Outrage was likely to gear up. How dare this government slash workers’ rights so blatantly? This would be another business-friendly, anti-worker policy.
When asked whether his government was considering reducing sick leave entitlements, Mr Luxon responded that Workplace Relations and Safety Minister Brooke van Velden was looking into it, but that it was a bit premature to discuss at this stage.
Ms van Velden clarified that she was not exploring such a change. Rather, she and officials were focused on pro-rated sick leave, previously agreed to by Cabinet.
This, in itself, sparks opposition, being seen as yet another blow to women and the low-paid, who are more likely to be employed part-time.
At the same time, it seems anomalous that some part-time workers receive disproportionately higher sick leave entitlements than full-time staff.
Under current law, all workers — whether full-time, part-time, or casual — are entitled to 10 days’ sick leave after six months of continuous employment, provided they have averaged at least 10 hours per week and worked a minimum of one hour each week or 40 hours in a month.
The number of sick days increased from five to 10 in 2021, in response to the Covid-19 pandemic. Sick leave can accumulate to 20 days. National did not support the changes.
Some individuals are fortunate in their health or circumstances and seldom need sick leave. Others, particularly those caring for sick children or other dependents, may find that 10 days is insufficient, especially when faced with major illness or injury.
Ten days is generally a reasonable balance, ensuring staff can take paid leave when genuinely ill. Sick employees should stay home rather than risk infecting colleagues. Work or employer pressure, or a "staunch" work culture, too often led to unhealthy attendance at workplaces.
Ideally, sick leave would be unlimited and used appropriately, as successfully implemented in some workplaces and sometimes available for senior staff. However, for most employers and employees, statutory entitlements – on occasions applied flexibly – provide the framework. Staff know where they stand.
Unfortunately, some treat sick leave as an entitlement to be used whether unwell or not. "Mental health days" may be desperately warranted and appropriate, or sometimes an excuse for another day off. Sceptics note the frequency of sick leave taken on Fridays or Mondays — hangovers, anyone? The potential demand for proof of illness or injury after three consecutive days need not be an obstacle.
One Auckland business owner, citing a 400% increase in sick leave costs since the allowance was doubled, supports a switch to a proportional system. Her business employs many part-timers, and she says some staff abuse their entitlement, causing hardship for the business. Someone pays for this one way or another.
The owner said that a worker employed just one day a week yet entitled to 10 days of sick leave every year, could potentially take 20% of their working year off sick.
In reality, such a worker must average at least 10 hours a week to qualify, slightly lowering the potential percentage. For standard full-time workers, potential sick leave equates to roughly 4.5% of their total working days.
The business owner also said that the last thing the business wanted was someone coming in sick and spreading illness.
Ms van Velden might find the practicalities of pro-rating sick leave tricky. Entitlements based on hours worked rather than days could be a fairer approach.
The Holidays Act (2003), following differing interpretations, led to liabilities for billions of dollars of underpaid holidays. Complications multiply when staff do not work ordinary five-day weeks. The legislation harked back to an earlier era from the day it was enacted.
Parallel issues are possible because of the multitude of part-time work options.
In principle, pro-rating sick leave to better reflect an employee’s actual working hours makes sense. However, let us see what the minister will propose as she examines this issue alongside ongoing work to replace the Holidays Act.
