Employees calling in sick are an inevitable part of running a business – after all, falling sick is just a part of life. But when an employee frequently takes sick leave or is away for extended periods it can take a toll on your business’ productivity and finances. 

Before you do anything, it’s important to understand what your obligations are as an employer. In some situations, firing someone, or even taking disciplinary action against them might be unlawful. This could leave you and your business liable to legal action and some serious civil penalties.

This article will walk you through what New Zealand law has to say about sick leave, and give you some tips for managing some of these sticky situations.

What Is Personal/Carer’s Leave?

Sick leave falls into a category of employee entitlements called ‘Personal and Carer’s Leave’, which is provided for by the Holidays Act 2003 in New Zealand.

Personal/carer’s leave is defined as leave taken:

● because the employee is not fit for work because of a personal illness, or personal injury, affecting the employee

● to provide care or support to a member of the employee’s immediate family or household because of:

○ a personal illness, or personal injury
○ an unexpected emergency

An employee’s immediate family member includes their spouse or partner, child, parent, grandparent, grandchild or sibling, as well as that of their spouse or partner.

Who Can Take Sick Leave? 

Under New Zealand law, all employees, including casual employees, are entitled to paid sick leave after six months of continuous employment with the same employer or if they have worked for the employer for an average of 10 hours a week and at least one hour in every week or 40 hours in every month over the past six months.

Employees can take 2 days of unpaid carer’s leave each time a member of their family or household requires care or support, provided they meet the criteria for sick leave entitlement.

How Many Days Of Personal/Carer’s Leave Can An Employee Take Each Year?

Under the Holidays Act 2003, employee entitlements to personal/carer’s leave are as follows:

Type Of LeaveDays Per Year
Paid sick leave10 days after the first six months of employment and an additional 10 days each subsequent 12-month period
Unpaid carer’s leave2 days

This may be different if your employees are covered by a collective agreement, or if your employment contracts offer more generous leave entitlements.

Paid Sick Leave

Each year, after the first six months of employment, employees are entitled to 10 days of paid sick leave, and an additional 10 days for each subsequent 12-month period. This entitlement accrues progressively throughout the year, so employees will start earning this type of leave on their first day of work.

For part-time employees, sick leave accrues on a pro rata basis based on the number of hours worked.

If an employee doesn’t use up all of their accrued sick leave, their leftover balance will roll over into the next year, up to a maximum of 20 days.

Unpaid Carer’s Leave

If an employee has used up their accrued sick leave, they are entitled to two days of unpaid carer’s leave for each time they need to provide care and support to a member of their family or household. This entitlement is available to all employees who meet the criteria for sick leave entitlement.

How Much Do I Pay In Sick Leave?

As long as an employee has accrued sick leave and validly exercises their right to take such leave in accordance with the Holidays Act 2003, you will need to pay them their relevant daily pay or average daily pay.

A failure or refusal to make these payments will likely amount to a breach of the Holidays Act 2003 and expose your business to potential legal action taken by an employee, including penalties.

What Are My Options If An Employee Takes Too Many Sick Days?

Workplace Sick Leave Policy

Having a clear workplace policy that deals with sick leave can help to set out processes and address a range of issues that may arise in relation to sick leave. 

For example, your policy may require employees to provide evidence, such as a medical certificate, that sick leave has been taken for a legitimate reason.

Importantly, you should avoid requiring employees to produce a medical certificate that gives specific details about any injury or illness, as this may breach their privacy and could even amount to disability discrimination. Under the Holidays Act 2003, the evidence would only need to “satisfy a reasonable person”. 

Your policy could also outline procedures that your employees should follow to notify you, or any relevant staff, when they intend to take sick leave.

Make sure to provide your employees with a copy of your workplace policies and know how to access them at any time during their employment.

Have A Chat To See What’s Up

If one of your employees has taken several days of sick leave, you may want to have a chat with them to see what’s up. This can give your worker an opportunity to raise any concerns that might have with you in a safe and confidential environment. 

For example, they may have a medical condition that requires reasonable adjustments to be made, or they may feel unsafe or uncomfortable at work due to the bullying behaviour of other colleagues. By identifying these issues, you can make sure you are upholding your obligations as an employer.

In addition to this, you can also let the employee know how their absence is affecting the business. By opening up a discussion, you may be able to find out more information that could help you plan for the future.

It also allows you can strengthen your relationships with your employees and, where possible, work together to find mutually beneficial solutions, such as flexible working arrangements. 

Proceed With Caution

Disability Discrimination

As an employer, you’ll probably be familiar with what you can and can’t do in the workplace, particularly in relation to discrimination laws.  All employees are protected from discrimination on the grounds of any disability under the Human Rights Act 1993. This includes:

  • physical or psychiatric illness
  • the presence of organisms in the body causing, or capable of causing, disease or illness
  • malfunction, malformation or disfigurement of a part of the person’s body
  • intellectual or psychological disabilities or impairments
  • any other loss or abnormality of bodily or mental function

If you discipline or dismiss an employee for taking sick leave, you could expose yourself to legal action for disability discrimination.

Protection From Dismissal

Employees are also protected from being unfairly dismissed if they are temporarily absent from work because of an illness or injury.

This means that you cannot dismiss an employee who has taken sick leave if:

  • they have been absent from work for a period of not more than three consecutive days or less than three days if they have provided a medical certificate or other acceptable evidence

If you fire someone because they have taken too much time off, you could face legal proceedings, and even penalties, under the Employment Relations Act 2000.

Need Help?

Working out the best way for your business to respond when an employee is taking a lot of sick leave isn’t always easy, especially when you are a small business. 

Our team of expert lawyers are here to help you strike the balance between upholding your employer obligations and taking care of your employees, with your business’ commercial interests. 

Get in touch with us at [email protected] or on 0800 002 184 for free, no-obligations chat.

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