Local Bodies’ Sick Pay Policy Discussed By Hon. W. E. Parry

Northern Advocate, 18 July 1939, Page 6

Local Bodies’ Sick Pay Policy Discussed By Hon. W. E. Parry

fP?r Press Association, Copyright] WELLINGTON, This Day. EXPLAINING IN DETAIL YESTERDAY THE WORKING AND EXTENT Lj OF SICKNESS BENEFITS UNDER THE SOCIAL SECURITY ACT, THE HON. W. E, PARRY, WHO HAS TEMPORARY MINISTERIAL CONTROL OVER THE ADMINISTRATION OF THE LEGISLATION, SAID HE REGRETTED THAT SOME EMPLOYING BODIES HAD EXHIBITED TIMIDITY AS TO THE PART THEY SHOULD PLAY, PARTICULARLY IN REGARD TO THAT SECTION OF THE ACT WHICH PROVIDED SICKNESS BENEFITS. One or two bodies, he said, had decided to cease sick pay for their employees while on sick leave. That action seemed to be prompted by a desire to relieve themselves of any responsibilities in that direction, and throw the whole onus of providing adequate sickness benefit on the Social Security Fund, without any consideration for the amount of benefits available from that source.

Mr Parry said that, under the Act, 1 sickness benefit rates varied from 20/a week for a single applicant, increased by 15/- a week for a dependent wife, and 5/- for each dependent child, so as not to exceed £4 in- any one case.

Allowable Income. Apart from these sickness benefits, the Commission has a fixed scale of maximum allowable income (including benefit) that applicants of various conjugal classification will be permitted to receive before the maximum rate of benefit in each case is reduced. Mr Parry said that this scale was at the rate of 40/- a week for a single person over 20 years, £3 a week for a j married man without dependent children, increased by 5/- a week for each dependent child under 16 years of age, until it reached £4 a week in respect of a married man with wife and four dependent children. In view of the amount of other income applicants may have before the rate of sickness benefit is reduced, it would be in the interests of employees generally if employing authorities were encouraged to provide sick pay benefits at least up to the maximum rate of other income allowable, stated Mr Parry. Generous Sick Pay. In addition, as sickness benefit was not payable out of the Social Security Fund for the first seven days of incapacity, except in special circumstances, employers could give a considerable measure of relief to their workers by granting generous sick pay during this period. Criticism had been levelled at the imposition of a waiting period of seven days after the receipt of an application at the Social Security office before the benefit was payable, Mr Parry continued. As a general rule, the qualifying period of seven days commenced from the date the application was received by the Department, or the date of medical examination, whichever was the later. Back-Dated Applications. Applications, however, might be back-dated up to a period of seven days, but not earlier than the day following the day the applicant ceased employment, or the day when a doctor examined an applicant and certified him as incapable of work, whichever was the later.

However, in view of the fact, that because of ignorance of the procedure many people were delaying lodging their application, and consequently receiving less by way of sickness benefit than they would otherwise be entitled to, the Commission had authorised in the meantime the back-dating of applications to the date of medical examination or April 3. 1939, whichever was the later. Mr Parry also referred to comments passed on the application form itself from the point of view of the detailed information required to be furnished by applicants. Degree of Assistance. “When it is realised, however,” Mr Parry said, “that sickness benefit is payable to an applicant both in respect of himself and his dependents, certain questions must be asked so as to determine the degree of assistance the State should give in each case.” The non-payment of benefit to applicants who applied for sickness benefit while they were in public hospitals was referred to by Mr Parry. Prior to July, 1939, he said, provided applicants could qualify, sickness benefit had been paid to them while they were in public hospitals, and dependents’ portions continued in exactly the same manner. New Conditions.

Since July, however, when the hospital benefits scheme came into operation, the dependents’ portion of benefits were continued as long as a worker remained incapacitated and eligible for the benefits, but the applicants' portion of the benefits was only payable for a period of four weeks while in a public hospital. Before the expiry of the fourth week, each case was reviewed, and the question of whether the applicants’ portion of the benefit would bo continued at the full rates, as reduced rates, or cancelled, was determined in accordance with the merits of each individual case, action being entirely at the discretion of the Commission. Mr Parry said that the Government was desirous of fostering continuance of sickness pay scheme by employers, at least on a basis so that employees may obtain the full benefits provided under the Social Security Act.