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Changing Sick Pay Accumulation

You can select whether to accumulate sick pay on either a company wide or per employee basis, or a combination of both. In other words set the company default to the value used by the majority of your staff, then overwrite specific employees as required.

Company Default Accumulation
To change the company default, from the front screen select Setup, then Company Defaults, then Leave Defaults.

Any new employees, or any employee for whom you have not specifically set their sick pay accumulation, will have the value you set as the company default.

Per Employee Accumulation
Select the leave page of the employee maintenance screen. Then select Sick Pay, and change the Accumulate Unused field to the required value. The example shown below uses the company default setting because the value is shown in black. If specifically set, the value would be shown blue.

Legislation

Sick Leave is covered by Section 30A of the Holidays Act 1991 which allows every worker 5 days special leave a year after their first six months employment. An employer is not required to accumulate unused special leave.

The full text of Section 30A is

30A. Entitlement to special leave

(1) Every worker who works for any one employer for more than 6 months shall be entitled in each ensuing period of 12 months for which that worker works for that employer, to a minimum of 5 days special leave in accordance with the provisions of this section.

(2) Special leave under this section may be taken only when---

(a) The worker is sick; or

(b) The spouse of the worker is sick; or

(c) A dependent child or dependent parent of the worker or of the spouse of the worker is sick; or

(d) The worker suffers a bereavement.

(3) Special leave under this section that is not taken in any period of 12 months may not be accumulated for use in any subsequent period of 12 months.

(4) The worker's employer shall, subject to subsection (6) of this section, pay to the worker for each day on which the worker takes special leave under this section an amount equivalent to the pay at the ordinary time rate of pay for the normal number of hours that that worker normally works on that day.

(5) Wherever practicable, a worker who wishes to take special leave on any day must, before that day or not later than 4 hours after the time at which he or she would otherwise be required to start work on that day, notify the employer that the worker wishes to take special leave on that day.

(6) No worker shall be entitled to be paid under this section for any day for which the worker is paid earnings related compensation under the Accident Compensation Act 1982.

(7) For the purposes of this section, a worker suffers a bereavement

(a) On the death of his or her---

(i) Spouse; or

(ii) Parent; or

(iii) Child; or

(iv) Brother or sister; or

(v) Grandparent; or

(vi) Father-in-law or mother-in-law; or

(b) On any other occasion on which the employer accepts that, by reason of the death of any person, the worker has suffered a bereavement.
(8) In this section
``Husband'' includes a man with whom a woman has entered into a relationship in the nature of marriage although not legally married to him; and ``wife'' has a corresponding meaning:

``Spouse'' means the husband or wife of the worker.

This section was inserted by s. 18 of the Holidays Amendment Act 1991.

Links

Relevant Case Law

Employee can go fishing while on sick leave

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Updated: 2nd April 2006
Published: 26th October 1999
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