Paid Sick Leave] What is the calculation of sick leave for employees? Employment Ordinance, Classification of Medical Certificates and Calculation Methods

Labour Laws] How to Calculate Paid Sick Leave? Classification of doctor's certificates, accumulation methods and calculation of sick leaves

The Employment Ordinance of Hong Kong stipulates that as long as the attendance note is signed by a registered healthcare worker, it can be used as a valid proof of paid sick leave to ensure his/her entitlement.

Do I get paid for taking sick leave? Learn about the Labour Department's Employment Ordinance first.

Sickness allowance (four-fifths sick leave)

Under Chapter 57 of the Laws of Hong Kong.Employment OrdinanceAccording to the Employment Ordinance, in order to be entitled to paid sick leave, an employee must comply with the requirements of the Employment Ordinance and satisfy the conditions on the number of days of sick leave, the eligibility criteria for accumulation of sick leave and the submission of medical certificates, and so on.

Employees who fulfil the following criteria are eligible for sickness allowance, which is calculated at four-fifths of the employee's average daily wage (80%) and is therefore known as "four-fifths sick leave".

Employees What are the circumstances under which paid sick leave is available?

Employees' entitlement to paid sick leave

Sick leave of not less than 4 consecutive days

Sick leave with pay can only be claimed if the employee has been absent from work for not less than four consecutive days due to sickness or injury. However, if an employee is "hospitalised", he/she can also apply for sickness allowance if the absence is less than four days.

It is important to note that if you need to take time off work because of an injury at work, your employer will need to deal with it in accordance with the Employees' Compensation Ordinance, and injuries at work are not included in the scope of sick leave.

Employees have accumulated sufficient paid sick leave

An employee may accumulate two days of paid sick leave for every month of continuous contractual service up to a maximum of 120 days. Sick leave allowance is payable only when the employee has accrued the maximum number of days of paid sick leave.

Employee can show proof

Employees are required to produce a doctor's note when taking paid sick leave. This is usually issued by a registered medical practitioner who is in charge of the consultation, and the employee needs to use this as proof of sick leave.

Non-payment of sick leave

If the employee does not fulfil the above conditions, the employer can refuse to pay paid sick leave. The employer also has the right to refuse to pay the allowance if the employee has taken paid sick leave but has taken up other jobs during the period.

Doctor's paper 2 types

There are two main categories of doctor's certificates used to certify sick leave:

Category 1

The most common type of medical certificate in the first category is the "Sick Leave Certificate", which can be accumulated for a maximum of 36 days and is issued by a registered medical practitioner, registered Chinese medicine practitioner or registered dentist.

If you are a pregnant woman and undergo antenatal check-ups at "general out-patient clinics" or "clinics", you may present the attendance certificate issued by a registered medical practitioner, registered Chinese medicine practitioner, registered midwife or registered nurse as proof.

Category 2

Under the second category of medical certificates, the Labour Department (LD) stipulates that after an employee has taken sick leave for more than 36 days, he/she will be granted Type 2 paid sick leave, subject to a maximum accumulation of 84 days.

For hospitalisation or specialist treatment, the employee must submit a sick leave certificate issued by a registered medical practitioner attending the hospital and, if requested by the employer, a medical history of the diagnosis or treatment.

If you are a pregnant woman and you are having an antenatal check-up at a Hospital Outpatient Department or an inpatient hospital, you may present a medical certificate issued by a registered medical practitioner, registered Chinese medicine practitioner, registered midwife or registered nurse in charge of the check-up.

Doctor's paper 2 types

Visiting Note vs Doctor's Note

Unlike a doctor's note, a doctor's note only states the date and time of the visit, and does not suggest the number of days of sick leave to be taken. Only pregnant employees can ask a qualified doctor to give them a doctor's note to take sick leave, which is not available to ordinary employees.

How to accumulate paid sick leave days? What is the maximum number of paid sick leave days?

Calculation of Paid Sick Leave Accrual

Employees employed under a continuous contract can accumulate two days of paid sick leave for every month of service in the first 12 months of employment and four days for every month of service thereafter.

Maximum paid sick leave

Paid sick leave may continue to accrue throughout the period of employment, subject to a total maximum accumulation limit of 120 days.

Calculation of paid sick leave

Calculation

The rate of sickness allowance is four-fifths of the employee's "average daily wage". The average daily wage will be calculated on the basis of the employee's wages in the 12 months prior to the date of leave, or if the employee has been employed for less than one year, the average of his/her wages during the actual period of employment.

The following are examples:

Employee A has accumulated 30 sick leave days and has taken 5 consecutive days of paid sick leave from the company and submitted a medical certificate.

If the average daily wage of Employee A is $500, the sickness allowance will be $500 x 80% = $400. From this, we can work out that the total amount of sickness allowance for five days of sick leave will be $400 x 5 days = $2,000.

Extended Reading:Employers must read this article! How to calculate the 12-month average wage? How to calculate paid sick leave, bonus and commission?

Notes for Employers

The Employment Ordinance requires employers to pay sickness allowance to their employees on the next pay day without undue delay or refusal, or else a fine may be imposed.

The employer has the right to refuse payment if the employee fails to provide a qualifying medical certificate, takes sick leave in excess of his/her accrued entitlement, or engages in other paid employment during sick leave.

Frequently Asked Questions

Can an employer dismiss an employee who is on paid sick leave?

No! According to theA Concise Guide to the Employment OrdinanceUnder the "Sick Leave Ordinance", an employee on paid sick leave cannot be dismissed arbitrarily unless the employee has committed a serious offence that warrants immediate dismissal.

Does the calculation of paid sick leave include the year-end bonus?

Sickness allowance is calculated on the basis of the employee's "-".Average wage"This refers to the fixed salary component. Additional remuneration such as year-end bonuses or discretionary awards are not included in the calculation.

Can probationers take paid sick leave?

Yes! As long as you have a continuous contract with your employer, you can start to accrue after working for one month, two days per month, and so on, based on the accruals mentioned above.

Can a pregnant woman get paid sick leave if she comes to the clinic with a medical certificate?

Yes! If the absence is due to an antenatal check-up, the attendance slip can be used as a doctor's slip provided that the issuer is a registered medical practitioner, registered Chinese medicine practitioner, registered midwife or registered nurse.

Not sure about Paid Sick Leave Labour Laws? Longhorn Business Consultants provides professional advice.

The rules on paid sick leave may seem simple, but there are often ambiguities in practice, such as under what circumstances the attendance note can be counted, whether the year-end bonus should be included in the average wage, or how to accrued the correct number of days of sick leave.

If employers or employees still have questions about the details of the Employment Ordinance, our professional team is familiar with Hong Kong's labour laws and can provide clear explanations and compliance advice to help you avoid unnecessary disputes and risks.