Employers told to use law over fake sickies

The Holidays Act contains ways for employers to combat workers believed to be exploiting its sick leave provisions, and Labour Minister Ruth Dyson's office last night urged employers to use them.

The recommendation comes after it was revealed on Tuesday that some meat industry workers had set up their own unofficial sick day rosters to take advantage of provisions in the Holidays Act that allow employees to take sick leave, but still qualify for the same rate they would have received had they gone to work.

A meat industry report claims sick leave among workers rose 39 per cent in the year to March last year compared with the previous 12 months.

Labour Minister Ruth Dyson was not available for comment last night, but a spokeswoman said the minister was due to see meat industry representatives next week, and the matter was likely to be discussed then.

However, the spokesman said: "There are, under the act, ways for employers to take action if they think sick leave is being abused, and (Ms Dyson) would encourage employers to do that."

The Holidays Act 2003 states:

"An employer may require an employee to produce proof of sickness or injury for sick leave taken ... if the sickness or injury that gave rise to the leave is for a period of 3 or more consecutive calendar days, whether or not the days would otherwise be working days for the employee."

Employers can also seek proof of illness within the three-day period if they believe the illness is being faked.

But Engineers, Printers and Manufacturers Union secretary Andrew Little said skyrocketing wage bills for employers were more likely the result of a readjustment in who foots the bill for sick pay, rather than a sign that workers were fiddling the Holidays Act.

Mr Little said last night rising wage bills were "a predictable one-off spike".

Business New Zealand chief executive Phil O'Reilly warned yesterday the cost of workers' Holidays Act rorts would trickle down to the wider economy as employers scaled back work hours to control climbing wage bills.

He said the problem was mainly confined to the industries that were "not nine-to-five", and which required shift and weekend work.

"From conversations we are having, it is clear that this is a major issue for employers," Mr O'Reilly said.

But Mr Little said that workers had for too long carried the cost, by losing allowances and other payments when forced to call in sick.

He said many workers had previously come to work when ill, as they could not afford to lose allowances, and the Holidays Act now allowed them to stay home without fear of being docked.

"It was predictable there would be an increase in the number of sick days people are taking."

Mr Little was "not convinced" exploitation of the act was widespread, but agreed the practice was unacceptable.

National's associate industrial relations spokeswoman, Paula Bennett, called on the Government to deny the Holidays Act was to blame for a 39 per cent increase in sick leave for some industries.

She said escalating wage bills for employers would be "an inevitable consequence" of a poorly-designed policy that provided for relevant daily pay, including bonuses and overtime, even when an employee was sick.

The effects would eventually slow the economy as businesses were forced to pay for non-productive staff who were not turning up for work, she said.