Howard Levitt: New paid sick leave benefit will see employees suddenly feeling ‘sick’ 10 times a year

In the minds of the employees, the ten days become floating holidays

Ten days a year paid sick leave may sound innocuous. Almost motherly. But it will be highly damaging both to our economy and Canadian productivity.

It’s yet unclear who is going to pay for it. If it’s the government backstopping employers’ payments to all Canadian employees, that represents the government suddenly assuming four per cent of the wages of all Canadians. That’s about $40 billion annually, on top of an already crippling deficit. If the legislation is intended instead to force employers to pay, that will primarily impact on smaller employers with no sick leave plans, although it will also impact many others, likely most, which presently pay less than 10 sick days each year. Those employers are, especially now, unable to afford a four per cent increase in their labour costs. With the percentage of businesses already projected to close (on top of those which already have), this additional cost could make the difference for many. For most businesses, the cost of employees is the greatest cost they face so a four per cent increase to that cost is significant.