{"id":209462,"date":"2021-08-18T15:53:02","date_gmt":"2021-08-18T02:53:02","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=209462"},"modified":"2024-06-04T18:30:27","modified_gmt":"2024-06-04T05:30:27","slug":"entitlements-to-holiday-pay","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/employment\/entitlements-to-holiday-pay\/","title":{"rendered":"My Employee Was on Leave During an NZ Public Holiday. Are They Entitled to Holiday Pay?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">All business owners know that running a business is not easy. One of the challenges is managing their employees and creating a good work culture. The New Zealand government mandates this through public holidays. Businesses should only require employees to work on public holidays if specified in the employment agreement. This article will explain holiday pay and whether your employee is entitled to it on a public holiday.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is Holiday Pay?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.nz\/employment\/mistakes-to-avoid-annual-holiday-pay\/\">Holiday pay<\/a> is a type of pay you can grant employees who have not worked for your business for over 12 months. This is relevant because those employees are not yet entitled to annual leave. As an employer, you cannot pay your employees holiday pay unless they quit or are on a <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.nz\/employment\/difference-between-permanent-fixed-term-casual-employee\/\">casual contract<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Once an employee has worked in your business for 12 months, you grant them annual leave. At this stage, holiday pay is not applicable. Holiday pay is usually 8% of an employee\u2019s gross earnings in New Zealand. This amount is only paid to employees if their employment ends before they accrue annual leave entitlements.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Public Holiday?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are currently 11 public holidays in New Zealand each year. These <a href=\"https:\/\/legalvision.co.nz\/employment\/mistakes-to-avoid-public-holidays\/\">public holidays<\/a> are recognised in the <em>Holidays Act 2003<\/em>. You must not require your employee to work on a public holiday unless:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the contract states otherwise; and<\/li>\n\n\n\n<li>it is a day that the employee would usually work.\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Some examples of public holidays include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Christmas Day<\/li>\n\n\n\n<li>New Year&#8217;s Day<\/li>\n\n\n\n<li>Labour Day<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, public holidays may be \u2018Mondayised\u2019. This means a public holiday that falls on the weekend will be observed the following Monday.&nbsp;<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar 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In New Zealand, employees are entitled to four weeks of annual leave each year. However, annual leave will only begin to accrue once an employee has worked with your business for 12 months. Once the employment agreement ends, any outstanding annual leave entitlements must be paid to an employee.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Employees can <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.nz\/employment\/annual-holidays\/\">take annual leave<\/a> anytime if they provide sufficient notice and you&nbsp;permit their leave. However, you can only decline an employee\u2019s request for annual leave if you have a genuine reason. For example, suppose another employee has already been approved to take annual leave during this period, which is a busy period for your business. In that case, you may be able to decline the request for leave.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Further, there are only limited circumstances in which you can make your employees use their annual leave. This includes where you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>cannot agree with your employee as to when they should take leave; and<\/li>\n\n\n\n<li>provide the employee with 14 days\u2019 notice that they must take their leave.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Taking Leave on a Public Holiday<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many businesses in New Zealand close during the Christmas and New Year period. This is considered a \u2018shutdown\u2019 period where most employees are expected to be away from the office. Therefore, employees are required to take annual leave during this time. However, there are also several public holidays during this period. So, are employees expected to take annual leave on these days?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The answer is no. Your employees do not need to take annual leave on a public holiday. However, if an employee would usually have worked on that day, you must pay them as usual, and your employee does not lose a day of annual leave. This means that you do not pay your employees holiday pay. Instead, they receive a paid public holiday. However, employees who do not usually work on a public holiday cannot receive any payment for that day. Likewise, they will not need to use any of their annual leave.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Essentially, the employee&#8217;s annual leave period is chosen according to their own preferences, which, after given notice, is pending business approval.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Working on a Public Holiday<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If an employee works on a public holiday, you should pay them \u2018time and a half\u2019. This means they should receive 50% more than usual pay for that work day. They are also entitled to a <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.nz\/employment\/employment-agreement\/\">day in lieu<\/a>, which is a paid day off that they can take later. They do not have to take any annual leave for this day.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Employees are entitled to annual leave if they work continuously for your business for 12 months. If not, they accrue holiday pay which you only pay out once that employee decides to quit or is on a casual contract. However, all employees are entitled to public holidays. Some key things to note include employees working on public holidays:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>do not need to use their annual leave entitlements;\u00a0<\/li>\n\n\n\n<li>are entitled to \u2018time and a half\u2019 pay; and<\/li>\n\n\n\n<li>gain a paid day off in lieu.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If you need assistance managing your employees\u2019 leave entitlements, our experienced <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.nz\/wellington-employment-lawyers-lp\/\">employment lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.nz\/membership\/\">membership page.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/12\/21173210\/new-employee-onboarding-checklist-onsite-nz.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">New Employee Onboarding Checklist (On-site)<\/div>\n            <div class=\"body-text\">\n                <p>Help new employees get off to a great start with our free New Employee Onboarding Checklist.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/new-employee-onboarding-checklist-onsite-nz.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1629254850806\"><h3 class=\"schema-faq-question\">What is holiday pay?<\/h3> <p class=\"schema-faq-answer\">Holiday pay is a type of pay you can grant employees who have not worked for at least 12 months for your business. This is because those employees are not yet entitled to annual leave.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1629254863814\"><h3 class=\"schema-faq-question\">Can I require my staff to work on a public holiday?<\/h3> <p class=\"schema-faq-answer\">You can only do this if the employment agreement with the particular employee in question allows this situation. Therefore, check the employment agreement before asking any of your employees to work on a public holiday.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>All business owners know that running a business is not easy. One of the challenges is managing their employees and creating a good work culture. The New Zealand government mandates this through public holidays. Businesses should only require employees to work on public holidays if specified in the employment agreement. This article will explain holiday<a href=\"https:\/\/legalvision.co.nz\/employment\/entitlements-to-holiday-pay\/\">Continue reading <span class=\"sr-only\">&#8220;My Employee Was on Leave During an NZ Public Holiday. Are They Entitled to Holiday Pay?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13267,"featured_media":822,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1846,218512,1344,204201,2045,208895","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[5],"tags":[25,54,183,577,888,1050],"class_list":["post-209462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-medium-business","tag-annual-holidays","tag-employment-agreement","tag-public-holiday","tag-holiday-pay"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Employee Entitlements to Holiday Pay | LegalVision New Zealand<\/title>\n<meta name=\"description\" content=\"Are you requesting your employees to work on a public holiday? 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