New Zealand annual holidays and sick leave

Annual holidays and sick leave have different qualifying periods and units, with separate rules for taking leave and carrying balances forward.

Annual holidays

At least 4 paid weeks after 12 months of continuous employmentEmployment New Zealand, taking annual holidays

Sick leave

10 paid days per year for eligible employeesEmployment New Zealand, taking sick leave

Initial sick-leave qualifying period

6 months, subject to the work testsEmployment New Zealand, taking sick leave

Statutory sick-leave balance limit

20 days; greater accumulation can be agreedEmployment New Zealand, taking sick leave

Annual holidays are measured in weeks

Employees become entitled to at least 4 weeks of paid annual holidays after each 12 months of continuous employment with an employer. Holidays can be taken in advance if both parties agree. What constitutes a working week depends on the employee's work arrangement; an unpredictable pattern requires an agreed fair and reasonable approach. The entitlement is therefore not automatically a fixed number of hours or days shared by every employee. Employment New Zealand, taking annual holidays (opens in a new tab).

Taking holidays and retaining the entitlement

Annual holiday entitlement remains available until it is taken or paid out. Employers must allow at least 2 of the 4 weeks to be taken together, and holidays must be available within 12 months of entitlement arising. Employers can require holidays in certain circumstances with at least 14 days' notice. Payment is due before the holidays start unless the parties agree to payment in the normal pay cycle. Employment New Zealand, taking annual holidays (opens in a new tab).

Sick leave has a different qualifying period

Eligible employees receive 10 paid sick days each year. Qualification requires 6 months of continuous employment with the same employer, or a 6-month period averaging at least 10 hours a week and involving at least 1 hour every week or 40 hours every month. These are alternative work tests, not a requirement that every employee satisfy both. Sick leave covers the employee's illness or injury and care for a partner or dependant. Employment New Zealand, taking sick leave (opens in a new tab).

Part-time work and unused sick leave

Sick leave is not pro-rated for part-time employees. Unused entitlement carries forward, with a statutory maximum balance of 20 days; a greater balance can be agreed. Unused sick leave cannot be cashed up or included in final pay. Paid sick leave applies to days that would otherwise have been working days, rather than every calendar day during an illness. A balance alone does not make an unrostered day payable. Employment New Zealand, taking sick leave (opens in a new tab).

Scope and the distinction between rights and pay

This is general information about current minimum entitlements. It does not assess an individual employment history, determine an otherwise working day or calculate relevant daily pay, average daily pay, annual holiday pay or final pay. It does not reconstruct a payroll balance or interpret an employment agreement that provides additional leave. Annual holidays and sick leave remain separate entitlements; this guide does not convert either balance into cash or combine them into a single allowance.

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