Don't get Burnt by the Holidays Act this Summer

January, 2023

Non-compliance with the Holidays Act (2003) is a major issue for many New Zealand businesses. A taskforce review of the current Act identified widespread issues of incorrect treatment of entitlements, resulting in many employers having to make remediation payments to employees to rectify incorrect payment of entitlements. These payments can range from $29 up to $16,200 per employee.

Clearly, incorrect payment of holiday entitlements leaves employers vulnerable to considerable financial consequences.

In part one of our Employment Law Essentials Video Series, EMA Consultant Chris Longman identifies five key areas where employers often fail to comply with the Act:

  • Annual leave entitlements
  • Bereavement leave
  • Public holidays
  • Sick leave
  • Miscalculation of these different leave types

Is your business compliant with the Holidays Act?

Complex working arrangements and confusion surrounding leave entitlements have made the Holidays Act notoriously difficult for employers to follow. If you are unsure whether your business or organisation is fully compliant with the Holidays Act, there are a few clear red flags that indicate a higher risk of non-compliance.

They are:

  • Employers with a workforce that works variable hours or days regularly
  • Payments of allowances, commission and bonuses
  • Regular changes to the employees work pattern
  • Work performed over public holidays
  • Changes to employment contracts (e.g., a promotion)

Our AdviceLine team can assess your needs and refer you to one of our employment relations consultants for expert advice on more complex matters.

EMA member resources

All EMA members have access to over 250 resources including guides, policies and forms relating to leave and The Holidays Act. Please click here for more information.

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