Updated: 2 June 2021
The Holidays (Increasing Sick Leave) Amendment Bill was passed by Parliament on 19 May 2021, amending the Holidays Act. It specifies that employees will receive 10 days sick leave a year (rather than 5 days). The Bill became law once it received Royal assent, which happened the following week. However, the changes do not take effect until 24 July 2021 (2 months after Royal assent).
Employees typically do not have an entitlement to sick leave during their first 6 months with a particular employer. After 6 months, they received an entitlement to 5 days sick leave, and on their employment anniversary they received another 5 days. NOTE: each employee’s anniversary date will be different
Under the new system, if that 6-month date arises for a new employee after the amendment has taken effect (24 July 2021), they will receive an entitlement to 10 days sick leave.
Here are some examples of how the changes work, depending on the employee’s start date:
- John has been employed with ABC Ltd since 9 January 2021. He becomes entitled to sick leave on 9 July 2021. He will be entitled to only 5 days, because the new law won’t yet be in force. On his next sick leave anniversary, 9 July 2022, he will be credited with 10 days sick leave.
- Sally has been employed with XYZ Ltd since 9 February 2021. She becomes entitled to sick leave on 9 August 2021. She will be entitled to be credited with 10 days sick leave entitlement, because the new law will be in force.
- Mary has been employed with 123 Ltd since 9 January 2015, and received her first entitlement to 5 days’ worth of sick leave after 6 months, on 9 July 2015. She becomes entitled to further sick leave on 9 July every year (the anniversary of her first entitlement to sick leave). She will be entitled to only 5 days on 9 July 2021, because the new law won’t yet be in force. On her following sick leave anniversary, 9 July 2022, she will be credited with 10 days sick leave.
- Bob has been employed with 789 Ltd since 9 February 2015. He becomes entitled to further sick leave on 9 August every year (the anniversary of his first entitlement to sick leave, which was on 9 August 2015). He will be entitled to be credited with 10 days sick leave entitlement on 9 August 2021, because the new law will be in force.