Leave Balances - NZ

About

This section deals with the issues involved with storing and interpreting opening leave balances for both Holiday Pay - NZ and BAPS Leave - NZ.

Holiday Pay Opening Balances

Per the Holiday's Act, all Holiday leave balances are stored in weeks (rather than dollars, hours, days etc) and as per the Act the actual value of the weeks is determined by an individual employee's regular pattern of work.

Additionally, per the Act, people are not entitled to leave prior to the twelve month anniversary of their employment and while they will have an entitlement upon termination (ie pay out of 8% of their gross earnings) these are not technically weeks until the 12 months have elapsed.

When it comes to determining an actual value for someone's leave where they have worked 12 months then it is 4 weeks (assuming they have not taken any leave) at their relevant weekly pay. Their relevant weekly pay is determined by the three factors of Relevant Daily Pay, # Days Worked Per week & # Hours Worked per week.

This can present some challenges when calculating the values (eg weeks or 8%) for the opening balances for existing employees when first setting up PinvoiceR.

For Employees that have worked less than 12 months

For employees who are not yet entitled to holiday pay as they have not yet worked for 12 months then the there is no leave balance to transfer. In these cases the opening balances of the YTD transactions will be enough to calculate the 8% termination value (in the instance that they are terminating their employment prior to working 12 months).

Things to note here are;

• In the instances that you have already paid some annual leave to an employee that has not yet worked for 12 months then in the opening balances you should identify that leave paid separately to their gross - otherwise if it is not identified then they will be paid twice for leave already taken.

For Employees that have worked for more than 12 months

For employees who have worked for more than 12 months then for each of these people the system will require the following for each employee;

• # Weeks owed
• Relevant Daily Pay
• # Days worked per week
• # Hours worked per week

BAPS Leave Opening Balances

For each of the employees being set up in PinvoiceR you are also able to set their opening balances for BAPS Leave. In PinvoiceR you can manually set this at each employee's individual record - Pay Leave > Leave Report and enter the # Days of Sick Leave to Accrue.