Understanding Managing Holiday and Employee Leave Pay in New Zealand
The JD Edwards EnterpriseOne New Zealand Payroll system enables you to manage annual holiday leave, public holiday leave, sick leave, and bereavement leave. In addition to providing minimum leave entitlements to employees, employers must calculate the pay rates that are associated with leave time according to the regulations of the New Zealand Holiday Act (NZHA). The methods that an employer can use are specified in the legislation.
Employers can also enter into employment agreements with employees. These agreements include the pay rates that the employee will receive for leave time. You can set up special rates to calculate leave pay rates for employees with employment agreements.
Under certain circumstances, employers may regularly pay annual holiday leave pay with the employee's earnings
Depending upon the specific terms of an employment agreement, the type of leave taken, or the method the organization uses, these components are used to calculate pay rates for employee leave:
Leave Component |
Definition |
|---|---|
Average Weekly Earnings |
Average weekly earnings is 1/52 of an employee's accumulated gross earnings for the past 12 months. Average weekly earnings is used to calculate pay for Annual Holidays. |
Ordinary Weekly Pay |
Ordinary weekly pay is the amount of pay the employee receives for an ordinary working week, according to the terms of an employment agreement. Ordinary weekly pay is used to calculate pay for annual holidays. |
Relevant Daily Pay |
Relevant daily pay is the amount of pay the employee would have received had the employee worked on the specified day. Relevant daily pay is used to calculate pay for other holidays, sick and bereavement leaves. |
Special Rates |
Special rates are predetermined pay rates for specified leave types, as defined by an employment agreement. |
Average Daily Pay |
Average daily pay is a daily average of the employee's gross earnings over the past 52 weeks. That is, the employee's gross earnings divided by the number of whole or part days the employee either worked or was on paid leave or on holiday during that period. Average daily pay is used to calc pay for other holidays, sick and bereavement leaves. |