Paid Sick Leave

Paid sick leave is an employment benefit that enables employees to take time off due to illness or medical care while retaining their regular pay. It supports employee well-being and reduces the spread of illness within the workplace.

How Paid Sick Leave Works

Policies for paid sick leave usually specify:

  • Eligibility – based on employment duration or hours worked.
  • Accrual rates – how sick leave is earned over time.
  • Usage – procedures for requesting leave and providing documentation.

Paid sick leave benefits both employees and employers by encouraging timely recovery and reducing presenteeism (working while sick).

Examples of Sick Leave Policies by Country

  • United States: Laws vary by state. Some states and cities mandate paid sick leave; others leave it to employers. The accrual and usage rules differ significantly.
  • Australia: The National Employment Standards provide a minimum entitlement to paid sick leave, usually accruing progressively with service.
  • New Zealand: Employees are entitled to a set number of paid sick days under the Holidays Act, with unused leave carried over annually in some cases.

Best Practices for Employers

Employers should:

  • Develop a clear, documented sick leave policy.
  • Communicate policies openly to employees.
  • Encourage employees to take sick leave to avoid spreading illness.
  • Monitor sick leave trends to manage workforce health effectively.

Paid Sick Leave vs. Short-Term Disability

Paid sick leave generally covers temporary illness or injury, often for shorter durations. Short-term disability benefits provide income replacement for extended absences due to serious illness or injury. Employers should clearly distinguish these benefits in their policies to prevent confusion and ensure compliance with legal requirements.