Part-Time Employees’ Sick Leave Entitlements will be reduced with proposed changes to the Holidays Act
Written by Lois McLintock
In June, the Minister for Workplace Relations and Safety, Brooke van Velden, announced the government’s plans to amend the Holidays Act 2003.
The Holidays Act 2003 (“the Act”) governs employee’s entitlements to annual and public holidays, sick leave, bereavement leave, and family violence leave. The Act has long been subject to criticism from both National and Labour governments, and legislation has been drafted in the past in the hope of amending the Act to ensure it is fit for purpose. The previous Labour government proposed a number of changes in 2023, however these were not enacted prior to last year’s election.
The main change proposed relates to sick leave. The government is proposing that a pro-rata system for sick leave be introduced, whereby entitlement to sick leave would be determined by how much an employee works. Currently, all employees are entitled to ten days of sick leave per year, regardless of how many hours they work per week. In fact, part-time employees who have more than one job are able to access ‘double sick leave’, whereby they receive ten days sick leave from each employer
Changes proposed would see part-time employees’ entitlement reduced on a pro-rata basis to reflect the fact that they do not work full-time which would provide some relief to employers, particularly small business owners. Exactly how much their entitlements would be reduced will be up for discussion during the consultation period in September this year when an ‘exposure draft’ of a Bill is expected.
An ‘exposure draft’ is a document not yet in its final form that is intended for discussion and open to amendment. The government is seeking feedback through targeted consultation from a range of stakeholders who will eventually be bound by the Act; in particular those business owners that do not just employ full-time staff.
You can find more detailed information about proposed changes on the Ministry for Business, Innovation and Employment website here https://www.mbie.govt.nz/business-and-employment/employment-and-skills/employment-legislation-reviews/holidays-act-reform