2020 has been a crazy year, many of us have had planned trips cancelled or postponed and have either lost money or now hold airline credits that we have no idea when or if we will be able to use.
Annual leave will also have been rescheduled or postponed, but we are now getting to the time when many staff will be considering summer holidays. It needs to be acknowledged that the year has been a very difficult one for many and if staff haven’t managed to have some leave, they probably need to have a break from work to rest and recharge.
An employee’s entitlement for annual leave will be outlined in their employment agreement. The minimum legislative requirement is four weeks entitlement after 12 months continuous employment. ‘Weeks’ means an employee's ordinary working weeks, so a part-time employee who works 3 days per week is entitled to 4 weeks’ holiday of 3 days each, or 12 days per year.
Most employers allow new employees to take leave as it accrues during the first 12 months. Be careful if you allow more leave than accrued, or you could be out of pocket if the employee leaves before they accrue the leave they already have taken. We recommend a signed agreement between you and the employee that allows you to deduct leave taken in advance from the final pay to protect you.
Having a leave policy that formalises the leave application process, will allow you to manage applications fairly, especially, during the popular holiday periods Christmas, New Year and Easter. In our annual leave content we have a template annual leave policy and application form that you can customise to meet your practice needs.
For permanent employees entitled holiday pay is paid at the rate of the greater of the employee’s ordinary pay, or average weekly earnings over the last 12 months. This does not apply to employees returning from parental leave, where there are different requirements.
For casual employees or employees employed for a fixed term of less than 12 months, you may pay holiday pay with their regular pay at the rate of 8% of their gross earnings.
If any of your employees have irregular or changing work patterns, calculating annual leave and holiday pay entitlement can be complicated. For guidelines on how to manage this see Employment NZ Establishing Entitlements.
As well as organising a leave schedule for your staff that suits the practice, now may be a good time to sort some leave for yourself.
If you have any questions on leave you call the HealthyPractice team on 0800 800 627 or email email@example.com.
Other recent articles
6 July 2021
Increase to Sick leave entitlements From 24 July the sick leave entitlement increases to 10 days per year. The extra 5 days is applied after the completion of 6 months continuous employment, or on the next sick leave entitlement anniversary (12 months after the previous entitlement). This means that anyone employed after 24 January 2021 will be entitled to 10 days sick leave.
1 June 2021
We’re really pleased to welcome Bryce Pullan to the team as a Business Adviser, he will be working with us on Monday and Tuesday. Like all of the team Bryce has been with MAS for some time and is looking forward to supporting Members and their practices. Bryce joining us, has allowed Chris to achieve her dream of a four-day working week, Tuesday to Friday and Chris is very much enjoying her three-day weekends. Emailing us your queries to firstname.lastname@example.org generally means we can respond the same day especially if you send before midday. If your query is urgent just let us know in your email subject line or call 0800 800 627 and ask for the HealthyPractice team.
4 May 2021
The celebration is starting with a staff conference to be held this Thursday and Friday (6-7 May) and the HealthyPractice team will have limited availability to respond to your queries during this time. Email would be the best way to be in touch on these days and our response time might be delayed. We appreciate your understanding.
Join other practices already using HealthyPractice.Register now