Other issues

Determining the portion of annual holidays taken

When annual holidays are taken, remediation calculations use the following fraction:

                Portion of entitlement taken =

                                     number of hours taken
        number of hours that genuinely constitutes a week when the
                                  annual holidays were taken

If you think this approach doesn't adequately meet the entitlements for your circumstances, please send your specific information to Holidays Act Payments. so we can review how we'll address your situation.

Calculation of annual holidays where the period of annual holidays cross pay periods

Section 21(2)(b) of the Holidays Act 2003 requires that annual holiday pay must be at the rate that's based on the greater of:

  1. The employee’s ordinary weekly pay at the beginning of the annual holiday; or
  2. The employee’s average weekly earnings for the 12 months immediately before the end of the last pay period before the annual holiday.

Where a block of annual holidays crosses pay periods, the remediation calculations check that the rate at the start of the block of leave is used for the entire block of annual holiday. If the block of annual holidays is interrupted by other leave type/s, the rate at the start of the block is used for all annual holidays on either side of the other leave type.

Where a block of annual holidays is made up of more than one leave request, the rate at the start of the block continues across consecutive days of annual holidays.

Where an increase in pay starts within a block of annual holidays, the higher pay rate is used from the date it becomes effective.

Annual Leave affected by Parental Leave

From 1 July 2013, annual leave taken that's been affected by a period of parental leave (as defined in the Parental Leave and Employment Protection Act 1987) has been recalculated using the higher of Ordinary Weekly Pay or Average Weekly Earnings. This reflects Ministry policy, which is above the legislated minimums.

Prior to 1 July 2013, the Ministry’s policy was different. For this period, annual leave that an employee became entitled to while on parental leave is recalculated at Average Weekly Earnings only if taken within 12 months after return from parental leave. Otherwise, it's recalculated using the higher of Ordinary Weekly Pay or Average Weekly Earnings. This policy, while less generous than current policy, was also above legislated minimums.

Anniversary Dates

The anniversary dates used to determine employees’ entitlements through the remediation are the anniversary dates held within the current payroll system.