Holiday Pay - NZ - Revision history

Pinvoicer at 05:45, 14 February 2018

2018-02-14T05:45:30Z

Pinvoicer at 05:44, 14 February 2018

2018-02-14T05:44:52Z

Pinvoicer at 05:44, 14 February 2018

2018-02-14T05:44:30Z

Pinvoicer at 01:01, 5 February 2018

2018-02-05T01:01:32Z

Pinvoicer: /* Related Pages */

2018-01-24T23:15:50Z

Pinvoicer at 01:11, 24 January 2018

2018-01-24T01:11:56Z

Pinvoicer: /* What Discretionary Payments' means */

2018-01-24T00:42:45Z

What Discretionary Payments' means

Pinvoicer at 00:40, 24 January 2018

2018-01-24T00:40:50Z

Pinvoicer at 00:21, 24 January 2018

2018-01-24T00:21:30Z

Pinvoicer: /* Holiday Pay in Regular Annual Closedown period */

2018-01-23T23:59:58Z

Holiday Pay in Regular Annual Closedown period

@@ Line 7: / Line 7: @@
 * All employees are entitled to 4 weeks’ paid annual holidays (or ‘annual leave’) each year.
 * All employees should be entitled to take public holidays as leave, where possible for the observance of days of national, religious, or cultural significance. Where an employee does work on a public holiday that work should be specially rewarded.
-* After 6 months employment, it is reasonable to expect employers to support
+* After 6 months employment, it is reasonable to expect employers to support their employees with sick leave and bereavement leave when required.

@@ Line 3: / Line 3: @@
 Holiday Pay in New Zealand is covered by the [https://www.employment.govt.nz/assets/Uploads/tools-and-resources/publications/leave-and-holidays.pdf Holidays Act 2003]
-A summary of employees’ rights under the Act 2003;
+A summary of employees’ rights under the Act;
 * All employees are entitled to 4 weeks’ paid annual holidays (or ‘annual leave’) each year.

← Older revision		Revision as of 05:44, 14 February 2018
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	Holiday Pay in New Zealand is covered by the [https://www.employment.govt.nz/assets/Uploads/tools-and-resources/publications/leave-and-holidays.pdf Holidays Act 2003]		Holiday Pay in New Zealand is covered by the [https://www.employment.govt.nz/assets/Uploads/tools-and-resources/publications/leave-and-holidays.pdf Holidays Act 2003]
		+
		+	A summary of employees’ rights under the Act 2003;
		+
		+	* All employees are entitled to 4 weeks’ paid annual holidays (or ‘annual leave’) each year.
		+	* All employees should be entitled to take public holidays as leave, where possible for the observance of days of national, religious, or cultural significance. Where an employee does work on a public holiday that work should be specially rewarded.
		+	* After 6 months employment, it is reasonable to expect employers to support
		+	their employees with sick leave and bereavement leave when required.
		+

	=Definitions=		=Definitions=

← Older revision		Revision as of 01:01, 5 February 2018
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	An Employment Agreement may state a special rate of relevant daily pay for the purpose of calculating payment for a public holiday, an alternative holiday, sick leave, or bereavement leave, as long as the rate is equal to, or greater than, the rate that would otherwise be calculated using the method above.		An Employment Agreement may state a special rate of relevant daily pay for the purpose of calculating payment for a public holiday, an alternative holiday, sick leave, or bereavement leave, as long as the rate is equal to, or greater than, the rate that would otherwise be calculated using the method above.
		+
		+	[[File:What_is_in_relevant_daily_pay.PNG \|800px]]

← Older revision		Revision as of 23:15, 24 January 2018
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	=Related Pages=		=Related Pages=
	* [[Pay as you go]]		* [[Pay as you go]]
		+	* [[How to pay a termination payment in NZ]]

