The Holidays Amendment Bill that increases the amount of paid employee sick leave from 5 to 10 days per year passed its final reading on 19 May 2021.
The law change was one of Labour’s 2020 election promises and was introduced the same time as the Covid-19 pandemic. It highlighted a need for people for have adequate sick leave. It also brings New Zealand more into line with many other OECD countries which offer a higher number of sick days to employees.
The new legislation comes into effect on 24 July 2021. Employees will get five extra sick days when they reach their next entitlement date - either after reaching 6 months employment or on their sick leave entitlement anniversary (12 months after they were last entitled to sick leave).
Employees who already get 10 or more sick leave days a year will not be affected by this change.
There will be no changes to an employee’s entitlement to roll-over their sick leave each year and the maximum amount of unused sick leave that an employee can be entitled to will remain at 20 days.
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This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
