Sick leave

Some studies show that the cost of losing an employee (which can include advertising for, interviewing, and training a replacement) is often greater than the cost of providing sick days to retain existing employees. One brief suggests the average cost of turnover is 25 percent of an employee's total annual compensation.[18]

Presenteeism costs the U.S. economy $180 billion annually in lost productivity. For employers, this costs an average of $255 per employee per year and exceeds the cost of absenteeism and medical and disability benefits.[19] For workers in the foodservice industry, one analysis found that foodborne illness outbreak for a chain restaurant – including negative public opinion, which affects other operations in a metropolitan area – can be up to $7 million.[20]

The United States Bureau of Labor Statistics has said that the average cost of sick leave per employee hour worked is 23 cents and the cost per service worker is eight cents.[21] Additional research by advocates for a policy has suggested that paid sick days could lead to savings of $1.17 per worker per week for employers.[22]

Many studies have looked at the economic well-being of the city of San Francisco after they passed their sick leave policy in 2004.[23] The research finds that (including other external factors) San Francisco outperformed its neighboring counties in terms of job growth in the years after its sick leave program went into effect – even during the recent recession.

The United States does not require that employees have access to paid sick days to address their own short-term illnesses or the short-term illness of a family member, though some states and local jurisdictions do. (FMLA mandates only unpaid leave and accrued vacation.)

A 2009 analysis from the Bureau of Labor Statistics (BLS) found that around 39 percent of American workers in the private sector do not have paid sick leave.[25] Around 79 percent of workers in low-wage industries do not have paid sick time.[26] Most food service and hotel workers (78 percent) lack paid sick days.[27]

A 2008 survey reported that 77 percent of Americans believe that having paid sick days is "very important" for workers.[28] Some workers report that they or a family member have been fired or suspended for missing work due to illness.[2]

A 2020 paper found that requiring paid sick leave in the U.S. likely increased overall well-being.[29] When paid sick leave is required by law, workers tended to take two more days off work each year.[29]

The U.S. requires unpaid leave for serious illnesses through the Family and Medical Leave Act (FMLA). This law requires most medium-sized and larger employers to comply and, within those businesses, covers employees who have worked for their employer for at least 12 months prior to taking the leave.[30]

Since 2006 and as of 2018 ten states, Washington D.C., and an increasing number of other cities have implemented some form of paid sick leave.

In November 2006, the voters of San Francisco passed a ballot initiative making the city the first in the country to guarantee paid sick days to all workers.[33]

In March 2008, the Washington, D.C. Council voted unanimously to pass legislation guaranteeing workers paid sick time. The law does not cover tipped restaurant workers or workers in the first year of employment.[34] The D.C. law was also the first in the United States to include paid "safe" days for victims of domestic violence, sexual assault, or stalking.

On July 1, 2011, Connecticut Governor Dannel P. Malloy signed into law Public Act No. 11-52 which made Connecticut the first state to mandate paid sick leave. The Act, which only narrowly passed through Connecticut's Senate (18–17) and House of Representatives (76–65), took effect on January 1, 2012, and requires employers to allow their "service workers" to earn one hour of paid sick leave for every 40 hours worked, capped at a maximum of 40 hours per year. The Act applies to the "service workers" of employers with 50 or more employees in Connecticut during any single quarter in the previous year.[35]

On September 8, 2014, California Governor Jerry Brown announced that he would sign the Healthy Workplaces, Healthy Families Act of 2014 to require employers to offer paid sick leave to employees. California would become the second state after Connecticut to require paid days off for ill employees.[36][37]

On November 4, 2014, Massachusetts voters approved "Question 4", a ballot measure mandating sick pay for all part-time and full-time workers at firms with more than 11 employees. The law was passed 59–41 and came into effect July 1, 2015.[38]

On June 12, 2015, the Oregon legislature passed OL 537, 2015 mandating sick pay for all workers at businesses with at least ten employees (six for cities with more than 500,000 inhabitants, e.g. Portland) effective January 1, 2016.[39]

Sick leave has its origins in trade union campaigns for its inclusion in industrial agreements. In Australia, it was introduced into "industrial awards" in 1922

Under the Federal Government's industrial relations legislation (Fair Work) eligible employees are entitled to 10 days of paid personal leave (sick/carer's leave) per year, which also carries over to subsequent years if not used.

