Sick leave needs to be factored into your pricing, especially as unfortunately, some staff will abuse sick leave.
If you have a large number of staff your costs should include all allowable sick days and should be included in your budgeting.
Also sick days are going to increase as a result of the doubling of the sick leave entitlement to 10 days.
Sick leave entitlement of 10 days
You need to calculate how much it is going to cost you for sick entitlement of 10 days and try to factor it into price negotiations, otherwise it will come straight out of your profit.
Those involved in labour-intensive industries such as cleaning, will also need to consider the implications of the 10 days sick leave.
When does the extra 5 days of sick leave start?
You will have to start granting the extra five days two months after the legislation is enacted, which is expected to be about mid year.
Each time an employee gets to their anniversary of sick leave entitlement, it will go up to 10 days.
If you need help with budgeting to ensure that you include sick leave entitlements and all other costs – give us a call.