← Older revision		Revision as of 01:11, 24 January 2018
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	An employer who wants to implement more than one closedown in any year can if their employees agree, but can’t make them take annual holidays using the above provisions. The date of entitlement to annual holiday is not adjusted by a second closedown.		An employer who wants to implement more than one closedown in any year can if their employees agree, but can’t make them take annual holidays using the above provisions. The date of entitlement to annual holiday is not adjusted by a second closedown.
		+
		+	=Related Pages=
		+	* [[Pay as you go]]

@@ Line 83: / Line 83: @@
 * If employees have a reasonable expectation of payment based on past practice, to the extent that the payment forms part of the employment agreement, it is unlikely to be a discretionary payment.
-* As it is rare for payments to be excluded it is recommended that employers seek advice before determining that a payment is discretionary, or else err on the side of caution and include the payment.
+As it is rare for payments to be excluded it is recommended that employers seek advice before determining that a payment is discretionary, or else err on the side of caution and include the payment.
 =Paying Holiday Pay In Advance=

← Older revision		Revision as of 00:40, 24 January 2018
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	Holiday Pay in New Zealand is covered by the [https://www.employment.govt.nz/assets/Uploads/tools-and-resources/publications/leave-and-holidays.pdf Holidays Act 2003]		Holiday Pay in New Zealand is covered by the [https://www.employment.govt.nz/assets/Uploads/tools-and-resources/publications/leave-and-holidays.pdf Holidays Act 2003]
		+
		+	=Definitions=
		+
		+	===Relevant daily pay===
		+	Relevant daily pay is used to calculate payment for public holidays, alternative holidays, sick leave and bereavement leave.
		+
		+	Relevant daily pay is the amount the employee would otherwise have earned on the day if they had worked, and includes:
		+
		+	* productivity or incentive payments, including commission or piece rates, if those payments would have been received had the employee worked
		+	* overtime payments
		+	* the cash value of board and lodgings provided.
		+
		+	It doesn’t include payment of any employer contribution to a superannuation scheme for the benefit of the employee.
		+
		+	An Employment Agreement may state a special rate of relevant daily pay for the purpose of calculating payment for a public holiday, an alternative holiday, sick leave, or bereavement leave, as long as the rate is equal to, or greater than, the rate that would otherwise be calculated using the method above.
		+
		+
		+	===Average daily pay===
		+
		+	Average daily pay may be used if it isn’t possible or practicable to determine relevant daily pay, or if the employee’s daily pay varies within the pay period when the holiday or leave falls.
		+
		+	Average daily pay is a daily average of the employee’s gross earnings over the past 52 weeks. That is, the employee’s gross earnings divided by the number of whole or part days the employee either worked or was on paid leave or holiday during that period.
		+
		+	===Average weekly earnings===
		+	Are determined by calculating gross earnings over the 12 months prior to the end of the last payroll period before the annual holiday is taken, and dividing that figure by 52.
		+
		+	The following payments make up gross earnings and '''should be included''' in the calculation:
		+	* Salary and wages
		+	* Allowances (but not reimbursing allowances)
		+	* All overtime
		+	* Piece work
		+	* At-risk, productivity or performance payments
		+	* Commission
		+	* Payment for annual holidays and public holidays
		+	* Payment for sick and bereavement leave
		+	* The cash value of board and lodgings supplied
		+	* Amounts compulsorily paid by the employer under ACC (i.e. the first week of compensation)
		+	* Any other payments that are required to be made under the terms of the employment agreement. Unless the employment agreement says otherwise, reimbursement payments and discretionary or ex gratia payments ( e.g. discretionary bonuses) are not included in these calculations; nor are payments made by ACC, or when an employee is on voluntary military service, or payments for cashed-up holidays.
		+
		+	===Ordinary Weekly Pay ===
		+	Is everything an employee is normally paid weekly under the employment agreement, including:
		+
		+	* regular allowances, such as a shift allowance
		+	* regular productivity or incentive-based payments (including commission or piece rates)
		+	* the cash value of board or lodgings
		+	* regular overtime.
		+
		+	Ordinary weekly pay doesn’t include irregular, one-off payments or discretionary payments.
		+
		+	For many people, ordinary weekly pay is quite clear because they are paid the same amount each week.
		+
		+	Where ordinary weekly pay is unclear for any reason, there is a formula for working it out. Ordinary weekly pay is calculated by:
		+
		+	* going to the end of the last pay period
		+	* from that date, going back;
		+
		+	– 4 calendar weeks, or;
		+	– if the pay period is longer than 4 weeks, the length of the pay period
		+	* taking the gross earnings for that period
		+	* deducting from the gross earnings any payments that are irregular or the employer doesn’t have to pay, and
		+	* dividing the answer by 4.
		+
		+	If an employment agreement includes an amount for ordinary weekly pay, the figure in the employment agreement must be compared with the actual ordinary weekly pay (as calculated above), and the greater of the two amounts must be used as ordinary weekly pay.
		+
		+	===What Discretionary Payments' means===
		+	If an employer is bound under the employment agreement to make a payment, then it is not a discretionary payment. Discretionary payments are ex-gratia payments that an employer doesn’t have to pay the employee under the employment agreement.
		+
		+	* ‘Employment agreement’ should be considered widely ie to include variations of employment agreements, letters of offer, rules of commission schemes, bonus scheme rules, policies etc especially if the employment agreement can be said to incorporate the entitlement to participate.
		+
		+	* If the terms of a payment scheme are intended to be binding on the employer and employees, it is unlikely to be a discretionary payment.
		+
		+	* If an employment agreement states that a payment is a discretionary payment for the purposes of the Holidays Act 2003, this in itself doesn’t make it a discretionary payment. Whether the employer is bound under the employment agreement to make the payment is what determines whether or not it is discretionary.
		+
		+	* If an employer is bound by the employment agreement to make a payment to the employee even if the amount is discretionary (and could be zero), it is not a discretionary payment.
		+
		+	* If the payment is dependent on the employee and/or the organisation meeting eg any type of targets, quotas, performance criteria or indicators this does not make it a discretionary payment.
		+
		+	* If payments are made on a regular and consistent basis eg annually if criteria are met, it is unlikely to be a discretionary payment.
		+
		+	* If employees have a reasonable expectation of payment based on past practice, to the extent that the payment forms part of the employment agreement, it is unlikely to be a discretionary payment.
		+
		+	* As it is rare for payments to be excluded it is recommended that employers seek advice before determining that a payment is discretionary, or else err on the side of caution and include the payment.

