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Sick of Sick Days?

Sick Leave

18 Oct 2023 (Last updated 16 Jan 2025)

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Overuse of sick days amongst employees can be hard to manage and can also reveal a deeper lying issue, so it’s important for employers to be on top of recurring sick days. So, here’s some of the best ways to minimise sick leave in your business.

Keep a record

Record keeping of all types of leave is a simple way to track increased use of sick days and track underuse of annual leave. For example, if an employee has taken five sick days in month, but spread over the month, it may not seem out of the ordinary unless a record is kept. However, these sporadic sick days across a month period can ring alarm bells for an employee’s engagement at work, or even that there is a broader issue.

Likewise, it is vital that employees take regular annual leave for their own well-being. As an employer, if you know via your record keeping that an employee has a good deal of accrued annual leave, you can speak with them and suggest they take some time out.

It is also a legal requirement under the Employment Relations Act 2000 to ensure that records of sick leave and annual leave are kept.

Doctor’s certificates

People get sick and they need to be able to take time off work when they are sick. But employers also need to be able to ensure that sick leave is not overused and abused.

An effective method is to require that employees produce a doctor’s certificate for all sick leave taken, irrespective of the amount of days. This drives accountability for sick leave taken and makes the process more transparent and should be used across the workplace.

There are specific requirements requesting a medical certificate under the Holidays Act 2003. These only apply where an employee has access to paid sick leave. You should also ensure that your policies and procedures specify when you may request a medical certificate.

Further, in circumstances where an employee is taking too many sick days, implement the requirement that they call their manager when sick rather than text or email. Again, this process increases the level of accountability on the employee.

Utilise Peninsula’s Sickness Certification form

Peninsula provides its clients with a Sickness Certification form which, if used correctly, can limit sick leave. The form asks employees whether they consulted a doctor, details of their illness, and why they chose not to visit a doctor if this is the case. Employees complete the form upon their return to work and is a great example of a formal process that takes the flippancy out of taking sick days.

The cost of sick leave can be critical to a business – loss of productivity, the cost of replacement staff if needed and the impact on the culture of the business are key reasons to stay on top of it.

For help managing sick leave, or any other type of leave, contact Peninsula's FREE Advice Line on 0800 459 907.

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Sick Leave

How Much Sick Leave is too Much?

According to the Wellness in the Workplace report produced by BusinessNZ, employee sick days cost the New Zealand economy approximately $1.26 billion in lost productivity every year. In addition, employers and business owners will express other implications sick days have on their business such as, additional workloads on remaining staff, inefficient service, and missed deadlines. Considering this, employers often ask ‘how many sick days are too many’ and ‘how do I reduce the number of sick days my employees are taking?’ However, every workplace is different. This means that what is considered an acceptable amount of sick leave in one workplace may be perceived as too much in another. Under New Zealand employment regulations, employees are entitled to ten days of sick leave per year, but only after they have completed six months of continual employment with their employer. It is important to note, all employees are entitled to this leave and it is not pro-rated, meaning even part-time employees have the full privilege. Sick leave will also accumulate over consecutive years so that any unused leave from one year will carry over to the next, and so on. The maximum amount that can accumulate is 20 days. Due to this entitlement being available to all workers, as an employer, you need to be careful in how you manage those who may seem to be taking advantage of their sick leave. It is best practice to ensure you are keeping a sick day register, which allows you to monitor when employees take their leave. This can then allow you to determine if specific patterns arise such as sick leave consecutively being taken on a Monday or following a public holiday. By doing so, you will have solid reason to confront your employee. Employees can take a sick day for many reasons. Aside from a genuine sickness, if an employee takes sick days regularly, try having an informal conversation with them to understand if something is amiss at work. Bullying, excessive workload, harassment or even feelings of non-accomplishment can impact employees causing them to miss work. Implementing a sick leave policy can also help prevent the number of sick days employees take. When forming or redefining your sick leave policy, we highly recommend the inclusion that you reserve the right to request a medical certificate for each day of sick leave taken, even if only one day is taken off, bearing in mind that you will need to pay the reasonable costs of obtaining such certificate if the employee is sick for less than three days. Make it a requirement that employees call you or their line manager directly when sick by no later than one hour before their shift commences. Thereby removing email, text message or second hand notifications. This ensures they must speak to you directly when wishing to call in sick, and can act as a deterrent to employees calling in sick for illegitimate reasons. Finally, hold a return to work interview whereby you (or the direct line manager) meets with the employee once they return to work to determine if they are fit for normal duties. By implementing a strict policy with the above mentioned inclusion, it is likely employees will not take liberties and will only use sick leave when it is necessary. If you do not have a sick leave policy in place and would like to introduce one, or would like to make amendments to your current one, you must allow employees to consult on it before implementation. Ensure all employees are made aware of the policy and are given a copy to read and understand. Best practice includes receiving signed copies back from each employee, as this ensures they have read and understood all aspects of the policy and gives you grounds for disciplinary action if it is not adhered to. As the leading workplace relations specialist, Peninsula can assist with any queries you may have surrounding sick leave and any other employee entitlements.

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