As we do each year, we set out the implications associated with correctly paying staff over the upcoming Christmas New Year break.
This year Christmas and New Years days fall on a Sunday and Boxing Day and the day after New Year fall on Mondays.
The ‘deferred’ Public Holiday rule will therefore apply to Christmas and New Year’s Day with these then being recognised as being deferred to the Tuesday of each week.
Boxing Day and the Day After will however be recognised on the Mondays that they actually fall, ironically meaning that the Boxing Day holiday will precede the Christmas Day holiday.
In simple form:
· Sunday 25th December – Christmas Day
For employees who generally work on a Sunday, the Public Holiday will be recognised and taken on this day.
For employees who don’t usually work on a Sunday, the Public Holiday will be deferred and recognised as being taken on Tuesday 27th December.
· Monday 26th December – Boxing Day
For all employees who usually work on a Monday, the Public Holiday is recognised and taken on this day.
· Sunday 1st January – New Years Day
For employees who generally work on a Sunday, the Public Holiday will be recognised and taken on this day.
For employees who don’t usually work on a Sunday, the Public Holiday will be deferred and recognised as being taken on Tuesday 3rd January.
· Monday 2nd Jan – Day after New Year
For all employees who usually work on a Monday, the Public Holiday is recognised and taken on this day.
Remember, for any employee who is required to work on a Public Holiday that falls on a day that is an ordinary day of work for them, they shall be paid T0.5 extra for each hour worked, in addition to the payment of their Relative Daily Pay (what they would usually get for working that day) and they will also be entitled to an Alternative Day (Day in Lieu) to be taken at a later agreed date.
If you have new employees who commenced work after January 2022, and you are having a company shutdown, the Employment Court clarified earlier this year the correct interpretation of the Holidays Act 2003, as to how to treat their annual leave entitlements. This being:
· The employees leave entitlement should be calculated as 8% of total Gross Income earned from the date of their commencement, until the commencement of the shutdown period – less any leave taken and paid in advance.
· Technically, at the commencement of the shutdown period, the employee should then be paid out all leave owing with the commencement of the shutdown period then becoming their new anniversary date for the calculate of subsequent year (4 week per annum) leave entitlements.
· However, if the employee does have a leave balance in excess of the length of the shutdown period, with their authorisation, it may be agreed that only sufficient leave is paid out at the commencement of the shutdown period and the balance being retained to be taken at a later date – technically however the leave anniversary date should still default to the commencement of the shutdown period for future calculations.
This year has been another very successful year for the team at Russell Drake Consulting and EMA Waikato as we have worked hard to interpret and apply changes to employment legislation, and Case Law from the Employment Relations Authority/Employment Court, to ensure that we continue to provide the best levels of service and advice to our clients.
2023 is sharping up to be a significant year for employment relations in NZ as we anticipate the passing of the Holidays Act 2023, the implementation of Fair Pay Agreement legislation, a predicted recession, and a General Election.
On behalf of the Team at Russell Drake Consulting and EMA Waikato we wish to thank all of our clients for your continued support during 2022 and your relationship to our business. We wish you all a Merry Christmas and a prosperous 2023.
Our office will be closed from Friday, 23 December 2022 through to Monday, 9 January 2023. However, if there are any urgent matters you need assistance with throughout this period please feel free to contact Russell on mobile 021 686 621 or email russell@russelldrakeconsulting.co.nz and we will get back to you as quickly as possible. Alternatively, call our office number (07) 838 0018 and you will be transferred to Russell directly.
Russell, Linda-Maree, Ursula, Jana, Shiv, Jordyn and Annaliese.