As New Zealand faces a resurgence of Covid-19, with wastewater data indicating infections are at a six-month high, employers are being warned against taking a hard line on sick leave. A delicate balance is emerging between business needs and employee wellbeing, particularly as research reveals a significant increase in the number of sick days taken by workers.
The issue is particularly pertinent given recent changes to sick leave entitlements and ongoing economic pressures. Employers need to be acutely aware of their obligations under the Holidays Act and the potential legal ramifications of unfairly denying employees their right to capture time off when unwell. The current climate demands a careful approach to managing absenteeism, one that prioritizes both productivity and the health of the workforce.
Rising Sick Leave and the Impact of Covid-19
Research from last year showed the average number of sick days taken in 2024 reached 6.7, a notable increase from 5.5 in 2022. This represents the highest recorded number of sick days taken, highlighting a shift in employee behavior and a greater awareness of the importance of staying home when sick. Manual workers, on average, took 7.5 days of sick leave, compared to 5.9 days for those in non-manual roles.
The increased awareness of infectious diseases, particularly in the wake of the Covid-19 pandemic, is a key factor. Associate Professor Paula O’Kane, from the University of Otago’s management department, explained that people are now more conscious of the implications of coming to work while unwell, not just for their own health but also for the wellbeing of their colleagues. “by taking sick leave we’re hopefully not disrupting other people within the organisation. Given that of Covid we learned a lot more,” she said.
Legal Risks for Employers
However, this increased awareness and willingness to take sick leave is creating tension with some employers. Simon Schofield, a professional teaching fellow at the University of Auckland’s law school, has observed a trend of employers taking a more stringent approach to sick leave requests. “That poses a number of risks for employers that are too aggressive,” he cautioned.
Schofield highlighted cases where employees were wrongly denied sick leave without a medical certificate, a breach of the Holidays Act which does not require a certificate for absences of fewer than three days. In one instance, an employee who was denied sick leave and subsequently resigned successfully pursued a personal grievance claim for unjustified dismissal. This underscores the importance of employers adhering to legal requirements and understanding their obligations.
The Need for Flexibility and Equitable Policies
Beyond legal compliance, experts are calling for more flexible and equitable sick leave policies. O’Kane pointed out the limitations of the current system, which allows for a maximum accrual of only 20 days’ sick leave. “If you had cancer, for example, and were off for six months, had never taken a day’s sick leave in your life, you’d have 20 days. Someone else could take their 10 days every year and they wouldn’t have that much difference… I reckon we’re not doing enough to accrue sick leave and to enable people to have that whenever something really serious happens.”
The government is implementing changes to how sick leave is calculated, basing accrual on hours worked rather than a set entitlement, aiming to be more proportionate for part-time workers. However, O’Kane believes this is a missed opportunity to create a truly equitable system. She emphasized the changing societal landscape, where traditional support networks are diminishing, and the need for policies that reflect these shifts. “We don’t have that village around us anymore,” she noted. “A lot of people don’t have the grannies there, the granddads there, the neighbours that can help when things go wrong.”
Schofield suggested exploring the Australian model of separating carer’s leave and sick leave, which could address some of the challenges faced by working parents, particularly women who often shoulder the majority of childcare responsibilities.
As employers navigate these complex issues, seeking legal advice is crucial to ensure compliance and avoid potential disputes. The current environment demands a proactive and empathetic approach to managing employee health and wellbeing, recognizing that a healthy workforce is a productive workforce.
Disclaimer: This article provides general information and should not be considered professional medical or legal advice. Always consult with a qualified healthcare provider or legal professional for personalized guidance.
What steps will employers take to balance productivity with employee health in the coming months? Share your thoughts in the comments below.
