Why should anyone get cash for unused sick days?
By ParaTed2k
@ParaTed2k (22940)
Sheboygan, Wisconsin
May 19, 2011 7:59pm CST
Ok, sick days, as a fringe benefit, is a legitimate idea. People get sick, they need to take time off. I've never understood why an employer would make sure a machine was in good repair before returning it to "work", yet may resent any employee who has the gall to actually get sick.
But I don't understand the concept of getting paid for unused sick days. The money wasn't earned, nor does it keep the employee from having to lose income due to illness. I've only had a few jobs that had sick days, and I appreciated every one I've had to use. To be paid for unused sick days doesn't even sound ethical to me. Why should my employer "owe" me some kind of "health dividend"?
Worse yet is the total scam of "rolling over" unused sick days for years and years.. even decades, then being paid for all of them as the person retires.
Why is it a scam? First of all, it isn't money earned at all. But worst of all, the employer gets ripped off pretty harshly.
Let's say a person only uses 3 of 8 days per year, for 40 years. That leaves them with 200 days to be paid at retirement. Now, those days were accrued over 40 years. There were several raises along the way, but in most cases, the retiree gets paid the last few months (or best of a given number of years). So, if they retire at $25/hour, but started the job at $10/hour, the retiree didn't get paid $25 for MOST of those days, but because he didn't use them "back then", he gets $25/hour for all of them, or $5000. When it should be far less than that.
3 people like this
14 responses
@millertime (1394)
• United States
20 May 11
I can see both sides of the argument, but it's really up to the employer or what's negotiated in the contract. Not all employers do it.
Where I work, you can get paid for a portion of your accumulated sick days when you retire, not all of them. You don't get anything if you leave for any other reason but retirement. It is negotiated into the contract and sick days are considered a benefit. We accumulate sick hours monthly, so really, we earn it just as we earn vacation time.
I don't really understand why you think rolling over, or accumulating sick hours is a scam. It's simply banking the hours so you have them if you need them. The employer doesn't really get ripped off if you think about it.
Take two employees for example. One calls out sick a lot and uses all his sick hours as he gets them and doesn't bank any. The other doesn't call in sick much and builds up his hours. Which one is the better employee, the one that calls out sick a lot or the one that shows up for work every day?
The employer is paying sick hours when the first guy calls out sick, so he's paying for no work. He just pays it over the course of the year as the guy calls out sick. The other guy shows up for work every day and gets paid for hours worked, then he gets paid for his sick hours (or a portion of it) when he retires. The employer is actually coming out the same as far as how much he pays for hours not worked by each employee, or if they only pay out a portion of the sick hours at retirement, they actually come out ahead.
As an employer, would you want your employees at work every day or would you want them to call out sick on a regular basis? The money paid out in sick days would be the same for every employee, whether they call out sick all the time or show up for work every day and collect them at the end. If I was an employer, I would rather have my employees show up for work every day and I wouldn't feel bad paying him his sick time at retirement. I'd rather pay someone that way as sort of a reward for being a great employee over the course of his career.
I guess it's all in the way you look at it though.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
20 May 11
How does the employer not get ripped off here? They have to pay you for days you didn't work, and weren't sick. Would you consider it just as "fair" if you had to pay your employer's sick days they didn't use?
No, the employer isn't coming out the same, because they still had to pay a person to work for the sick person... usually time and a half.
But let's look at it realistically. If you accrued those sick days when you were in the first half of your career, your sick day paid much less than you get at retirement. It might be more fair if they only had to pay you the rate you were making a the time you accrued the sick day.
The worst is when it's a government employee. Here in Wisconsin state workers get up to 15 days a year, after the first 5 years. That means they could have 525 days by retirement. The taxpayers are on the hook for almost a year and a half pay... in a lump sum. PLUS their almost 100% pension for life.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
20 May 11
Yeah, and don't get me wrong, a contract is a contract. And you should be able to negotiate for what you can get. I just don't see any reason for just handing money over unearned just because you didn't get sick.
It's like, I also wouldn't understand a benefit like, getting paid for hours you aren't scheduled to work. You could try to negotiate for it, and you might get it, I just wouldn't understand why it would even be considered.
@sid556 (30960)
• United States
20 May 11
It is for people who fall sick. It isn't money that should be owed to the employee just because they didn't get sick and use it. Many companies offer paid maternity leave for new moms. Not everyone gets pregnant so does that mean that all that didn't use up their maternity leave should get paid for it?? Save it for retirement?
@sweet_pea (3322)
• Philippines
20 May 11
Aren't you happy that they are actually paying for unused sick leaves?
