From 24 July 2021, employee sick leave entitlements increase from 5 days per year to 10 days per year.
The extra five paid days becomes available when they reach their next entitlement date – either after reaching 6 months’ employment or on their sick leave entitlement anniversary (12 months after they were last entitled to sick leave), then each 12 month anniversary thereafter.
For an employee who already receives 10 days sick leave per annum, there is no change.
Any employee can only accrue / carry over unused sick leave up to the maximum of 20 days per year. If the employment agreement stipulates a more beneficial cap to unused sick leave, e.g. 30 days, the employer has to abide by that, there is no need to increase this as it is already more than the legally prescribed amount.
Here’s some scenarios:
For current employees’ whose sick leave anniversary falls before or on Friday 23 July their sick leave entitlement is only five days this year, and will receive 10 days on their anniversary in 2022, and annually thereafter.
For currently employees’ whose sick leave anniversary falls on or after Saturday 24 July, they will receive 10 days sick leave this year, and then annually thereafter.
If a new employee starts with an employer before or on 23 July 2021, after six months of employment, 23 January 2022 the employee will be entitled to 10 days paid sick leave, and then annually thereafter.
If a new employee starts with an employer on or after 24 July 2021, after six months of employment, 24 January 2022, the employee will be entitled to 10 days paid sick leave, and then annually thereafter.
General notice of change
Because this is a legislative change to entitlements, there is not necessarily a need to sign variation agreements to reflect this with all staff, but you do have to abide by the new laws. A general notice of the change informing all staff of this entitlement is a sign of good faith and recommended.
Updated and corrected 15 July 2021.