Section 9(3) specifically provides for employees that have an irregular work pattern. We highlight it below.
| Section 9 |
Meaning of relevant daily pay
(1) In this Act, unless the context otherwise requires, relevant daily pay, for the purposes of calculating payment for a public holiday, alternative holiday, sick leave, or bereavement leave,
(2) To avoid doubt, if subsection (1)(a) is to be applied in the case of a public holiday, the amount of pay does not include any amount that would be added by virtue of section 50.
(4) However, an employment agreement may specify a special rate of relevant daily pay for the purpose of calculating payment for a public holiday, alternative holiday, sick leave, or bereavement leave if the rate is equal to, or greater than, what would otherwise be calculated under subsection (1) or subsection (3).
The purpose of Section 9(3) is to provide an averaging mechanism for employees that work irregular hours.
What it effectively says is that to arrive at a daily rate you
The result of this calculation becomes the employee's Relevant Daily Pay.
The following dialog is shown
In the dialog shown in Step 2 above note the following
Daily Rate Calculation
| || |
How can I enter a part day for the calculation, such as 19.5?
With the Irregular Work Pattern calculation, what happens in the event of partial days. For example, if the employee has worked 25.5 days, do I divide the gross by 25.5 days, or by 26 days? How can I enter a part day for the calculation, such as 25.5?
This question was recently asked of us by a client who had been told by their employment lawyer that the gross should be divided by 25.5 days. Our understanding of the legislation is that if an employee works any time on a day, it is counted as one whole day for the Irregular Work Pattern calculation.
The client then contacted the Employment Relations Service for clarification. The question as asked by the client was
If an employee works an irregular work pattern and has a day off sick, please can you confirm the calculation of their relevant daily pay from the following information: -
Should the RELEVANT DAILY PAY be divisable over 25.5 days or 26 days??
The legislation clearly states in Section 9 (3) b, division 'is the number of whole or part days during which the employee earned those earnings in the 4 calendar weeks, ...'
Our company operates the ACE Payroll system for payment of our clients wages and the system only allows for division under IRREGULAR WORK PATTERN in whole days, not part days. Their interpretation of the legislation is that even if a person only works for one hour on a day, it should be counted as a full day for purposes of calculating their RELEVANT DAILY PAY.
Could you please clarify what the legislation's intention is and reply in writing to my question?
The Employment Relations Service then replied back to our client with the following answer
The Act does not allow for days to be divided into smaller units, therefore if an employee works a part day that is considered to be a whole day for the purposes of the formula for calculating relevant daily pay. Based on the information you have provided in your email, the employee's total gross earnings should be divided by 26 days being the number of whole or part days during which the employee earned those earnings in the 4 calendar weeks before the end of the pay period immediately before the calculation is made.
| || |
Why can't I use the "Irregular Work Pattern" method for holiday pay?
Payment For Sick Leave If Taken On A Public Holiday
You are not required to pay your staff time and a half if they call in sick on a public holiday they would have otherwise worked more..