In addition, Australian workers may be entitled to two days of compassionate leave for each permissible occasion where a member of their family or household contracts or develops a personal illness or sustains a personal injury that poses a threat to his or her life, or dies.

The UK has sick leave, paid at £89.35 per week, with the first three days unpaid.

Sweden has paid sick leave.[40] Prior to 2019 the first sick day (Swedish: sjukdag) was unpaid, whereas since 2019 a deduction (Swedish: sjukdagsavdrag) of 20% of a worker's average weekly pay is made, which is intended to make the system fairer for non-salaried workers.[41] After that day a minimum of 80% of the income is paid for 364 days and 75% for a further maximum 550 days. Collective employment contracts may specify a higher payment. A medical doctor must certify the illness no later than one week after the first sick day. The parent of a sick child (under 12) can get paid leave to care for the child (termed "temporary parental leave"). In that case the first day is also paid. The state pays all these benefits, except for the first two weeks of sick leave for employees, which is paid by the employer.

According to Chinese Labor Law, the sick leave system is established for employees who are suffering from illness or non-work-related injuries. During the medical treatment period, an employer cannot terminate the labor contract and must pay the sick-leave wage.[42] Generally, an employee is compensated at 60 to 100 percent of their regular wage during the sick leave period, depending on the employee's seniority.[43] The minimum sick leave is three months long for employees with less than a ten-year cumulative work history and less than five years' seniority with their current employer. Sick leave for workers with 20 years of work history and 15 years with their current employer are entitled to unlimited paid sick leave.[42]

In France paid sick leave is paid partly by social security (Sécurité sociale) and partly by the employer. It requires a medical justification no later than 48 hours after the first sick day. Social security pays only one part of the treatment, starting at the fourth day, and can make controls. The employer pays an additional part depending on collective agreement and legislation. Basic legislation requires that an employee working for more than one year, starting at eighth sick day social security and employer together provides 90% of salary for at least 30 days. Ratio and number of days are computed according to the number of years worked in the company.

Other legislation and agreements are applicable in other contexts such as sick child, pregnancy, paternity leave.

Since 2011, civil servants are not paid for the first day of a sick leave ("jour de carence"). This rule was abolished in 2014,[44] and then reinstated again since January 2018.[45]

In Germany, employers are legally required to provide at least six weeks of sick leave per illness at full salary if the employee can present a medical certificate of being ill (which is issued on a standard form).[46] The salary paid during sick leave is partially refunded to employers.[47]

After these six weeks, an employee who is insured in the statutory health insurance (Gesetzliche Krankenversicherung) receives about 70% of their last salary, paid by the insurance. According to § 48 SGB V (social code 5) the health insurance pays for a maximum of 78 weeks in case of a specific illness within a period of three years. In case another illness appears during the time when the employee is already on sick leave then the new illness will have no effect on the maximum duration of the payment. Only if the patient returns to work and falls sick again with a new diagnosis will the payment will be extended.

Fathers and mothers who are insured in the statutory health insurance and are raising a child younger than 12 years also have the right to paid leave if the child is sick (Kinderkrankengeld). The insurance pays for a maximum of 10 days per parent and per child (20 days for a single parent), limited to 25 days per year per parent (50 for a single parent).[48][49]

For patients with a private health insurance, payments beyond the legally mandated first six weeks depend on the insurance contract.

At least 145 countries provide paid sick days for short- or long-term illnesses, with 127 providing a week or more annually. 98 countries guarantee one month or more of paid sick days.[50]

Many high-income economies require employers to provide paid sick days upwards of 10 days, including: the Netherlands, Switzerland, Sweden, Denmark, Finland, and Singapore.[50]