December is one of the most stressful times of the year for employers and payroll managers!
While Christmas is a time for festivities and fun for your staff. for many payroll departments it's often a time when employee leave headaches rear up.
This year will be no exception, and in fact it could be even more challenging when we take into account the impact of COVID and that we will have to deal with Mondayisation for Boxing Day and the day after New Years Day. Five out of 10 public holidays will be Mondayised (or Tuesdayised in one case) in 2021
No only do employers have to deal with determining if staff have leave available, they have to ensure that the Annual Leave is paid at the correct rate.
Add to this the issue of Public Holidays and working out if staff who don't work the day/s should be paid for not working and then if they do work should they receive an Alternative Day off and the pressure mounts.
Employees not only depend on their time off and in many case the pay associated with that leave, but the employer has to deal with making sure they are correctly understanding legislation that is unwieldy and confusing.
Getting it wrong not only impacts the relationship between and employer and their staff, but it exposes the employer to serious penalties for getting it wrong.
Rather than writing a long post with our interpretation of the various acts associated with paying leave at this time of year we have put together a list of key information and links to sites that hopefully explain what your responsibilities are (Click the link below each heading):
1) Minimum leave and holidays entitlements
2) Calculating annual holiday payment rates
2a) How Covid-19 has affected workers' Christmas leave
3) Relevant daily pay and average daily pay
5) Public Holidays
6) Alternative holidays
7) Employees working shifts or on call
8) Annual Closedowns
9) Cashing-up annual holidays
10) Otherwise working day
11) Pay for public holidays, sick and bereavement leave and alternative holidays
12) What constitutes "Gross earnings"
13) Taking annual holidays
14) Mondayisation of Public Holidays
With Christmas Day and New Years Day falling on a weekend this year you need to consider Mondayisation. This flowchart will help you to work it out
15) Finally a summary of Holiday and leave entitlement and payment ‘must-knows’
As we said, there is a lot you need to know and understand to ensure you are compliant with all the legislation associated with managing employee leave, so we hope this helps.
The most important advice we can give you is that near enough is not good enough so if you are not sure we recommend that you seek guidance from a specialist adviser in this area or you contact Employment New Zealand as ask one of their advisors.
We have provided contact details below:
For free employment information they are open from Monday to Thursday 8.30am to 5.00pm, and Fridays 9.00am to 5.00pm, excluding public holidays. You can call them on 0800 20 90 20.
Or you can email them - Here
Please note: They can't interpret employment agreements, provide legal advice or bring personal grievances on your behalf. For legal advice, please consult a lawyer or visit your local community law centres.
Source of the information provided here Employment New Zealand