Holiday's Act and MacBusiness Payroll

Holiday's Act and MacBusiness Payroll 5 April 2016

There has been much publicity in the press recently about holiday pay, some of it of dubious value in our opinion.

Reading between the lines, however, the issue seems to be about leave payments for employees with irregular work patterns and additional payments. 

MBIE released a statement last Thursday which suggests the employers they have investigated were not accurately recording fluctuating hours and additional payments, and consequently did not apply the appropriate rules when paying leave for those employees.

You can read MBIE's statement in full at:

http://www.mbie.govt.nz/about/whats-happening/news/2016/labour-inspectorate-investigates-employers-for-holiday2019s-act-breaches

In MacBusiness Payroll we provide guidelines for dealing with employees in this situation via the View Leave button on the pay run window.

We are confident if you are entering employee's hours correctly, have their leave settings configured correctly, and are following the guidelines on the View Leave window you are complying with the Holidays Act.

The rules for paying leave are complicated and in some cases open to interpretation. Business groups and the New Zealand Payroll Practitioners Association have been requesting simplification and clarification of the Holidays Act for years without any progress to date. We can only hope this latest incident will result in some action.

Back