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Staff isolation or sick payments


Published 28 Jan 2022

When an employee cannot work due to or as a result of  Covid-19, you firstly have a look at your employment agreement. Do you have a Pandemic or Force Majeure clause in the agreement?

Yes the agreement has the clause – follow the requirement set in the clause or anything more favourable.
No the agreement doesn’t have the clause – minimum statutory obligation will need to be met and/or an agreement needs to be reached between the parties regarding payment.

The following Schemes are currently available:

  • Short term absence payment - STAP ($359.00 once off payment / once every 30 days)
  • Leave Support Scheme - LSS ($600.00 or $359.00 weekly payments)

Scenario 1 (Covid) :
Employee is sick with Covid-19 – the employee can take sick leave (if no other subsidy scheme payment is received) or the employer can apply for the LSS.
LSS payment is used to cover the leave period and sick leave or annual leave if sick leave exhausted, can be used to top up the wages to 100% in the event of a short fall.

Scenario 2 (Test) :
Employee is sick/has symptoms and awaiting testing results – can take sick leave (if no other subsidy scheme payment is received) or the employer can apply for the STAP.
STAP can be used to cover this period and sick leave or annual leave if sick leave exhausted, can be used as a top up.

Scenario 3 (Test) :
Employee not sick, but need to test due to valid reason (employee must provide a valid reason for the test and time off needed for this) –  the employer can apply for the STAP and the employee and the employer can agree to use annual leave to top up the amount. If there is no agreement for the use of annual leave – look to your pandemic clause. This is not sick leave as the employee is not sick.

Scenario 4 (Isolation) :

  • Employee need to isolate due to having covid or other covid related reason and can and does work from home – normal wages.
  • Employee need to isolate due to having covid and cannot work from home – LSS and top up from sick or annual leave if no sick leave available.
  • Employee need to isolate due to close contact/health directive/or dependant and cannot work from home  – LSS and top up with annual leave or special leave. Special leave can be agreed between the employer and employee, this is not an obligation of the employer but rather an addition benefit to the employee. Look at your pandemic clause for guidance.  

Note: For an employee's Annual Holidays to be used, the employee must be in agreement and know it's their choice.