What are the Requirements for Annual and Special Leave?
The law sets out a number of provisions governing how you must act regarding the annual and special leave of your employees. These provisions form the foundation of all employment agreements put together. The employment agreement cannot waive these obligations, but you can negotiate better terms, if you prefer. These requirements apply to all agreements, even if they have not been included in the formal employment agreement document.
Annual Leave
At the end of every year your employee is entitled to three weeks annual paid leave. This must be paid before the holiday starts and should be calculated at the greater part of:
- The average weekly earning.
- The ordinary weekly pay.
The calculation is simple for people on salaries. When calculating the figures for people on wages, it is necessary to refer to the wage and time records (correctly kept). The annual leave has to be taken at a mutually agreeable time, although you (as an employer) can specify a period that best works in with the requirements of the business. It is best for you to give sufficient notice so the employee can make plans. If the employee leaves before the full year is up, they are entitled to 6% of their gross earnings.
Public Holidays
All employees, including casual, part timers and employees on fixed term agreements, are entitled to 11 paid public holidays if they fall on days the employee would normally work. Any employment agreement can provide for alternative days, but this cannot be less than the 11 public holidays. If the employee works on a public holiday they must receive a paid day’s holiday in lieu, regardless of any penal payments paid for the day worked. On Waitangi Day or Anzac Day there is no requirement to grant a day in lieu.
Special Leave
After six months employment your employee will be entitled to 5 days paid special leave each year. This leave can be taken if they are sick or if their spouse or dependent child or parent is sick or if a close family member dies.
Do Employers have to Provide Parental Leave?
Parental leave is time off work, available by law, to new parents. This leave provides your employee with the opportunity to care for their newborn baby or adopted child under 5 years of age. It is important to note that it is a breach of the Act to discriminate against any women on the grounds of pregnancy. If parents take leave to care for a baby due or born after July 2002, they also receive a tax-funded payment.
Who is Eligible for Parental Leave?
Employers have to provide parental leave for employees who, at the expected date of birth or adoption will have worked for at least 12 months (who has not taken parental leave in the previous 12 months) and an average of at least 10 hours per week, on the basis of at least 1 hour every week or 40 hours every month.