Holidays Act 2003 — sick leave entitlements
Sick leave in New Zealand — entitlements and employer obligations
Employees are entitled to 10 days sick leave per year after their first 6 months. Here are the rules for taking sick leave, requesting proof, and managing illness at work.
📋 Holidays Act 2003 — sick leave provisions
Sick leave entitlement
10 days per year after 6 months
After 6 months of continuous employment, employees are entitled to 10 days of paid sick leave per year. Unused sick leave can carry over — up to a maximum of 20 days (i.e., up to 2 years' worth). After the 6-month anniversary, sick leave renews each year on that anniversary date.
When can sick leave be taken?
Three permitted reasons
- When the employee is sick or injured
- When a spouse or partner of the employee is sick or injured
- When a person who depends on the employee for care is sick or injured
The third category is broad — it covers children, elderly parents, and any other dependant. Employees are not required to exhaust other arrangements before using sick leave for a dependant.
Notification requirements
Employee must notify as soon as practicable
The employee must notify the employer as soon as practicable that they will be taking sick leave. Your employment agreement can specify a process — for example, calling before a certain time or notifying a specific person. The employee does not need prior approval to take sick leave.
Proof of illness
Employer can ask for a medical certificate
An employer can ask for a medical certificate (doctor's note) to confirm the sick leave is genuine. However:
- For absences of 3 days or less, the employer must pay for the certificate if they require one
- For absences longer than 3 days, the employee can be required to pay for their own certificate
- Asking for a certificate every single time an employee takes a single day can be seen as unreasonable in some circumstances
Pay during sick leave
Relevant daily pay or average daily pay
Sick leave is paid at either the employee's relevant daily pay (what they would have earned that day) or their average daily pay (total gross earnings over the previous 52 weeks ÷ days worked). Employers can choose which calculation method to use for each absence.
Sick leave and annual leave
Cannot be required to use annual leave instead of sick leave
If an employee becomes ill during annual leave, they can request that those days be treated as sick leave instead — if they have sick leave available and a medical certificate if required. The employer cannot prevent this.
Source: Holidays Act 2003. Employment NZ:
employment.govt.nz. This is general information, not legal advice.
Frequently asked questions
Can we cash up sick leave?
No. Unlike annual leave, sick leave cannot be cashed up or paid out on termination. Any unused sick leave simply lapses when the employment ends.
What if we suspect an employee is misusing sick leave?
You can require a medical certificate for future absences. You can also investigate suspected dishonesty — but follow a fair process before taking any disciplinary action. Requiring a certificate for every single day's absence may be seen as unreasonable if there's no genuine basis for suspicion.
Do casual employees get sick leave?
Casual employees who have worked an average of at least 10 hours per week for 6 months are entitled to sick leave. Pure casuals with irregular, infrequent work may not qualify — it depends on the pattern of work.
What about long-term illness — what happens when sick leave runs out?
When sick leave is exhausted, the employee can agree to take unpaid leave or use annual leave. For long-term illness, you may eventually need to consider medical incapacity — a process under the Employment Relations Act with its own procedural requirements.