitlements, but the answer depends on their work pattern, what has actually been agreed, and how you pay them.
Hiring casual staff can be a great way to stay flexible, especially if your busy periods change week to week. But casual doesn't mean no rules. Leave entitlements are one of the most common areas where employers accidentally underpay staff or create confusion that could have been avoided with clearer contracts, rosters and payroll settings.
What Counts As A Casual Employee In New Zealand?
In New Zealand, casual employment is about the real nature of the working relationship, not just the label in the contract. If you call someone casual but roster them every week with predictable hours, they may start to look more like a part-time employee.
A casual employee will usually have:
- Irregular and intermittent work, where hours change and shifts aren't guaranteed
- No firm commitment from you to offer ongoing work
- No firm commitment from the employee to accept work when it's offered
- Work offered as needed, such as covering events, busy weekends, seasonal demand or staff absences
The paperwork matters, but the day-to-day reality matters too. If a worker starts as casual and then works every Monday, Wednesday and Friday for months, your business may need to update the agreement and payroll treatment to reflect what is actually happening.
It's also worth separating casual employees from independent contractors. A contractor isn't meant to be part of your employee leave system at all. From 2026, the Employment Relations Act 2000 includes a contractor gateway test designed to give more certainty where a worker is engaged as an independent contractor, but it doesn't let a business simply relabel an employee as a contractor to avoid leave entitlements. If the person is working as an employee, employee rights still matter.
Having the right Employment Contract in place is a big part of getting the classification and entitlements right.
Do Casual Employees Get Sick Leave In NZ?
Often, yes. A casual employee can become entitled to paid sick leave once they meet the eligibility rules under the Holidays Act 2003.
The minimum sick leave entitlement is 10 days' paid sick leave per year. An employee becomes entitled after 6 months if they have either worked continuously for you for 6 months, or over a 6-month period have worked for you for at least:
- an average of 10 hours a week, and
- at least 1 hour in every week or 40 hours in every month
That second test is the one that commonly matters for casual employees. A casual worker doesn't need to work full-time to qualify. If they have a regular enough pattern over the 6-month period, they may be entitled to sick leave even if your contract calls them casual.
Sick leave can generally be used when the employee is sick or injured, or when their spouse, partner, dependent child or another person who depends on them for care is sick or injured. Sick leave can also carry over, but the employer only has to allow accumulation up to the statutory cap of 20 days.
For employers, the practical question is usually not just whether the person is casual. It's whether they have reached the 6-month threshold and whether their hours meet the ongoing work test.
How Does A Casual Contract Affect Sick Leave?
A casual contract doesn't automatically remove sick leave rights. It can help explain that shifts are offered and accepted one by one, but it can't contract out of minimum entitlements under the Holidays Act 2003.
If an eligible casual employee has accepted a shift and then is sick on that day, paid sick leave may apply. If no shift was offered, no shift was accepted and there was no expectation they would work that day, sick leave will usually not be payable for that day.
That's why your shift process is so important. You should be able to show:
- when a shift was offered
- whether the employee accepted or declined it
- what hours were agreed
- what the employee would have earned if they had worked
Sick leave is paid at the employee's relevant daily pay where that can be worked out. If it isn't practical or possible to determine relevant daily pay, average daily pay may be used. For a casual worker, this often means looking closely at the accepted shift and the employee's actual pattern of work.
Worked Example: Casual Employee Sick Leave
Maia works casually for a cafe at $25 per hour. She usually works one or two shifts each week. Over the last 6 months, she has worked an average of 12 hours a week, and she has worked at least 1 hour every week.
On Monday, the cafe offers Maia a 6-hour Wednesday shift. Maia accepts by text. On Wednesday morning, she is too sick to work and gives notice before the shift starts.
Because Maia has worked for 6 months and meets the 10-hour average and weekly work test, she is eligible for sick leave. Because she had already accepted a 6-hour shift, the cafe can usually identify what she would have earned that day. Her sick leave payment for that shift would be 6 hours x $25 = $150 gross, subject to normal payroll deductions.
