Absenteeism in the Workplace

Absenteeism means when employees regularly miss work without a valid reason or proper notice. It includes unplanned sick days, unauthorised leave of absence, or repeated short-term absences that disrupt work. Unlike approved leave (such as annual or sick leave), absenteeism in the workplace refers to absence patterns that go beyond what’s reasonable or agreed upon.

Absenteeism affects more than just rosters; it impacts productivity, staff morale, and business costs. When a worker is missing often, others must pick up the slack, which can lead to frustration or burnout. For New Zealand businesses, the issue also ties into legal obligations. Employers must handle employee absenteeism fairly, following the principles of good faith and compliance with the Employment Relations Act 2000. Poorly managed absences can cause misunderstandings, reduce team trust, and in some cases, lead to personal grievances or higher staff turnover. We’ve seen this happen in Auckland businesses where unclear attendance rules left managers unsure how to respond. Once they introduced a clear absenteeism policy and early check-ins, both attendance and morale improved significantly.

In this guide you’ll learn:

• How to recognise absenteeism and what it means for your workplace
• What New Zealand law says about employee absence and sick leave
• Steps to manage and reduce absenteeism fairly
• When termination may be appropriate
• How to build a positive culture that keeps staff engaged and present

Understanding Absenteeism at Work

Absenteeism at work refers to an employee being absent without approval or without a legitimate reason. It’s different from planned or legally entitled leave. Frequent unexplained absences, especially around weekends or holidays, often signal a deeper problem. In contrast, presenteeism and absenteeism are two sides of the same issue; showing up sick or burnt out can hurt productivity just as much as staying home.
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Common Causes of Absenteeism

There isn’t one main cause of absenteeism. Often, it’s a mix of factors such as stress, burnout, health issues, or personal commitments like childcare. Other times, the cause is workplace-related;  poor communication, lack of motivation, or unclear expectations about attendance. Employers who take time to understand the root cause often find that small improvements, such as flexible hours or wellness support, make a big difference.
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When Absence Becomes Excessive

New Zealand law doesn’t set a specific number of “allowed” absences before action can be taken. What counts as excessive absenteeism depends on the pattern, frequency, and impact on the business. If absences are frequent and unexplained, employers can request a medical certificate after three or more consecutive days away. Repeated misuse of sick leave or unauthorised absence from work should be discussed promptly and documented properly.
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Legal Rights and Employer Responsibilities

Under New Zealand’s Holidays Act 2003, eligible employees receive 10 paid sick days each year after six months of continuous employment. Unused days can carry over to a maximum of 20. Employers must pay what the employee would have earned had they worked, including allowances or overtime. Proof of illness may be requested for absences of three or more days.
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Employers must always act in good faith when managing absenteeism. This means following a fair process, giving the employee a chance to explain, and considering any medical or personal circumstances. Dismissing someone purely because they were sick is not allowed and could lead to a personal grievance claim. In cases of ongoing health issues or long-term absence, employers may explore medical incapacity; a fair process that determines whether the employee can still perform their role or if alternative duties are possible.
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If an employee stops coming to work without any contact, this might be treated as abandonment of employment, but only after reasonable attempts to reach them have been made.
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Simple Action Plan for Absenteeism at Work

• Track attendance and identify patterns
  Detect potential issues early.
• Talk privately with the employee
  Understand the reasons behind the behaviour and offer appropriate support.
• Document discussions and any agreements made
  Maintain a clear and accurate record.
• Issue a fair written warning if required
  Set clear expectations and outline possible consequences.‍
• Review progress or consider next steps
  Ensure any decisions are fair, reasonable, and well supported.
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Key Takeaways for Employers and Employees

• Set clear expectations about attendance and communicate early when absenteeism becomes a concern.
• Keep written records of absences, discussions, and agreed actions to ensure fairness and consistency.
• Follow a lawful and transparent process before issuing warnings or considering termination.
• Encourage open communication so employees feel safe to discuss health or personal challenges affecting work.
• Use leave entitlements responsibly and provide medical proof when required.
• Promote a positive workplace culture that values wellbeing, flexibility, and accountability.
• Take shared responsibility for creating a reliable, respectful, and supportive environment where everyone can perform at their best.

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