A late surge in flu cases is putting pressure on workplaces, with some businesses having to find new ways to cover employee absences and keep operations moving.
Speaking on TVNZ’s Business Breakfast, EMA Head of Advocacy and Strategy Alan McDonald said the number of calls from EMA Members about winter illness remained in line with a normal seasonal increase. However, employers were asking more questions about how to manage employees who arrived at work while unwell.
“We’re getting more calls around how to manage the workplace when somebody turns up and you actually don’t want them in the workplace,” McDonald said.
Employers were more conscious of the risk that an unwell employee could spread illness across a team, he said. Employees were also more aware that coming to work while sick could put their colleagues at risk.
McDonald said smaller businesses could face particular pressure when several employees were absent because they had fewer people available to cover essential work.
“We’ve heard of some situations where they’ve run out of staff, so the management are chipping in to get a container or an order out the door,” he said.
Larger businesses generally had more options, including calling on casual and part-time employees to fill staffing gaps.
Current sick leave entitlements
Under the current Holidays Act, eligible employees receive 10 days of paid sick leave each year. This applies to full-time, part-time and casual employees who meet the eligibility requirements.
The entitlement is not currently adjusted according to the number of days or hours an employee works. For example, an eligible employee working three days a week receives the same 10-day annual entitlement as an eligible employee working five days a week.
Employees can carry unused sick leave into the following year, up to a maximum entitlement of 20 days. Employers may also provide more generous sick leave terms through an employment agreement or workplace policy.
The minimum entitlement increased from five to 10 days on 24 July 2021. McDonald said the average amount of sick leave taken had risen following that increase, although by considerably less than the additional five days provided.
What changes in 2028
The Employment Leave Act 2026 will replace the Holidays Act on 6 August 2028.
The new system will change how annual and sick leave are earned, taken and paid. Sick leave will accrue in hours from the first day of employment, based on an employee’s standard hours. An employee will then use one hour of accrued leave for each hour they take off work.
This will produce a proportionate sick leave entitlement for part-time employees rather than giving every eligible employee the same number of days.
As McDonald explained during the interview, an employee working half the hours of a full-time employee would receive a sick leave entitlement reflecting those hours, rather than the same 10-day entitlement available under the present system.
The move to hourly accrual will also allow employees to take part-days as sick leave. This is intended to provide a clearer connection between an employee’s agreed hours and the leave they earn and use.
However, employers must continue following the current Holidays Act rules until the replacement legislation takes effect. They cannot adopt the new statutory rules early, even if their payroll systems are ready.
Employers should begin preparing
Although the changes are two years away, employers will need to consider how the new system affects their payroll processes, employment agreements and workplace policies.
The government has indicated that employers and payroll providers should use the transition period to plan, update and test their systems, and engage with employees about the changes. Some businesses may need to start preparing earlier depending on the complexity of their workforce and payroll arrangements.
For now, employers should ensure they understand their existing sick leave obligations and have a clear, consistent process for managing illness and employee absences.
EMA Members who need advice about sick leave entitlements or managing an unwell employee can contact the EMA AdviceLine on 0800 300 362.