In my country not all employers are that generous. Most of contractual employees in my country don't even have that benefit. They are on a no-work, no-pay basis. That is why greedy employers don't regularize them so as to avoid giving out these benefits. Which for me is really unfair. The poor employee don't have any choice but still work rather than get sacked. There are a lot of unemployed people in my country that they would surely grab their place.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
20 May 11
Yes, I think it is unfair and wrong for an employer to penalize an employee for getting sick. On the other hand, it think it's just as unfair for the employee to do the same to the employer.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
20 May 11
Please understand, this isn't about resenting anyone's benefits, I just don't understand how an employer could possibly "owe" an employee for not getting sick.. or worse yet, for coming to work sick just so they get the extra pay they didn't earn.
@sweet_pea (3322)
• Philippines
23 May 11
I see your point Ted, but I was just showing the other side of the coin.
But I still see that it is but fair to have such benefit. In my country's labor code, we call it a service incentive leave where the employees who had worked for at least a year, gets at least 5 days of leave which they can use for vacation or sick leaves. Once unavailed, they can be converted to cash. But there are exemptions like if the employee holds a managerial position or the company has only 10 employees. The employer is obliged to follow the law unless they want to incur more losses arising from law suits for the reason of non-abidance.
I think the employees earned the leave, so it is but right to give it to them. The employer has utilized the employee’s capabilities so it is but proper to give them a “recharge” in the form of these leaves. Employees are more productive if they have time for themselves.
As to the “scam of rolling over unused sick days for years and years.. even decades, then being paid for all of them as the person retires.” I don’t think it is a scam at all. If the employee didn’t avail of the benefit then, that leaves the company some cash that it could invest in other fruitful endeavors. So in this scenario the company actually owes something to the employee for lending them the sick leave money they didn’t get from the company at that time. Assuming the company invested the sick leave money in stocks. Imagine how much would they earn in 40 years? So I think it is but right that the employee receive the leaves at their current rate.
@blue65packer (11826)
• United States
21 May 11
Were I work we get 10 sick days a year. If you don't use them up at the end of the year,they roll over to the next. I saved up enough sick days to be out the 6 weeks I needed to be when I had a hystercomy 3 years ago. That is my story about sick days.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
22 May 11
Would you be able to cash them in if you didn't use them?
btw, I'm not speaking out against sick days here. I am glad you had them when you needed them. I'm talking about people who are able to roll them over for decades, then cash them in as they retire... especially when they are government employees and the money had to be raised from the taxpayers.
@chuyins123 (2112)
• Philippines
20 May 11
Hi Parated2k,
Okay, I am not a specialist on these things but I would try to explain some points.
First, it is a benefit. Meaning if you get sick and you have to be out of the office, it is acceptable, and you still get paid. It is a benefit usually given for employees who have been in the company for a certain period of time.
Second, as a benefit, it is meant to be enjoyed. Since some of the people don't get sick, technically they didn't enjoy such a benefit. They weren't able to enjoy such a benefit. Because they didn't get sick for a period.
Third, in the employer's side. They sense loyalty and value of the people who served the company diligently and these people who don't get sick on working days could mean that they avoid every circumstance that could make them sick because they give value to their job. They just love their job. And it's just worth rewarding.
Fourth, it's not a scam. It's legal. It's not being unfair to the employer because in the first place it's the employer's discretion to vest the benefit to the employee. Our company gives sick leave benefits after the employee renders a ONE Year of service in the company. And the unused sick leave benefit is not carried over to the next year, and is not convertible to cash. So it's really up to the employer.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
20 May 11
I agree, it's not illegal, but it is far from fair. Would you consider it fair if you had to pay the employer for days you used?
It also doesn't necessarily foster loyalty, loyal employees will be loyal for their paycheck and appreciate whatever bennies they get. What it usually fosters is people coming to work sick, so they can save their sick days for the cash. Both dangerous and disloyal.
I don't consider anyone who takes the money dishonest, but I also don't think fairness to their employer is among their qualities.
@chuyins123 (2112)
• Philippines
20 May 11
Oh we have a policy here in the office that if you are sick you shouldn't be working. The HR is very strict on that. Even if you don't have sick leave benefits yet you have to go home and rest. I have one week of absence previously NO PAY because I don't have the benefit yet, but I have to be out because I am sick. HR told me to go home.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
20 May 11
Yeah, that is something changing in the last decade or so... I remember working at a fast food restaurant back in the early 80s. I called in sick, from the doctor's office. They told me too many people had called in sick, so I had to come in. Not only didn't I go in, I told everyone I knew that the people who run that place make contagious people make hamburgers.
