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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.
- We first look at the criteria for payment of time and a half for working on a Public Holiday.
- We then look at the way in which payment for sick leave is calculated.
- We look at the definition of "Relevant Daily Pay".
- Using the above information, we then examine the various conclusions that can be drawn when paying for sick leave that is taken on a public holiday.
Time And A Half Payment
Payment of time and a half is provided by Section 50. We added the bold and underlines - the legislation itself is plain text.
| Section 50 Employer must pay employee time and a half for working on public holiday (1) If an employee works (in accordance with his or her employment agreement) on any part of a public holiday, the employer must pay the employee at least the portion of the employee's relevant daily pay that relates to the time actually worked on the day plus half that amount again. (2) This section is subject to section 51 (Transitional provision for employers who already pay for work on public holidays in employee's regular pay). |
There are two important points to keep in mind from this section
- First, note our highlighting of time actually worked on the day.
- The other point to remember is the calculation method - relevant daily pay ... plus half that amount again. You will understand why shortly.
Payment For Sick Leave
Payment for sick leave is covered by Section 71. The highlighted subsection 1 requires payment of the employee's relevant daily pay.
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Section 71 Payment for sick leave and bereavement leave
(2) Despite subsection (1), an employer is not required to pay an employee for any time for which the employee is paid weekly compensation under the Injury Prevention, Rehabilitation, and Compensation Act 2001 or former Act. (3) An employer must not require an employee to take as sick leave any time for which the employee is being paid
(4) However, if an employer pays the difference between the employee's first week compensation or weekly compensation and ordinary weekly pay , the employer may agree with the employee that he or she may deduct from the employee's current sick leave entitlement 1 day for every 5 whole days that the employer makes that payment. |
Relevant Daily Pay
Relevant Daily Pay is a defined term under the Act, and is used for calculating payment for sick, bereavement, public holidays taken, and alternative holidays taken.
We have highlighted in red the clause that specifically excludes the 50% loading from these calculations.
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Section 9 Meaning of relevant daily pay
(3) If it is not possible to determine an employee's relevant daily pay under subsection (1), the pay must be calculated in accordance with the following formula: a div b where ais the employee's gross earnings for b is the number of whole or part days during which the employee earned those earnings in the 4 calendar weeks, or longer period (as the case may be) including any day on which the employee was on a paid holiday or paid leave; but excluding any other day on which the employee did not actually work. (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). |
Conclusion
The above three sections clearly indicate that time and a half is not paid for sick leave taken on a public holiday. Look at it this way
- Section 71 requires payment of the employee's relevant daily pay for a days sick leave.
- Section 50 requires payment of one and a half times the employee's relevant daily pay for time worked on a public holiday.
- Accordingly the total amount paid for working on a public holiday is not the employee's relevant daily pay - it is the employee's relevant daily pay plus half that amount again, as very clearly stated in Section 50.
- To become entitled to the 50% loading, an employee must actually work on the day, as also very clearly stated by Section 50. The employee cannot have "actually worked" if they are off sick.
- Furthermore, Section 9(2) specifically excludes the 50% loading.
More on public holidays
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Public Holiday Entitlements Ace Payroll receives many calls immediately after every public holiday, asking whether a particular employee is entitled to be paid for the public holiday more.. |
Public Holiday Taken Use this method for an employee who did not work on the public holiday, but would have worked had the day not been a public holiday more.. |
Public Holiday Worked Use this method for an employee who works at any time on a public holiday more.. |
| Public Holiday Calendar A facility in Ace Payroll to check when public holidays fall in this and future years more.. | Christmas and New Year 2016/2017 Working out public holiday entitlements during the 2016/2017 Christmas and New Year holiday period more.. |
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Waitangi Day Waitangi Day commemorates the signing of a treaty at Waitangi on 6 February 1840 more.. |
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Queen's Birthday The Queen's Birthday is always observed in New Zealand on the first Monday in June more.. |
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Default Provincial Anniversary Day Select the provincial anniversary day observed by the majority of your employees to make it the default more.. | 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.. |
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Ace Payroll FAQ Contents All the most common Ace Payroll questions grouped by categories in a short table of key words more.. | Ace Payroll Frequently Asked Questions All the most common questions we are asked at Ace Payroll listed in a question format and grouped by category more.. |
More on holiday pays
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Cashing Up Holiday Pay From 1st April 2011 it is legal for an employee to cash up to one weeks annual leave each year more.. |
Understanding Termination Accruals Handling of accrued holiday pay upon termination can be confusing. Ace Payroll explains the concept of accruals and demonstrates how termination pay is calculated more.. | Holiday 52 Week History It is not absolutely necessary to enter a full 52 week earnings history for correct holiday pay calculation more.. |
| Holiday Pay - Daily Rates An explanation of the calculation of a daily rate for an employee taking holidays after a full years service more.. |
Employee Leave Profile The employee leave profile records which are the normal days worked by an employee more.. |
| Casual Holiday Each Pay This tutorial shows how to have Ace Payroll automatically pay a casual employee 8% holiday pay every time they are paid more.. |
Taxation of Holiday Pay This article shows how easy it is to tax holiday pay according to IRD requirements more.. |
Annual Compulsory Closedowns An annual compulsory closedown is where a business traditionally closes down for a number of weeks each year, usually over Christmas more.. |
| Changing Holiday From 8% Each Pay The procedure for changing a casual employee over to being a permanent employee in Ace Payroll for holiday pay purposes more.. |
Termination Holiday 8% Part Year Payment How to pay the 8% of part year gross for an employee who has been employed for more than a year, receives four weeks holidays a year, and is terminating their employment more.. |
| Holiday Pay Miscellaneous The reason why only full days holiday pay owing is shown on payslips rather than fractional days more.. |
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Ace Payroll FAQ Contents All the most common Ace Payroll questions grouped by categories in a short table of key words more.. |
Ace Payroll Frequently Asked Questions All the most common questions we are asked at Ace Payroll listed in a question format and grouped by category more.. |
Other leave sections
| Public Holiday Entitlements Ace Payroll receives many calls immediately after every public holiday, asking whether a particular employee is entitled to be paid for the public holiday more.. |
Public Holiday Taken Use this method for an employee who did not work on the public holiday, but would have worked had the day not been a public holiday more.. |
Public Holiday Worked Use this method for an employee who works at any time on a public holiday more.. |
| Alternative Holidays An Alternative Holiday is a day an employee is entitled to take off as paid leave, in return for having worked on a public holiday more.. |
Annual Holiday Entitlements This article looks at entitlements to holidays as provided for by the Holidays Act more.. |
Annual Holiday Payments This tutorial shows how to record holiday pay taken using the Annual Leave method more.. |
| Irregular Work Pattern In this article we look at the calculation of Relevant Daily Pay for an employee that works irregular hours more.. |
Leave Owing Report The Leave Owing report provides an estimate of holiday pay owing to all staff at a selected date more.. |
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Ace Payroll FAQ Contents All the most common Ace Payroll questions grouped by categories in a short table of key words more.. | Ace Payroll Frequently Asked Questions All the most common questions we are asked at Ace Payroll listed in a question format and grouped by category more.. |