Medical certificates for employee related absences

March 12, 2024

A frequent area of frustration for employers are medical certificates that are provided by Doctors and/or health professionals for employee related absences. The main concern that employers face in this context relates to the often lack of detail and/or vague information contained in medical certificates.


Medical certificates tend to say very little, or nothing about the actual cause for an employee being declared medically unfit, or unable to work, to the point where sometimes it looks like the employee themselves have written the medical certificate. For example, words to the effect of ‘the patient has advised me that they are sick, therefore they are sick from this period until this period’. These sort of certifications are not particularly helpful in terms of verifying the genuineness and/or reason regarding an employee’s absence from work.


The Medical Council of New Zealand, which is the professional body that regulates Doctors has guidelines regarding medical certifications. In summary, the guidelines set out standards that ‘must’ be followed when a Doctor completes a medical certificate. Medical certificates are legal documents and the guidelines require that they be completed ‘promptly, honestly, accurately, objectively, and based on clear and relevant evidence’.


The guidelines also provide for specific guidance on the content of medical certificates and include things like:


• The information should be accurate and based on clinical observations;

• Provide necessary information required by the receiving agency, i.e. the employer;

• Consented to by the patient;

• Any comments on fitness for work;

• Identify the examination date and time period of treatment;

• Clearly identifying retrospective medical certificates (if issued).



Based on the Medical Council guidelines there is a clear argument to be made in favour of employers potentially pushing back on vague and/or unspecific medical certificates, and attempting to seek further information, or clarification in appropriate circumstances.


Given the relevance of the guidelines, and in the event the circumstances warranted it – there is a legitimate basis to push back on vague medical certificates and request from the employee through their Doctor to provide more detailed information in accordance with the guidelines.


In the event that a Doctor refuses to provide that information and/or clarification, then that may constitute grounds for raising the matter with the Medical Council, for example – via a formal complaint that the Doctor has not followed the Medical Council’s guidelines. However, whether or not the Medical Council progresses the matter further, or requires any form of corrective action would be for it to determine.


Putting the above aside, there appears to be a level of merit in an employer citing the guidelines and asking for more detailed information and/or clarification regarding the specific reasons why a Doctor has certified an employee as unfit to work in situations where that information is lacking.


If you didn't want to call a Doctor's professionalism into question, a good check is to get medical certificates verified by the Practice for authenticity. Given the availability and capability of computers and phones these days we often see self-authored medical certificates being presented to employers as 'evidence' for sick leave, be willing to verify them with the alleged issuing party.


