Annual_Leave

Employee's Entitlements to Annual Leave
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Overview:
Annual leave is holiday time given to employees. Normally, a company or organization will figure annual leave in one of three ways. The employee works for a year prior to time off given. How much vacation time given is based on years worked. An example is 1 year to 4 years worked equals 2 weeks of vacation, 5 to 9 years worked equals 3 weeks’ vacation, and anything over 9 years equals 4 weeks. So after an employee has worked 1 year, he is given the vacation time he has earned. It is a means for the worker to balance between work and other aspects of employee’s lives. Entitlements for annual holiday provide the opportunity for rest and recreation for the worker

An employee engaged on a permanent term agreement of less than 12 months and is then occupied on a permanent basis by the same employer become entitled to pay annual holiday at the end of 12 months or on a continuous employment which includes the period of the fixed-term agreement. The holidays act applies to all employees, except those in the armed force. Its adopts key definition from the employment relation act 2000 ( s 5) in which case an employee as any person of any age employed by an employer to do any work for hire or reward under the contract of the services All employees have their minimum entitlement to holiday and leave determined by the holidays act. Its applies to full time, part time, permanent, temporary and casual workers- provided they are engaged under employment agreement and are not independent contractor or self employed- and at all level of the organisation, from the chief executive to the shop floor attendant.

What paid and unpaid leave is available?
Unpaid leave of more than one week is not included in the 12 month of continuous employment unless both the parties agree. If an employee takes unpaid leave of more one a week during the year, the employer may choose to extend the qualifying continuous employment period by the length of the unpaid leave, alternatively, the employer and the employee may agree to modify the employee’s average weekly earnings calculation to reflect the time the employee was on unpaid leave. Annual close-down

Employees who are required to discontinue work during an employer’s regular close-down period because they have not completed 12 months of continuous employment and have not qualified for annual holidays. However, so that those employees do not have different annual leave entitlement dates every year because key days like Christmas Day moves around the calendar an employee may nominate date reasonably close to the actual start of the close-down period that will be treated for these purpose as the date on which the close-down begins. Holidays in advance An employer may allow an employee to take annual leave is advance before completing the 12 month of continues employment if both parties agree.

Calculating the holiday pay:
The calculation of annual holiday pay depends on the employee’s circumstance at the time the holiday is taken and not at the time when the employee becomes entitled to the leave. This can be an important distinction if an employee’s earning changes from time to time as they do for employee who work overtime or receive work specific allowances or if an employee receives a pay increase between the time of qualification and the time of starting holiday. An employee who completes 12 month of continuous employment this is a normal situation the holiday pay is calculated at a rate based on the greater of the employee’s ordinary weekly pay and holiday can be divided so that the total pay entitlement for the period of four week is paid to the propionate day of the leave taken.

An employee can take leave in advance if the employer agrees. If the employment last less than 12 months then the 8% is added to the employee’s gross earning since the employment begins. If employment ends earlier the employee is entitled for holiday pay which is added in the final pay.

Which area of law covers Annual Leave?
Annual Leave is covered by the ‘Holiday Act 2003 and ‘Parental Leave and Employment Protection Act 1987'. The Act aims to protect employee's rights and entitles those who are eligible to 4 weeks paid annual leave. Annual leave is exclusive of public holidays.

More information can be found by visiting the following websites:

 * [|www.legislation.govt.nz/act/public/1987/0129/latest/DLM120104.html]
 * Rudman Richard, 2010 New Zealand Employment Law guide :CCH New Zealand Limited
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