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New Zealand - Sick Leave for NZ Employees

Set up Sick Leave for New Zealand Employees

Updated over 2 months ago

In New Zealand, employees (including part-time and casual employees) are entitled to 10 days paid sick leave a year, after the first 6 months of continuous employment and another 10 days sick leave for each 12-month period after that, if:

  • they have six months’ current continuous employment with the same employer, or

  • they have worked for the employer for six months for:

    • an average of 10 hours per week, and

    • at least one hour in every week or 40 hours in every month.

Unused sick leave is automatically carried over to a maximum of 20 days leave unless more is provided for in the Employment Agreement.

For more information, refer to Sick leave entitlements - Employment New Zealand.

Due to the above, Sick Leave is generally set up as a Grant of 10 days. The first Sick Leave class will grant the initial 10 days at the end of 6 months employment. Grants will then occur every 12 months. Employees will need Contract Hours for the leave to be granted.

Note: With this setup, employees will have an Entitlement Date that is six months after their hire date. As the total leave entitlement (10 days of leave) is granted, the employee won't have pro-rata dates or hours.


Set up Sick Leave

To set up sick leave based on the above description:

Go to Payroll, Maintenance, Leave, Sick Leave.

Sick Leave for the first six months

  1. Click Add.

  2. Enter a Code and Description.

  3. Select Grant.

  4. Tick Apply Costing Split if applicable. If you tick this, you will need to select Hour Types, Other Leave Reasons, User Defined Leave and Additions to use the costing splits.

  5. Under Entitlement: Maximum each Period enter:

    • Entitlement as 10

    • Units as Days

    • Number as 6

    • Per Period as Months

  6. Select Accumulate Leave Entitlements from year to year as Accumulate Entitlements.

  7. Click OK.

Sick Leave for next 12 Months

  1. Click Add.

  2. Enter a Code and Description.

  3. Select Grant.

  4. Tick Apply Costing Split if applicable. If you tick this, you will need to select Hour Types, Other Leave Reasons, User Defined Leave and Additions to use the costing splits.

  5. Under Entitlement: Maximum each Period enter:

    • Entitlement as 10

    • Units as Days

    • Number as 1

    • Per Period as Years

  6. Enter the Maximum Accrual. This is the total number of hours an employee can carry over. E.g. 160 hours (8 hours per day x 20 days)

  7. Select Accumulate Leave Entitlements from year to year as Accumulate Entitlements.

  8. Click OK.

  9. Edit the Sick Leave class for the first 6 months.

  10. Select the Sick Leave class for 12 months as the Next Leave.

  11. Click OK.

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