Sick leave extension: what you need to know

Tuesday, 1 December 2020

Bill before Parliament would double minimum sick leave to 10 days a year.

The Government has introduced a bill to double the legal minimum of paid sick leave to 10 days a year.

The Holidays (Increasing Sick Leave) Amendment Bill was Labour’s campaign promise, selling the policy as crucial for the Covid-19 recovery and long overdue.

What reforms have been proposed and when could they be introduced?

The Government expected to have the law changed by the middle of next year, with changes coming into effect two months after it passes.

* Companies refusing to apply for Government sick leave subsidy to cover workers

* Investigation into 'Wild West' student accommodation sector

Workplace Relations and Safety Minister Michael Wood said workers would not suddenly have more sick leave, with the entitlement coming into effect depending on when they were employed, allowing businesses time to prepare.

The Government expected to have the law changed by the middle of next year.

Who qualifies for the increase in sick leave?

The current minimum entitlement is five days a year.

Under the proposed extension, new staff will be entitled to 10 days’ sick leave after their first six months.

Workers who have already worked for at least six months, will have their leave increased to 10 days when they reach the anniversary of the first time they completed six months.

Will the changes affect part-time workers?

Changes to sick leave will not increase the maximum amount that can be stockpiled, keeping that limit at 20 days.

Under the Holidays Act, workers 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 a week, including at least one hour a week or 40 hours a month.

Sick leave is not pro-rated in any way. If you only work three days a week, you still have the same sick leave entitlement as someone working five.

Will there be an extension to how much leave can be stockpiled?

The total amount of sick pay that can be saved will remain at 20 days under the new amendments.

Will the changes have affect contractors?

Contractors do not get the same protections as employees, including sick leave.

As a result it is unlikely that the sick leave extension will affect contractors.

The Government has indicated that the bill will be referred to a select committee process.