Can I Take Sick Leave During Annual Leave in New Zealand?

No — you cannot take sick leave during annual leave in New Zealand. Once annual leave has been taken, it remains annual leave regardless of whether you became ill during that period. However, if you become sick before your annual leave starts, you have the right to postpone the leave and use sick leave instead.

That distinction — before versus during — is where the confusion lies. New Zealand’s Holidays Act 2003 provides clear rules, but they are frequently misunderstood by both employees and employers.

Key Takeaways

• Once annual leave is taken, it cannot be reclassified as sick leave under the Holidays Act 2003.
• If you are sick before your annual leave starts, you can postpone the leave and use sick leave instead — you must notify your employer before the leave begins.
• Public holidays that fall during annual leave are treated as public holidays, not annual leave — you get a substitute day or an alternative holiday if you would have otherwise worked.
• Employers cannot force you to use annual leave instead of sick leave if the sick leave arises before the annual leave period.

The Core Rule: Annual Leave Is Annual Leave

Under the Holidays Act 2003, annual holidays (annual leave) and sick leave are separate entitlements. Once you have begun a period of annual leave, the days count as annual holidays even if you become ill during that period.

This means:

• You do not get those days back from your annual leave balance.
• You do not get paid sick leave for the days you were ill during annual leave.
• Your annual leave balance is reduced by the full period originally booked.

The logic is straightforward: you chose to take annual leave, and the leave was granted for the purpose of time away from work. That purpose is fulfilled whether you spend the time on a beach or in bed with the flu.

The Exception: Sickness Before the Leave Starts

The Holidays Act provides a specific remedy when you become ill before your annual leave is due to begin. Section 39 allows you to postpone annual holidays if you are sick on a day that would otherwise be a working day and the annual leave has not yet started.

To use this right:

1. You must be ill before the annual leave starts — not during it.
2. You must notify your employer that you are sick and wish to postpone the annual leave.
3. You must provide evidence of your illness if the employer requests it (a medical certificate or similar).
4. The annual leave is then rescheduled to a later date.

This right protects employees who would otherwise lose annual leave to an illness that struck just before their holiday. It does not help employees who become ill during the leave itself.

Public Holidays During Annual Leave

One area where the Holidays Act does intervene is public holidays. If a public holiday falls during your annual leave, it is not counted as annual leave — it is treated as a public holiday.

Under Section 45 of the Holidays Act:

• If the public holiday falls on a day that would otherwise be a working day for you, it does not deduct from your annual leave balance.
• If you would have worked on that day (and are not on annual leave), you are entitled to an alternative holiday (day in lieu) if the public holiday is one on which you would have worked.

For example, if you take two weeks of annual leave over the Christmas period and Christmas Day falls on a Tuesday (one of your working days), your annual leave is reduced by only 9 days, not 10. The public holiday sits outside the annual leave count.

What If the Employer Refuses to Postpone?

If you notify your employer before the annual leave starts that you are ill and wish to postpone, and the employer refuses, the employer is in breach of the Holidays Act. The employee can raise a personal grievance or lodge a complaint with Employment Relations Authority.

However, the employer is entitled to request evidence of the illness. If the employee cannot provide evidence, the employer may have grounds to decline the postponement. A medical certificate from a doctor confirming the illness and its expected duration is usually sufficient.

Comparison: New Zealand vs Australia vs UK

	New Zealand	Australia	UK
Can annual leave be reclassified as sick leave during the leave?	No	No	No
Can you postpone annual leave if sick before it starts?	Yes — Holidays Act s.39	Varies by award/contract	Varies by contract
Public holidays during annual leave	Not counted as annual leave	Not counted as annual leave	Not counted as annual leave
Evidence required	Medical certificate if requested	Medical certificate if requested	Self-certification for 7 days

The position is broadly similar across all three jurisdictions: once annual leave is taken, it stays taken. New Zealand’s specific statutory right to postpone is somewhat more generous than the UK position, where postponement depends on the contract.

Worked Example: When the Rule Bites

Aroha is a full-time administrator in Auckland. She has booked annual leave from Monday 14 July to Friday 25 July (10 working days). On Saturday 12 July, she wakes up with severe gastro and calls in sick.

Because Aroha is sick before her annual leave starts, she can notify her employer that she is ill and wishes to postpone the leave. Her employer should reschedule the annual leave to a later date and process the sick leave for the days she is actually ill.

If Aroha had waited until Monday 14 July — the first day of her annual leave — to call in sick, the position changes. The leave has already begun. Even though she is genuinely ill, the days count as annual leave and she cannot recover them.

The timing is everything. Employees should notify employers before the annual leave starts, not on the first day.

What Employers Should Do

Employers should:

1. Include the postponement right in the annual leave policy, so employees know they can postpone if they fall ill before the leave starts.
2. Accept medical certificates as sufficient evidence for postponement, without requiring a specific form.
3. Reschedule the leave promptly, updating the payroll system and notifying the employee of the new dates.
4. Not deduct sick leave for days that are already classified as annual leave — the entitlements are separate.
5. Track public holidays that fall within annual leave periods and adjust the balance accordingly.

How Leave Balance Helps

Leave Balance applies New Zealand’s Holidays Act rules automatically — public holidays during annual leave are excluded from the balance, and the system supports leave postponement when an employee provides medical evidence before the leave starts. For multi-country employers, the system applies the correct rules per jurisdiction.