By Stuarts Accountants May 22, 2025
What is Income Protection Insurance? Your income is often your biggest asset and losing it can turn life upside down. If you’re unable to work—either temporarily or permanently—because you’re sick or injured, Income Protection Insurance will provide you with money to live on as a monthly payment while you’re not receiving your salary or wage. Income Protection Insurance benefits: Income support Pays you a monthly benefit if you’re unable to work because of illness or injury Rehabilitation & retraining support Helps you with your rehabilitation and retraining costs Recurrent disability Pays you a monthly benefit if you suffer the same sickness or disability within a year Return to work Pays you a bonus benefit if you are able to return to work Family assist We’ll pay for a nurse or family member to look after you at home for up to 6 months Accommodation support Pays for your family to be with you if they live more than 100km away Disability reset Allows you to claim again if you suffer a related sickness or injury Elective surgery Pays you a monthly benefit if you are disabled due to an elective surgery Payment while overseas Pays you a monthly benefit if you are disabled while overseas Funeral assistance We reimburse your family up to three times the monthly benefit for your funeral costs if you die Grief support Helps with the cost of professional grief support to cope with sudden changes Overseas assist Reimburse you and one support person for travel back to New Zealand if disabled overseas New parent premium waiver We’ll pay your premiums for six months while you’re on parental leave Ref: Asteron Life
By Stuarts Accountants May 22, 2025
What is a shareholders’ agreement? A shareholders’ agreement is essentially a contract between company shareholders. It regulates and guides decision-making. Shareholder agreements deal with matters such as: Who the company directors and shareholders are (plus their rights and responsibilities) Voting rights (i.e. which shareholders – or what percentage of shareholders – need to approve various activities and transactions) Restraints of trade that apply to directors and shareholders Sale of company assets Funding, guarantee and insurance arrangements Shareholder agreements also provide a process for complicated situations, for example: Where one of the shareholders dies or becomes totally and permanently disabled If a shareholder-employee leaves employment of the company Where one of the shareholders wants to sell their shares If a dispute crops up between shareholders Shareholder agreements bind shareholders to the agreed terms. They also provide guidance when navigating business issues that aren’t covered by the Companies Act 1993. A shareholders’ agreement can be prepared for a new company or an established business that has traded extensively. If necessary, the agreement can be amended to account for company growth and capital funding Why prepare a shareholders’ agreement? Shareholder agreements aren’t mandatory, but we strongly advise having one. As with all relationships, a business relationship is likely to have its ups and downs. To demonstrate the importance of a shareholders’ agreement, let’s consider an example scenario where an agreement would be helpful: Two business partners form a company as 50/50 shareholders. They decide not to enter into a shareholders’ agreement. The pair successfully trade for several years and enjoy a healthy working relationship, managing company affairs as a team and resolving disputes amicably. Shareholder A dies suddenly. Without a shareholders’ agreement in place, Shareholder A’s 50% shareholding transfers to his wife by virtue of survivorship. His wife is now an equal shareholder of the company. The Companies Act 1993 doesn’t cover this type of situation, so Shareholder A’s wife isn’t obliged to sell her shares to Shareholder B. The company continues to trade while Shareholder A’s wife enjoys the fruits of the company’s success, without materially contributing to the running of the business. A tailored shareholders’ agreement can determine a share sale procedure in the event of shareholder death or incapacitation, ensuring a fair outcome for everyone involved. Most people enter into business arrangements thinking they’ll always be able to work through issues amicably. Unfortunately, that isn’t always the case, particularly when the personal relationship becomes difficult or if one of the shareholders dies and suddenly the remaining shareholders are finding themselves dealing with the deceased person’s family or representatives. A shareholders’ agreement can help you reach a satisfactory resolution to problems efficiently and at minimal cost, compared to the cost of trying to resolve issues without a shareholders’ agreement. Ref: 1 August 2022 • Commercial law
By Stuarts Accountants February 26, 2025
An area of uncertainty for employers when contemplating restructuring & redundancy processes concern obligations associated with disclosing relevant information. The law requires employers provide employees who are adversely affected by any formal processes, for example - a redundancy process - with access to all relevant information (in writing) before any decisions are made. This is a requirement that employers often completely overlook and/or fail to do their due diligence on before commencing change processes with their employees. The important point to make here is: That failure to provide employees with relevant information in these situations can be fatal to defending subsequent personal grievance claim(s). Namely, a claim for unjustified dismissal premised on employer failing to provide access to all relevant information. Problems associated with this area of law can be illustrated in a recent judgment by the Court of Appeal in Birthing Centre Ltd v Matas [2024] NZCA 139, which dismissed an appeal from the Employment Court in Birthing Centre Ltd v Matas [2023] NZEmpC 162 that was in favour of five ex-employees who were employed as midwives. In this case, Birthing Centre Limited (‘BCL’) transferred its services to MidCentral District Health Board (‘MDHB’). The commercial agreement between the parties had a condition that the arrangement be strictly confidential. After the transaction was completed, announcements followed, and concerns subsequently picked up by Midwifery Employment Representation and Advisory Services Union (‘the Union’). In summary, employees were informed they would be transferred to MDHB – but the deal had already been completed by that stage. Five midwives who worked for BCL raised personal grievance claims for unjustified dismissal. Their claims centred on the lack of consultation and provisions of information occurring prior to being notified of their employment transferring. BCL attempted to argue that it was exempted from consulting with employees because there was a good reason to maintain confidentiality in terms of the commercial agreement between BCL and MDHB. The Court of Appeal declined the application for leave to appeal - essentially confirming the ruling of the Employment Court which was: ". . . A fair and reasonable employer could in the circumstances have considered options for exploring whether it could maintain the integrity of BCL’s commercial position as well as the DHB’s commercial position, while informing its employees of the proposal in a confidential way". The Employment Court determined that there had been a failure by the BCL to consider: Options for exploring whether the integrity of their commercial position could be maintained while informing employees of a potential sale in a confidential way. Whether providing information to the Union was viable on embargoed basis. Direct employees not to share information during the consultation process. Include a condition of sale that employees be consulted on a conditional basis and their views sought before the sale agreement became unconditional. As a result, remedies previously imposed in by the Employment Relations Authority (‘the Authority’) were required to be paid by BCL to the midwives. The total value of the claims exceeded $35,000.00 across each of the employees, including compensation payments for injury to feelings and four weeks wages equivalent for each of claimant. This is not to mention the legal costs and time which would have been incurred that were associated with three sets of separate legal proceedings, i.e. a determination in the Authority, the Employment Court and the Court of Appeal, which would have been significant. The outcome associated with this case is a chilling reminder to employers to ensure they do their due diligence when contemplating restructuring processes, including business transfers and sales. Failure to sufficiently plan and understand an employer’s legal obligations can translate to successful legal challenges. It is vital an employer does careful due diligence, along with understanding any specific areas of legal risk (and plan for contingencies – if necessary) before embarking on these sought of processes. If an employer is going to attempt to rely on confidentiality to withhold information from affected employees, then it must be able to show & explain why confidentiality is necessary to protect its commercial position. More importantly, employers who are considering withholding relevant information need to understand that the legal threshold for not disclosing information on grounds of ‘confidentiality’ and/or ‘commercial sensitivity’ is extremely high (and open to challenge). Accordingly, the ‘least risky’ approach is for an employer to consider making provision of all relevant information available to the affected employees via a formal consultation process before any decisions are made. Source: Employers Assistance Ltd 7.10.24