Luxon’s Common-Sense Sick Leave Reform Can’t Come Soon Enough

The Taxpayers’ Union is backing Prime Minister Christopher Luxon’s comments on reining in pandemic-era sick leave rules.

Taxpayers’ Union spokesperson Tory Relf says: “The current system is fundamentally unfair, costly, and out of touch with economic reality - especially for the taxpayers footing the bill.”

“Sick leave entitlements disproportionately favour part-time workers, some of whom can claim the same leave as full-timers despite working a fraction of the hours. That’s simply not fair, particularly when those jobs are taxpayer-funded.”

“New Zealand’s already dire productivity is being hammered by skyrocketing absenteeism at huge public cost.”

Nationally, absences jumped from 7.3 million in 2022 to 10 million in 2023. In the public service alone, the average number of sick/domestic leave days rose more than 26 percentsince the introduction of the amended legislation, adding up to 648,347 lost workdays last year - all paid for by the taxpayer.

“And now, according to Southern Cross, staff are increasingly treating paid sick leave as a no-questions-asked entitlement, even when they’re not genuinely unwell,” Relf says.

“New Zealand is already near the bottom of the OECD for productivity. We can’t fix that if we’re asking taxpayers to pay more and get less.”

“Luxon’s idea would be a much-needed reset. Fairer rules, fewer lost days, and better value for event cent of taxpayers' money being spent.”