	=Paying Holiday Pay In Advance=		=Paying Holiday Pay In Advance=

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 ===Holiday Pay in Regular Annual Closedown period===
 Calculating an employee’s annual holiday entitlement is different if the employer chooses
 to have a regular or customary annual closedown. The closedown can occur either:
@@ Line 20: / Line 24: @@
 * for part of an enterprise (for example, where the factory closes for maintenance while the office, dispatch and sales departments remain open).
-To determine whether a day that falls during a closedown period would be an ‘otherwise working day’ in regard to entitlements to public holidays, alternative holidays, sick leave and bereavement leave, see the section below on ‘Public holidays during a closedown period’. Employees who have been employed for less than 12 months at the date of closedown will not have worked long enough to be entitled to annual holidays. In this situation the employer must pay the employee 8% of gross earnings since their start of employment less any payment for annual holidays taken in advance. In addition to the payment of the 8%, the employer and employee may agree to the employee taking paid annual holidays in advance of their entitlement (these holidays will be deducted from the next year’s entitlement). The employee’s anniversary date for annual holidays entitlement must move
+To determine whether a day that falls during a closedown period would be an ‘otherwise working day’ in regard to entitlements to public holidays, alternative holidays, sick leave and bereavement leave, see the section below on ‘Public holidays during a closedown period’.
 to the date of the start of the closedown (or another date close to the start of the closedown) and they will not be entitled to any annual holidays for another 12 months.