29 May 2018: A taskforce that brings business, workers and Government together has been established to recommend changes to the Holidays Act 2003, says Workplace Relations and Safety Minister Iain Lees-Galloway.

Dramatic Changes to the Holidays Act 2003

The Holidays Act 2003 will shortly undergo some of the biggest changes since it came into force on 1 April 2004. The Government established a Holidays Act Taskforce to review the Act and suggest improvements to address what was seen as a complicated and ambiguous Act. There were concerns that there was widespread non-compliance particularly around the payment of leave, primarily because of issues with the way the legislation was interpreted by payroll systems. This was particularly problematic for employees who did not work a 5 day / 40 hours a week pattern.

Regular In The Context Of The Holidays Act And Annual Leave Court Of Appeal Judgement

A recent decision by the Court of Appeal has potentially changed the way employers calculate and pay annual holidays, after the meaning of the word “regular” was defined in the context of the Holidays Act 2003 (the Act). Specifically, the Court considered whether productivity or incentive-based payments should be excluded from the ordinary weekly pay calculation contained in s 8(2) of the Act.

Holidays Act Information Christmas Years 20162017

This year the recognised Public Holidays over the Christmas and New Year period are as follows:

Collective Agreement Defining Otherwise Working Day Binding

A collective agreement (CA) between Holcim (NZ) Ltd (the employer) and the New Zealand Merchant Service Guild IUOW Inc (the union) which covered masters, deck officers and engineering officers on two named vessels defined what would be an “otherwise working day” for the purposes of the Holidays Act 2003.

Cashing Annual Leave

The Holidays Act 2003 provides that on one or more separate occasions an employee can request that his or her employer pay out a portion of the employee’s annual leave entitlement. There are conditions and restrictions to this cashing up provision (sections 28A-F), the main ones of which are outlined below:

Why commission payments can put your business at risk: New Court of Appeal Judgement on calculation of annual leave

A recent decision by the Court of Appeal has potentially changed the way employers calculate and pay annual holidays, after the meaning of the word “regular” was defined in the context of the Holidays Act 2003 (the Act). Specifically, the Court considered whether productivity or incentive-based payments should be excluded from the ordinary weekly pay calculation contained in s 8(2) of the Act.

Key Decision Holiday Pay Ordered Incentive Payment Post Termination

A company that agreed with an employee to pay him an incentive payment if he remained with it until a certain date, or was made redundant or unjustifiably dismissed prior to that date, found that it was obliged to pay holiday pay on the incentive payment when it made him redundant.

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