Major changes could be underway for part-time workers' sick leave as the Government looks at changing to a pro-rata system.
Minister for Workplace Relations and Safety Brooke van Velden has announced the Coalition Government would improve the Holidays Act 2003 to increase certainty and reduce complexity for businesses.
The changes could include switching annual leave from an entitlement system to an accrual system and pro-rating sick leave.
Currently, all employees are entitled to the full 10 days' sick leave, even if they are part-time workers.
"Workplaces that rely on part-time workers are particularly vulnerable to unexpected staffing shortages. To explore this issue further, the exposure draft set for consultation will include a proposed approach to pro-rating sick leave, to better reflect how much an employee works," van Velden said.
The minister said she had heard from businesses that have struggled to adjust to the previous Government's decision to double sick leave entitlements from five to 10 days for all eligible workers.
"Change has been a long time coming, and I know there are many who are frustrated with the Holidays Act. We need an Act that businesses can implement, and that makes it easy for workers to understand their entitlements. We need to do this once and do it right," van Velden said.
The Government also plans to change how annual leave is provided, moving from an entitlement system to an accrual system.
"Shifting to an accrual system for annual leave entitlements is just common sense," van Velden said. "While workers might not notice any change in their entitlements, from a payroll perspective this should make a huge difference. An accrual system should help avoid the complex calculations that regularly stump payroll software and should therefore reduce compliance costs for employers."
The Minister said she wants to get feedback from stakeholders, especially small businesses, on the draft bill.
"We need the Act to be workable for everyone, from the multi-national corporates to the small-town family run restaurants."
However, the Public Service Association Te Pūkenga Here Tikanga Mahi, a union representing thousands of largely part-time workers, is urging the Government to retain the current sick leave provisions.
"This is just unfair and will penalise thousands of women, many of whom work part-time caring for some of the most vulnerable people in our community," PSA national secretary Kerry Davies said.
"It shouldn't matter if you are part-time or full-time - sickness doesn't discriminate.
"We will be advocating strongly to make sure workers who are sick can rest and get well and protect vulnerable clients."
One home support worker, Eleanor Keepa, works around 20 hours a week in Auckland.
She believes if these sick leave changes go ahead, low-income workers would start going to work unwell if they couldn't afford to take leave.
"I could end up going to work sick as I couldn't afford not to work. They tell us not to go to work sick but when you are on a low income you can't afford to take leave."
She added taking annual leave when you are sick would be unfair.
"We all need holidays."
An exposure draft of the Bill will be released for targeted consultation in September 2024.
