As the holiday season approaches, it is timely to remind employers of their obligations for annual leave and casual labour.
Annual leave payments are calculated at the greater of the ordinary average weekly pay at the time the holiday is taken or the employee’s average weekly earnings over the twelve month period before the annual leave is taken.
Child support, Kiwisaver and student loan deductions continue to be deducted at the normal rate from an employees holiday pay.
Employees are entitled to two weeks of their annual leave as uninterrupted annual leave. Employers are entitled to determine when annual leave is to be taken.
Further, if your business has a ‘closedown’ or ‘shut’ period that includes public holidays (such as Christmas or New Years), employees are entitled to be paid for the public holidays if it would otherwise be a working day for the employee.
Casual employees are required to complete a tax code declaration form and be taxed through the payroll system. If the contract is less than 28 days, the employee will not be automatically enrolled in Kiwisaver. Unless you have received an exemption certificate, student loan deductions are required where applicable.
If you have any queries regarding your wages for over the holiday period, please contact Rina in our office.