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Guide to Holidays Act 1981

Note: This is the text of the old Act that remains in force until 31st March 2004. From 1st April 2004 leave is governed by the Holidays Act 2003

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Section 17 Calculation of holiday pay where annual holiday taken in advance

In Plain English
  • This section explains the holiday pay calculation for an employee that has been employed for less than a year, and is continuing their employment.

  • There is no legal obligation to advance holiday pay to an employee under these circumstances. An employee only becomes entitled to paid leave after 12 months service.


Legislation

17.1 Where, pursuant to an agreement made under section 12.4 of this Act, a worker takes any annual holiday wholly or partly in advance, his holiday pay in respect of the whole of the holiday shall be calculated in accordance with this section.

17.2 In respect of each period of his annual holiday that a worker takes in advance, his holiday pay shall be an amount equal to the same proportion of 6 percent of his gross earnings during the specified time as the period taken in advance is to 3 weeks.

17.3 Where a worker has not completed at least 3 weeks of employment from the beginning of the year in respect of which he will be entitled to an annual holiday, subsection (2) of this section shall not apply, but instead his holiday pay in respect of each period of his holiday that he takes in advance shall be an amount equal to 6 percent of the total ordinary pay earned by him during the specified time, less all amounts already paid to him under this subsection in respect of all other parts of that holiday taken during the specified time.

17.4 In subsections (2) and (3) of this section, the term "the specified time" means the time from the beginning of the year in respect of which the worker will become entitled to the annual holiday up to the date when he begins to take the period of the holiday referred to.

17.5 Where a worker who has taken his annual holiday wholly or partly in advance becomes entitled to that holiday under section 11 of this Act, his employer shall assess the total amount that would have been payable to the worker under section 16 of this Act in respect of that holiday if the worker had not taken any part of that holiday in advance, and shall pay to the worker the amount so assessed reduced by the amount of holiday pay paid in respect of so much of his annual holiday as has been taken in advance. That amount shall be paid, in the case of a worker who has taken the whole of his annual holiday in advance, at the end of his year of entitlement, and, in the case of any other worker, at the time specified in section 19 of this Act.

17.6 Notwithstanding any other provision in this section, the holiday pay of a worker (other than a worker to whom subsection (3) of this section applies) in respect of any period of his annual holiday shall in any event be at a rate not less than the rate of his ordinary pay at the date when he begins to take that period of his holiday.

Cf. 1944, No. 5, s. 3B; 1974, No. 149, s. 3

Alphabetical index to entire website Index to legal articles Index to the Holidays Act Previous section Back to top Next section
More on processing holiday pays
 52 week history not required  Changing holiday from 6% each pay
 Holiday pay - daily rates  Termination 8% Part Year Payment
 Using the leave calendar  Termination holiday includes current
 Employee leave profile  Holiday pay for salaried staff
 Taxing of holiday pay  Leave owing report is estimate
 Annual compulsory closedowns  Holiday pay miscellaneous
Alphabetical index to entire website FAQ's listed in long question format FAQ's listed in brief table by subject More help with selection of FAQ's Back to top
More on the Holidays Act
 Holidays Act 2003 overview  No penal payments if called back from leave
 Holidays Act 2003 full text  Payments for statutory holidays
 Relevant Daily Pay - Irregular Work Pattern  Holiday pay entitlements
 Heinz Wattie day definition  Annual compulsory closedowns
 Employment Relations Service FAQ's  More holiday pay information
 Cousins included in bereavement  Holiday pay miscellaneous
 Sick paid in first six months is gift  ERS - How is holiday pay worked out?
 Employee can go fishing while sick  Taxing of holiday pay
 Can use sick leave for first weeks ACC  Public holiday entitlements
 No holiday pay on redundancy  Time Bank
 Annual leave accumulates until taken  
Alphabetical index to entire website Index to legal articles Back to top
More on Public Holidays
 Public Holiday Taken  Christmas New Year 2006/2007
 Public Holiday Worked  Labour Day 2006
 Sick Leave On Public Holiday  Queen's Birthday 2006
 Default Provincial Anniversary  ANZAC Day 2006
 Public Holiday Calendar  Public holiday entitlements
 Easter 2006  Employment Relations Service FAQ's
 Waitangi Day 2006  Allowing days in lieu
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Updated: 27th February 2006
Published: 10th January 2000
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