Five essential things employers need to know for the summer holiday period
We have found the below Q&As via the Employment New Zealand newsletter: a handy round-up of the holiday legal employment rights and obligations that you need to be aware of as an employer – it's especially important as we enter the Christmas and New Year season. With a little planning and preparation, you can avoid problems later on.
Have a good read, and get in touch if you have questions!
Can I close down my business over the holiday period and require staff to take annual leave?
You can have an "annual close down" for your whole business or part of it, but you must comply with the legal rules that include:
Employees must be given at least 14 days' notice in writing.
Employees can be required to use their existing annual leave (annual holidays) to cover the close down period.
If they don't have sufficient leave, they can take leave without pay or you both can agree to them taking annual leave in advance.
I need my employee to work during the Christmas and New Year holidays. What do I need to do?
You can only make your employees work on a public holiday if 2 conditions are met:
the public holiday falls on a day the employee would otherwise have worked, and
the requirement to work on the public holiday is noted in their employment agreement.
Unless these conditions are met, your employee does not have to agree to work during a public holiday.
How much do I need to pay them, if they work on a public holiday?
When the public holiday falls on the day an employee would normally work, they are entitled to be paid time and a half for all the hours actually worked, plus a paid day off at another time. If the holiday does not fall on a day they normally work, they are entitled to just pay of time and a half.
Do I have to allow my employees to cash-up their annual holidays?
Employees can request to cash-up up to one week of their minimum 4 weeks' annual holidays in any entitlement year, provided you agree. To decline their request you have to do this in writing, but you don't have to give a reason.
My business is really busy, can I cancel my employee's approved annual leave?
You cannot cancel your employee's approved annual leave, unless they agree to it. They may have already paid for all or part of the holiday or organised the holiday with the rest of their family. If you would like your employee to cancel their leave, you should approach them in good faith and make sure that there are no consequences if the employee declines to cancel their leave.
For more information, visit employment.govt.nz and search "Annual close downs", "Public holidays" and "Cashing up annual holidays".
Wishing you and your team a happy and safe holiday season,
Lisa-Jean
December 2020