If Maia had not accepted any shift for Wednesday, and there was no expectation she would work that day, the answer could be different. The key difference is the accepted shift.
Do Casual Employees Get Annual Leave?
Yes, casual employees can have annual holiday entitlements. The key difference is how annual leave is usually handled where the work is genuinely casual, irregular or intermittent.
Under the Holidays Act 2003, employees who complete 12 months' continuous employment are entitled to at least 4 weeks' paid annual holidays. For employees with regular work patterns, those holidays are usually taken as paid time off.
For some casual employees, it may not be practical to provide 4 weeks of paid annual holidays because the work is so intermittent or irregular. In those circumstances, employers commonly pay annual holiday pay on a pay-as-you-go basis, often called 8% holiday pay.
When Can You Pay 8% Holiday Pay To A Casual Employee?
Pay-as-you-go holiday pay can be used only in limited situations, including where the employee's work is so intermittent or irregular that it isn't practicable to provide 4 weeks' annual holidays, or for some fixed-term arrangements of less than 12 months where the legal requirements are met.
If you pay 8% holiday pay, it should be:
- provided for in the employment agreement
- calculated correctly as 8% of gross earnings
- paid at the same time as wages
- clearly identified in wage and time records and payslips
This is an area where payroll mistakes can become expensive. If pay-as-you-go holiday pay is used when it shouldn't have been, or if it isn't clearly identifiable, an employer may be required to pay annual holiday entitlements again.
Worked Example: 8% Holiday Pay
Ravi is a genuine casual event worker. Some weeks he works 20 hours, some weeks he works no hours, and he can decline shifts. His hourly rate is $24, and his agreement correctly provides for 8% holiday pay because the work is intermittent and irregular.
In one pay period, Ravi works 15 hours. His ordinary wages are 15 x $24 = $360. His 8% holiday pay is $28.80. His gross pay for that period is $388.80, before tax and other deductions. The payslip should make the holiday pay component clear, rather than hiding it inside a single rolled-up figure.
If Ravi later starts working every week on a fixed roster, the business should review whether pay-as-you-go holiday pay is still appropriate. A genuinely casual arrangement can change over time.
What About Public Holidays And Alternative Holidays?
Public holiday entitlements for casual employees depend on whether the public holiday would otherwise be a working day for that employee.
If a casual employee would otherwise have worked on the public holiday, they're generally entitled to be paid for the public holiday even if they don't work. For a casual employee, this depends on the facts, such as recent work patterns, rosters, accepted shifts and any expectation that they would normally work that day.
If a casual employee works on a public holiday, they must be paid at least time and a half for the hours worked. If the day would otherwise have been a working day for them, they're also entitled to an alternative holiday, often called a day in lieu.
If the public holiday wasn't otherwise a working day for the employee, they still get time and a half for the hours they actually work on the public holiday, but they won't usually receive an alternative holiday.
Worked Example: Public Holiday Pay
Sophie is a casual retail employee who has worked almost every Monday for the last 3 months. A public holiday falls on a Monday. If Sophie doesn't work that day, it may still be an otherwise working day because of her pattern of Monday work, so public holiday pay may be owed.
If Sophie works 5 hours on that public holiday at her usual rate of $26 per hour, her time-and-a-half rate is $39 per hour. Her pay for the hours worked is 5 x $39 = $195 gross. If Monday is an otherwise working day for her, she also gets an alternative holiday to take later.
Public holiday questions can be fact-specific, so keep good roster records and do the otherwise working day assessment before finalising payroll.
Do Casual Employees Get Bereavement Leave, Family Violence Leave Or Parental Leave?
Casual employees can have other leave entitlements if they meet the relevant eligibility tests. Again, the label casual isn't the end of the story.
Bereavement Leave
Eligible employees are entitled to bereavement leave after 6 months if they meet the same type of ongoing work test used for sick leave. The amount of leave depends on the relationship and circumstances. For example, the Holidays Act 2003 provides 3 days for certain close family members and 1 day in other recognised situations where the employer accepts the employee has suffered a bereavement.
