The Government is reviewing key workplace entitlements, here’s what could change for sick leave and parental leave.
Workplace Relations and Safety Minister Brooke van Velden has flagged that the Government is looking to change how workers accumulate sick leave.
Here is what you need to know:
Current system: all employees—full-time, part-time, or casual—currently qualify for 10 days sick leave if they have worked continuously for six months, and have worked an average 10 hours a week, and at least one hour a week or 40 hours in every month.
Proposed change and impact: The Government is considering a pro-rated approach to sick leave, meaning part-time workers may not have access to the full 10 days sick leave each year.
Minimum of 5 days: Cabinet has indicated employees will retain a minimum of five days sick leave, regardless of the number of hours worked. Ms van Velden also clarified she is not looking to enact an across-the-board reduction in sick days.
Minister’s views:
Ms van Velden has been working on the issue for over a year and confirmed the pro-rated approach was previously agreed to by Cabinet.
Prime Minister Luxon has not ruled out such change, a response which has attracted immediate attention given in 2023 he said he would not be changing the 10-day sick leave entitlement.
The potential sick leave adjustments are part of a broader package of workplace relations changes currently under review.
From 1 July, the maximum weekly rate of paid parental leave will increase from $754.87 to $788.66 per week. The minimum parental leave payment rate for self-employed parents will increase from $231.50 to $235 per week, reflecting the minimum wage increase from 1 April 2025.
These adjustments follow annual increases to paid parental leave under the Parental Leave and Employment Protection Act 1987 (Act), which ensures payment amounts align with average weekly earnings.
Under the Act eligible parents can receive up to 26 weeks of paid parental leave, covering biological parents, adoptive parents and those who have had children via surrogacy. The scheme further extends to individuals who have experienced miscarriage or stillbirth, recognizing the emotional and physical toll such events can take. Women who have acted as surrogates can also access paid leave to support their recovery.
If you have any questions about how these changes may affect you or your business, please contact a member of our employment team.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
