Newsletter December 2012
Statutory Days Over Christmas/New Year
Guidelines for working out wages over this period:-
This year Christmas Day, Boxing Day, New Year’s Day and the 2nd of January all fall on week days. This makes calculating payments for these days and identifying entitlements to alternate holidays straight forward. All employees who work on a public holiday are to be paid 1.5 times their hourly rate for the hours worked.
Employees who are paid a salary are not paid 1.5 times a normal days pay, they are paid only for the hours worked. Employers can choose to pay more than the minimum required by the Holiday’s Act, but they cannot pay less.
If the employee would have otherwise worked had it not been a public holiday then they are also entitled to an alternate day (lieu day). A casual employee or an employee who would not have normally worked that day had it not been a public holiday are to be paid at time and a half, but are not entitled to an alternate holiday.
Example:- Sam a salaried employee usually works Monday to Friday; he works 4 hours on Christmas Day (a Tuesday) and has Boxing Day off. He would be paid 3 days salary, one statutory holiday for Boxing Day, 4 hours at time and a half for Christmas Day, as well a being entitled to an alternate day. If he didn’t normally work Tuesdays then he would still be paid 4 hours at time and a half but he would not be entitled to an alternate holiday.
Employees on Rosters
If the employee is on a roster system and they are rostered on to work on the public holiday then this is considered a normal work day. If they work the day then they are entitled to be paid time and a half as well as being awarded an alternate holiday to be taken at a later date. If the employee is rostered off on the public holiday, but works that day, they are paid at time and a half but since it is not a normal work day they are not entitled to an alternate day.
If the employee is rostered to work the public holiday but they have the day off, they are entitled to be paid for a public holiday – usually a normal days pay. If the employee was rostered off the public holiday and they don’t work then there are no additional payments to be made.
Casual Employees
A casual employee is generally an employee who works on a when and as required basis. They have no set hours or roster. If you have ‘casuals’ who are working regular hours/days then their casual status should be reviewed. If they have worked most Tuesdays or Wednesdays in the last six or so weeks, or they are on a roster then perhaps they are also entitled to alternate holidays if they work on a public holiday. If this is the case, please call us to discuss.
Christmas Payroll Processing
As we will be closed from 21 December at 5pm to 7th January 2013, we would greatly appreciate it if you could advise the hours for wages as early as possible in the week commencing 17 December. This will enable us to set up the wages due during that fortnight.
All employers will be contacted in the two weeks before the 21/12/2012. Any wages that are due on the statutory days will be set up to go out on the night of the 24th December for wages due on the 25th to 27th and the 31st December for the 1st to 3rd January 2012 but can be paid before this date if you wish.
Any time worked on the statutory days will be paid at the correct rate in the pay period following the statutory holiday.
Should you have any queries please do not hesitate to contact the team.
MYOB have released their online or “cloud based” system. It gives the choice to work on your desktop, in the cloud or both. The benefits include being able to work anywhere you have an internet connection. The software automatically imports bank statements, allows for multiple users at the same time plus all the features of the MYOB software. MYOB may be in contact with you shortly but please feel free to call us to discuss your own requirements.
Leave Entitlements
How do you establish an employee’s entitlement to annual holidays?
Employees get their annual holiday entitlements on their anniversary of starting work. An employer and employee may agree on what four weeks’ annual holiday means in their circumstances. Any agreement should be recorded.
Where an employee is employed on a genuine fixed-term agreement of less than 12 months, the employee may be paid annual holiday pay with their salary (i.e. on a pay-as-you-go basis).
Many types of employees are described as “casual employees”. Where an employee’s employment pattern is so intermittent or irregular that it is not possible or practicable to attempt to provide four weeks’ paid annual holidays, the employee may be paid annual holiday pay with their regular pay (i.e. on a pay-as-you-go-basis). Employees paid on a pay-as-you-go basis do not become entitled to time off for annual holidays.
Where an employee has an irregular or changing work pattern over the entire 12-month period, either because of moving between full-time and part-time work or because of variable work patterns, the principle of four weeks’ annual holidays continues to apply. The method currently used in most payroll systems is to express the accruing entitlement in hours, with a holiday entitlement of 4/52 of an hour accruing for each hour worked.
Phone 03 211 2589 Fax 03 218 3408
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