6 Things Employers Must Know About Annual Holidays

Employers must know what these provisions are or risk personal grievances or prosecutions

1.       Advice of rights
Employers must advise employees of their entitlements under the Act and that information is available from the union if they are a member, and the Ministry of Business, Innovation and Employment (MBIE).

To show this has been done these points should be included in all employment agreements along with a provision concerning the opportunity to take independent advice.

2.       4 weeks holiday
This is standard and cannot be bargained away. Leave is to be expressed as so many weeks (not days). Since 1 April 2011 employees are able to request that one week of their annual leave be paid out.

A greater amount of annual leave may be agreed by the employer and employee.

3.       Annual holidays must be taken
The employer must allow the employee to take all their annual holidays. They can require them to take the annual leave by giving 14 days’ notice.

4.       Annual holidays do not lapse
If employees fail to take holidays then clauses preventing carrying forward are of no effect. Holidays remain due (an entitlement to the employee) until they are taken. Allowing a delay will put up your costs if wages rise, and as holidays accumulate. Holidays are paid at the current rate.

5.       Two weeks uninterrupted leave
Employees are entitled to take two weeks of their leave in an uninterrupted block.

6.       Close downs
Only one per year is allowed. This is where the business is closed and annual leave must be taken.

Calculating leave can be complicated however the onus is on the employer to get it right.  Keeping accurate records is another legal requirement to ensure you are complying with.

If you have any questions regarding the above please contact Chapman ER on 03 545 0877 or email your question to katrina@chapmaner.co.nz.  10 minute enquiries on any new matter are free of charge.

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