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Bullswool's avatar
Bullswool
Trusted User
1 month ago

NZ Annual leave and averaging

Hi,

A question about how the average rate is calculated for New Zealand annual leave. 

 

Our old NZ MYOB pay system (NZ Desktop) used to calculate the average rate by using the previous 52 weeks and working out the weekly average rate. I think this is considered section 8(1) of the Act, but don't quote me.

 

Our new NZ MYOB pay system (Acumatica) uses the 52 week method AND the 4 week rolling average, and then selects the higher of the two averages. I think this is sections 8(1) and 8(2).

Using this second method can create a huge difference in the annual leave rates.

 

We employee regular set roster full time and regular set roster part time employees.

Our employment contracts only mention we pay in accordance with the Holidays Act.

 

Which is the correct method?

 

 

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