On 24 May 2021, the Holidays (Increasing Sick Leave) Amendment Act 2021 (“the Act”) received the Royal Assent. It comes into force on 24 July 2021. What does this mean?
Effect of Holidays (Increasing Sick Leave) Amendment Act 2021
From 24 July 2021:
- The minimum entitlement to paid sick leave in New Zealand will increase to 10 days for each 12-month period after a qualifying period of either:
- 6 months’ continuous employment; or
- 6 months’ employment where the employee has worked for at least an average of 10 hours a week, and no less than 1 hour a week or 40 hours a month.
- The maximum current entitlement of paid sick leave will remain at 20 days in any year.
- Existing employees will become entitled to the new minimum of 10 days’ paid sick leave on their next sick leave anniversary. Until then, they remain entitled to 5 days’ paid sick leave.
- When an existing employee next may carry over sick leave, they may carry over up to 10 days’ sick leave for a maximum of 20 days.
Examples:
- Bob commenced employment with his current employer on 5 January 2021. His entitlement to sick leave arises six months later, on 5 July 2021, and his sick leave anniversary will be on 5 July each year. Bob will become entitled to 10 days’ paid sick leave in the 12-month period beginning 5 July 2022, as this is his next sick leave anniversary after the Act comes into force.
- Sally commenced employment with her current employer on 1 March 2021. Her entitlement to sick leave arises six months later, on 1 September 2021, and her sick leave anniversary will be on 1 September each year. Sally will become entitled to 10 days’ paid sick leave in the 12-month period beginning 1 September 2021, as this is her next sick leave anniversary after the Act comes into force.
Our employment law team are across these changes. If you need help, contact us today.