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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 18 Calculation of holiday pay where work ceases periodically

In Plain English
  • This section deals with annual compulsory closedowns.

  • If an employee has been employed for less than a year, they are to be paid 6% of their accumulated gross earnings.

  • The date of the annual closedown then becomes their new anniversary date. At the closedown the following year, they will be entitled to 3 weeks paid holiday.


Legislation

18.1 Where it is customary for any employer to allow the whole or any part of any annual holiday to his workers or to any class of his workers during a period in each year when his premises are closed or the work of those workers is for any reason discontinued, and at the date of commencement of that period any such worker has not under section 11 of this Act become entitled to an annual holiday, the holiday pay of that worker in respect of that period shall, subject to any agreement made under section 12.4 of this Act, be calculated in accordance with this section.

18.2 In respect of the period of closure or discontinuance of work referred to in subsection (1) of this section, the holiday pay of the worker shall be an amount equal to 6 percent of his gross earnings during the time from the date of commencement of his employment up to the date when the premises are closed or the work is discontinued.

18.3 Notwithstanding subsection (2) of this section, the employer may deduct from the amount of holiday pay assessed under that subsection all amounts already paid to the worker in accordance with section 17 of this Act in respect of any annual holiday to which he has not become entitled under section 11 of this Act at the date when the premises are closed or the work is discontinued.

18.4 Subject to subsection (6) of this section, but notwithstanding any other provision in this Act, a worker who receives holiday pay calculated in accordance with this section shall not otherwise be entitled to any annual holiday in respect of the period of his employment up to the date of the closure or discontinuance of work, or to any remuneration in respect of the period of the closure or discontinuance of work.

18.5 For the purposes of this Act, where a worker receives holiday pay calculated in accordance with this section, the next year of his employment shall be deemed to commence on the date when the premises are closed or the work is discontinued.

18.6 Nothing in this section shall be deemed to deprive any worker of any right or benefit to which he is entitled under any other Act [or any employment contract].

18.7 Where during the employment of any worker to whom this section applies he is unable to work because of sickness or injury, then, for the purposes of this section the term "gross earnings", in relation to that worker, includes in respect of each complete week of absence through that sickness or injury an amount equal to the amount of ordinary pay that he would have received had he not been absent, reduced by the amount of sick pay received by him in respect of that week or any part of that week.

18.8 For the purpose of assessing a worker's holiday pay pursuant to this section, the employer may fix a cut-off date other than the anniversary of the commencement of the worker's employment.

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

In subs. (6) the words in square brackets were substituted for the words ``, award, or agreement'' by s. 11 of the Holidays Amendment Act 1991.

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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