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use a common holiday anniversary

anniep
Experienced Cover User
34 Posts
Experienced Cover User
New Zealand
Experienced Cover User

34Posts

3Kudos

0Solutions

use a common holiday anniversary

Good morning 

 

We have run our MYOB payroll for years with a common anniversary date of 23 Dec as we have a three week annual shut down at Christmas. 

 

My accountant has said a common anniversary date is not allowed as it does not compliy with the NZ Holidays Act 2003 and cited below.. 

All employees, regardless of their classification (ie including part time, full time, fixed term and 'casual') but not including the Armed Forces, are entitled to at least:

four weeks of paid annual holidays (sometimes referred to as annual leave) after each 12 months of continuous employment for their employer, for rest and recreation.

 

To change employees over to the annivesary of their start date and work out their leave balances / Holiday pay will require some work. 

Could some  one please confirm with supporting evidence that a common anniversary date is actually permissible?? 

 

Many thanks. 

 

1 REPLY 1
jenniek
Ultimate Partner
2,789 Posts
Ultimate Partner
New Zealand
Ultimate Partner

2,789Posts

1,074Kudos

351Solutions

Re: use a common holiday anniversary

Hi @anniep 

I am not aware it is "not allowed" - what employment.govt.nz says is that if there is a shutdown employees must get 14 days notice of the shutdown and a requirement to take leave. If they have leave owing then can take that leave. For employees who have not worked 12 months and there is not enough leave owing then the employee should be paid 8% of their earnings - and can take leave in advance or leave without pay in agreement with the employer. I would look at this link https://www.employment.govt.nz/leave-and-holidays/annual-holidays/annual-closedowns/

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz

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