PAY OUT ON SICK LEAVE

This paper was published in the NT Suns in May 2017

UNBROKEN SERVICE DESERVES RECOGNITION

Public servants in the NT have a number of benefits attached to their employment. Included are superannuation and leave entitlements. Teachers and those working in schools often commence as supply or relief staff. In most instances superannuation and leave needs are recognised and built into the terms and conditions of their employment. Because of portability, these benefits transfer with them as they move from one school to another.

Over time, those involved with education are usually offered permanent status. Each year, three weeks of sick leave are added to the entitlement of each staff member. This leave accumulates year on year.

Health and family issues (for instance illness of family members) mean that some people need to quite regularly access their leave entitlements. However, there are many who use very little of their leave. It is not unusual for those who have been working for many years to have accumulations of up to 100 weeks of sick leave, that can be used if necessary.

When retiring or resigning from the public service, accumulated annual leave is cashed out to those who are departing. Long service leave that has built up, is generally included in the employee’s final pay package. Depending on circumstances which include the employee’s age, superannuation is either preserved or paid out.

For government employees, unused sick leave is not included in this package. I know of people who have retired or left employment with up to and over 100 weeks of sick leave credits. When they retire this entitlement is forfeited.

Because this leave provision will be lost upon retirement people may think about taking leave they would not usually consider. This would reduce sick leave benefits before employees leave the work force. It would force schools to employ relief staff or short term contract teachers. That would impact on school budgets and children in some classes, the latter because of teacher change.

It may be time to change the way in which sick leave provisions are treated. Paying a percentage of accumulated leave on a pro-rata basis would be fair and equitable. It would also reward those who have judiciously managed their sick leave.
The payment of a day’s salary for every week of accumulated sick leave would be my suggestion. A retiree with 60 weeks of leave would receive a payment equivalent to 60 days of final salary.

This would offer fair and equitable recognition to all those who have been prudent in managing sick leave.

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