Change of Employment Type from Permanent to Casual

Q: I am reaching out to seek clarification on a matter related to sick leave entitlements for employees in our New Zealand office.

We have a casual employee who recently resigned but is now expressing interest in re-engaging with the company after one month. In light of this, we are reviewing our policies regarding sick leave balances for employees in such situations.

I would appreciate your guidance on the following:

  • The continuity of employment concept in New Zealand, particularly in relation to sick leave entitlements when an employee resigns and seeks re-engagement within a certain timeframe.
  • Any specific provisions or considerations under the Holidays Act 2003 that address the accrual or reset of sick leave balances in cases of resignation and rehiring.

A: If an employer terminated and employee employment and rehired them within a month that is counted as continuous employment.  The situation you have stated does not fit that so if a termination pay was paid and they are reemployed this would be a new period of employment and leave would start again.  If you wanted to recognise previous service that would be agreed and not covered under the Holidays Act.

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