Stress Leave Guide in NZ Workplaces

“Stress leave” is a term many people use when work stress affects their wellbeing and they need time off. In New Zealand there is no separate legal leave called “stress leave”. Instead, people use existing leave entitlements (such as sick leave) or negotiate special arrangements.

Managing stress is not just “nice to have”; it’s part of keeping a safe, healthy workplace. Employers must consider mental health as part of health and safety obligations. If stress leads to illness or incapacity, it becomes a serious workplace issue. Failure to respond properly can lead to grievances, claims, or damage to workplace culture.

Well-handled leave for stress can help with retention, trust, and reputation. But mishandled situations risk legal and relational harm.

In this guide you’ll learn:

• How “stress leave” fits (or doesn’t) into NZ law
• What employers’ obligations are (and how to respond)
• What employees can expect (entitlements, proofs, process)
• Practical steps and a sample template for managing requests

‍

Stress Leave and the Law in New Zealand

No Separate Legal Entitlement

The Employment New Zealand website confirms there’s no standalone legal category called “stress leave.” If an employee’s stress affects their health or ability to work, they can use sick leave instead.
‍

Sick Leave Covers Mental Health

Sick leave applies to both physical and mental health conditions, including stress, anxiety, or burnout. Employees who have worked for at least six months and meet the required hours are entitled to 10 paid sick days per year, which can roll over up to 10 unused days.
‍

Employers can offer more than the legal minimum if they wish, and many do as part of their wellbeing policies.
‍

Workplace Stress and Employer Obligations

Under WorkSafe New Zealand guidance, employers must identify and manage psychosocial risks like workload pressure, bullying, or poor work design. If these issues contribute to stress, they should be addressed quickly to prevent further harm. You can find helpful resources on managing mental health at work through WorkSafe NZ.
‍

If a company’s policy or employment agreement promises additional “stress leave,” that commitment becomes part of the employment contract and must be honoured.
‍

How Employers Should Handle Stress Leave Requests

Start with a Supportive Conversation

When an employee says they are struggling with stress, begin with a genuine conversation. Ask how they are coping, whether workload adjustments could help, or if time off is needed. Early, kind communication often prevents burnout and long absences.
‍

Medical Certificates and Privacy

If the employee takes three or more consecutive sick days, you can request a medical certificate. For shorter absences, employers can also ask for one but must pay the cost. The certificate only needs to confirm that the person is unfit for work; it doesn’t have to include private medical details. 
‍

Leave and Pay

If an employee has available sick leave, they’ll receive paid leave during their absence. If their balance is used up, they can apply for annual leave, unpaid leave, or special discretionary leave if the employer allows.

If stress stems directly from workplace conditions, like bullying or excessive workload, employers should investigate and take reasonable steps to fix the issue.
‍

Returning to Work

A safe return-to-work plan helps employees recover and re-engage. This could include reduced hours, gradual workload increases, or regular check-ins. Document the plan and review it together.
‍

What Employees Should Know

If you’re struggling with stress or anxiety at work, you can take sick leave if you’re unfit to work. You’ll need to have worked at least six months for your employer to qualify.
‍

You’ll usually receive your normal pay while on sick leave, up to your available balance. If your sick leave runs out, you can discuss using annual leave or unpaid leave.
‍

When visiting your doctor, you can simply explain that stress or anxiety is affecting your ability to work. The doctor will decide whether to issue a medical certificate confirming your incapacity; specific details about your condition are not required.
‍

Key Takeaways for Employers and Employees

• Stress leave is not a separate legal entitlement in New Zealand; it’s covered under sick leave.
• Employees must meet the standard eligibility rules to qualify for paid leave.
• Employers should handle requests with empathy, confidentiality, and compliance.
• A medical certificate may be required for absences of three days or more.
• WorkSafe NZ expects employers to manage mental health risks like workload or bullying.
• ACC generally does not cover stress leave, except in limited traumatic cases.
• Open conversations, flexible options, and a supportive culture reduce risk and improve wellbeing for everyone.

‍