Sick Leave adjusted back on termination?

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Cover User
New Zealand
Cover User




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Sick Leave adjusted back on termination?

Hi.  We have an employee that has worked for us for 6 months so is due for 5 days Sick Leave entitlement for the next 12 months.  Question - if they take all their 5 days entitlement in say the 3 months immediately following their entitlement date, and then leave - will a pro-rated percentage of this sick leave which has effectively been 'paid in advance' be deducted from their termination payment as they have only worked for 3 months the after entitlement date and not 12.  Thanks.

Ultimate Partner jenniek
2,427 Posts
Ultimate Partner
New Zealand
Ultimate Partner




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Re: Sick Leave adjusted back on termination?

Hi @DianeZest

Interesting question. However I think the law states that your employee is entitled to 5 days sick at their 6month anniversary - which effectively covers them for the next 12 months. If they take it in all the first month, then that is their entitlement, and they will have no more sick leave entitlement until their next anniversary. You cannot deduct sick leave from a termination pay even if you have paid it in advance - unless you have their permission to do so.


Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ

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