@sam3m1 (190)
• United States
20 May 11
ted, you have an excellent point. however, when i first looked for a job years ago, i chose one over the other based on the fringe benefits even though the salary was lower. i look at those benefits as part of my compensation, and the actual payout for unused sick time should have been calculated at the time of my being hired. btw, i've not heard of any employer allowing unlimited accumulation of sick days.
unfortunately, this sounds a lot like the "i don't have it, so you shouldn't either" argument.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
21 May 11
I'm self employed, so I don't have any fringe benefits. I have nothing against sick days, in fact, I am all for the idea. I just don't think they should carry over year to year, or come with cash payouts for unused days. They are there to be used, not to be abused.
@sam3m1 (190)
• United States
22 May 11
ted, it hurts me to say this, but i agree with you in every respect. there should be a limit to the number of days you can accumulate. ny state's benefit is to allow employees to use unused sick time to defray monthly health insurance premiums after retirement. generous, but encourages people not to call in sick for the last months of their career.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
22 May 11
No it isn't. How did you earn it, by not being sick?
This is nothing but the "entitlement" mentality.
The purpose of sick days is so being sick doesn't cost you money. But you don't appreciate the benefit, you only want more.
I don't think you deserve the benefits you have, because you take them for granted.
@KrauseHome (36448)
• United States
28 Feb 12
Interesting concept, but there are companies that still do this, and it does seem unreal. Unless they do it the way my job where I am at now does, where you have to work so many hrs. to earn your Sick pay, personally this is not right, because even where I work I think you have to be sick in order to get paid for them.
@Lakota12 (42600)
• United States
22 May 11
Never heard of hem roling over like that most place drop them for you to start building sick day for the next year.
like ya get a sick day built up after you have worked a couple of weeks then you get a sick day and you can only have so many if ya dont use them ya lose them.
Same way for Vacation days ya have to work to build them up but ya beter take some vacatoin time or ya lose them too when year is up
@bonbon664 (3466)
• Canada
20 May 11
I think it's ridiculous to be able to carry over sick days. We're not given a designated number of sick days. If you're sick, you take a sick day. (paid). However, if you're off for more than two consecutive days, you need to provide a doctor's note. If you're off for more than 3 weeks, you go on short term disability, and so on.
I don't think you should be monetarily rewarded for not taking them. I think they're a benefit that is very necessary to the well being of everyone. They shouldn't be carried over, and you certainly shouldn't get a big "bonus" for not taking them. If you don't take them, you're being honest.
@sid556 (30960)
• United States
20 May 11
Hi Ted,
I didn't realize that there were places that did that. I'd have a nice little nest egg built up if I could get benefits like that. I just don't miss work. When I worked at the insurance company, we got sick days each year but they could not be rolled over and collected year after year and we certainly did not get paid for unused ones. At one point we were allowed to save up our vacation time but they put an end to that too. One woman in the office had months saved up which I'm sure she was planning on using at the end of her employment before officially retiring. They actually made her take a couple days off per week to use them up. I understand getting paid for unused vacation time as it is time owed to the employee but sick time is completely different. Makes no sense to me. Why would a company even go along with such a policy?
@dragon54u (31634)
• United States
20 May 11
I have never had a job that allowed paid sick days but it seems to me that would be a wonderful luxury! I would go to work sick as a dog because I could not afford to take time off. I remember my boss coming to my apartment after I'd been in an accident and was recovering from surgery and telling me I had to get back ASAP because she couldn't hold my job much longer. So I went against medical advice and went back to work just 10 days after major surgery.
People now have no idea how good they have it.
I agree that sick days should not be able to be accrued but expire each year. It's a burden on employers. Because of policies like that, prices of things we need go up to make up for it. Getting something for nothing isn't right. And an employer paying you for a day twice--which is what happens with accrued paid sick days--is not right, either.
@bounce58 (17387)
• Canada
27 Feb 12
I think that's ridiculous!
Yes, it's a benefit, and people should avail of it when they are really sick. But I don't want people coming to work even when they are sick (even contagious) just because they would lose the money for not coming to work.
Still, I've known companies who do this.
@RamRes (1723)
• Argentina
24 May 11
To begin with, why an employee must have "sick days" at all? It sounds somewhat unethical to have such kinds of free days, sort of warranting that he will become sick beforehand. It's fair and a right of every employee to be respected when he becomes sick, and not to be discounted for every day he can't comply with his tasks, but really having a predefined number of days is ridiculous, and even more be paid an "extra" because of that, regardless if you use them or not. When one becomes sick, he must get a medical certificate to prove he's sick, then the employer must allow him to stay at home, maybe sending his own doctor to check, and then pay his salary like all other day.