Family Violence Leave
Eligible employees can access paid family violence leave. The statutory entitlement is 10 days per year for employees who meet the eligibility requirements. This can apply to casual employees if they meet the work pattern tests.
Parental Leave
Parental leave depends on separate work tests based on time and hours worked. Casual employees can qualify if they meet the thresholds. If an employee raises parental leave, check the current government guidance carefully and make sure you don't assume they're excluded just because they're casual.
Unpaid Leave
Some unpaid leave is agreed between you and the employee rather than being automatic. Your employment agreement and policies should explain how employees request leave, how you approve or decline it, and how you record it.
How To Stay Compliant When You Employ Casual Staff
Casual work can be simple when the arrangement is genuinely irregular and the paperwork matches reality. Problems usually arise when the business grows, rosters become more predictable, or payroll settings aren't updated.
Use this checklist to reduce the risk of mistakes:
- Check The Role Before Hiring: Decide whether the work is genuinely casual, part-time, fixed-term or contractor-based before you issue documents.
- Use The Right Agreement: Make sure the agreement explains that shifts are offered and accepted separately, and sets out pay, holiday pay and leave processes clearly.
- Record Shift Offers And Acceptance: Use texts, emails, rostering software or another written system so you can see what was actually agreed.
- Track The 6-Month Leave Test: Review casual employees who have worked for 6 months to see whether sick leave, bereavement leave and family violence leave may now apply.
- Review 8% Holiday Pay: Check that pay-as-you-go holiday pay is lawful for the arrangement, separately identifiable and still appropriate as the role evolves.
- Assess Public Holidays Before Payroll: Decide whether the public holiday was otherwise a working day for that casual employee before processing pay.
- Review Patterns Regularly: If a casual employee starts working predictable hours, update the agreement and payroll settings rather than relying on an old casual label.
Many employers also use a staff handbook to explain everyday processes like leave requests, notice, workplace conduct and rostering. If you're putting together a broader set of documents, a Staff Handbook can make expectations and processes much clearer.
If you're reviewing your overall employment compliance, a Legal Health Check can help you spot the key areas to tidy up across your business.
Common Mistakes Employers Make With Casual Leave Entitlements
Calling Someone Casual When They Are Actually Part-Time
If a worker is on an ongoing roster with predictable hours, the relationship may no longer be genuinely casual. This can affect annual leave, sick leave, public holidays, notice and general employment processes.
Assuming Casual Employees Never Get Sick Leave
This is one of the most common payroll mistakes. If a casual worker has worked for you for 6 months and meets the ongoing work test, they can be entitled to sick leave.
Using 8% Holiday Pay Without Checking The Rules
Pay-as-you-go holiday pay isn't a shortcut for every casual employee. It must be appropriate for the arrangement, recorded correctly and clearly identifiable.
Poor Records Around Shifts
For casual staff, many disputes come down to whether a shift was actually agreed. Keep written records of offers, acceptance, cancellations and changes.
Forgetting To Reclassify Roles As The Business Grows
A casual arrangement that made sense in month one may not make sense in month nine. Build a regular review into your payroll and HR process so your documents keep up with reality.
Key Takeaways
- Casual employees in New Zealand can get sick leave if they meet the 6-month eligibility and ongoing work tests.
- Casual employees can receive 8% holiday pay, but only where pay-as-you-go holiday pay is legally appropriate and clearly recorded.
- Public holiday entitlements depend on whether the day would otherwise have been a working day for that casual employee.
- Bereavement leave, family violence leave and parental leave can apply to casual employees if they meet the relevant eligibility rules.
- The real work pattern matters more than the label in the contract, so review casual roles as rosters become more regular.
- Clear contracts, shift records, payslips and policies are the best way to avoid underpayments and confusion.
If you'd like help with casual employment contracts, leave wording, payroll-friendly policies and staff handbooks, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.
Document employment compliance
When should NZ employers get documents reviewed?
Leave, safety and worker-status questions can quickly become compliance issues if contracts, policies and payroll settings do not match the law.
Sapna Goundancontent writer
