Leave is a top topic cross board of all businesses. What is your entitlement? Do you know or do you understand how does your leave have been calculated? I am here to interpreting some concepts of leaves.
In New Zealand, we have all sorts of leave available, such as annual leave, sick leave, bereavement leave, long service leave, lieu leave, maternity leave etc.
I would like to talk about annual leave. Every employee is eligible to get 4 weeks paid annual leaves after end of each completed 12 months of continues employment. It doesn’t include contractor self-employee.
Contractors are not employed by employer, who are supplied by external labour or professional or other kind of supply. Therefore, company don’t pay annual leaves to contractor. However, have you found that contractors are getting much high pay rate either hourly or proportion of annual salary.
Self-employee is an unpredictable job. No paid leaves no holiday pay, no work no pay. Govt will not pay you a dam dollar, if you are out of works on leaves. Anyway, there are plenty of self-employed people, benefit is obvious. There are freedoms on work, flexible on time, as well as tax instrument benefits. Because of NZ tax system is on voluntary filing basis. How much does self-employee earn? No one real knows, expect self. There is huge wiggle room for people to do creativities.
Back to my topic that 4 week paid annual leaves. It clear stated no less than 4 weeks’ paid annual holidays. Not 20 days, DO NOT ASSUME 5 days x 4 weeks = 20 days. You may be wrong planned your holiday, if you work 12 hours shift 3 days per week, which annual holiday would be only 12 hours each day, 12 days in total. However, if employee worked 12 hours shift 3 days per week for first 26 weeks, worked 8 hours shift 5 days per week for second 26 weeks. This is employee available annual leaves:
12 hours x 3 days x 2 weeks = 72 hours (first 2 weeks)
8 hours x 5 days x 2 weeks= 80 hours (second 2 weeks)
Overall, the employee receives 152 hours annual equivalent 4 weeks. This example assumed employee receives wage on flat rate, changed only work pattern during year.
People often so over time try to gain more money at high rate. Then, the rate will fluctuate that is no less than signed contract rate. Annual holiday pay must be at a rate that is based on the greater of—
(i) employee’s ordinary weekly pay as at the beginning of the annual holiday, this shows on contract if employee paid on hourly rate; or
(ii) employee’s average weekly earnings for the 12 months immediately before the end of the last pay period before the annual holiday. This must calculate based last 52 weeks total taxable earning divide by total scheduled working hours. The example follows annual leave rate is $24.97 per hour. Meanwhile, I assume Dave worked as full time 35 hours weekly, Dave takes 2 week annual leave during Xmas, his two week leaves payment are $24.97 x 35 hours x 2 weeks = $1748.04. Now, you see his 2 weeks annual leaves paid only 70 hours at $24.97 per hour.
| Surname | First Name | Standard Hrs | Standard Rate | Over time | Over time Rate 1.3 | Taxable allowance | Income | Week |
| Hamilton | Dave |
35 |
$20.00 |
10 |
$26.00 |
$12.00 |
$ 972.00 |
1 |
| Hamilton | Dave |
35 |
$20.00 |
5 |
$26.00 |
$0.00 |
$ 830.00 |
2 |
| Hamilton | Dave |
35 |
$20.00 |
2 |
$26.00 |
$12.00 |
$ 764.00 |
3 |
| Hamilton | Dave |
35 |
$20.00 |
15 |
$26.00 |
$0.00 |
$ 1,090.00 |
4 |
| Hamilton | Dave |
35 |
$20.00 |
12 |
$26.00 |
$12.00 |
$ 1,024.00 |
5 |
| Hamilton | Dave |
35 |
$20.00 |
11 |
$26.00 |
$0.00 |
$ 986.00 |
6 |
| Hamilton | Dave |
35 |
$20.00 |
10 |
$26.00 |
$0.00 |
$ 960.00 |
7 |
| Hamilton | Dave |
35 |
$20.00 |
5 |
$26.00 |
$0.00 |
$ 830.00 |
8 |
| Hamilton | Dave |
35 |
$20.00 |
0 |
$26.00 |
$0.00 |
$ 700.00 |
9 |
| Hamilton | Dave |
35 |
$20.00 |
15 |
$26.00 |
$0.00 |
$ 1,090.00 |
10 |
| Hamilton | Dave |
35 |
$20.00 |
0 |
$26.00 |
$0.00 |
$ 700.00 |
11 |
| Hamilton | Dave |
35 |
$20.00 |
10 |
$26.00 |
$10.00 |
$ 970.00 |
12 |
| Hamilton | Dave |
35 |
$20.00 |
5 |
$26.00 |
$0.00 |
$ 830.00 |
13 |
| Hamilton | Dave |
35 |
$20.00 |
6 |
$26.00 |
$0.00 |
$ 856.00 |
14 |
| Hamilton | Dave |
35 |
$20.00 |
8 |
$26.00 |
$15.00 |
$ 923.00 |
15 |
| Hamilton | Dave |
35 |
$20.00 |
9 |
$26.00 |
$0.00 |
$ 934.00 |
16 |
| Hamilton | Dave |
35 |
$20.00 |
12 |
$26.00 |
$0.00 |
$ 1,012.00 |
17 |
| Hamilton | Dave |
35 |
$20.00 |
5 |
$26.00 |
$12.00 |
$ 842.00 |
18 |
| Hamilton | Dave |
35 |
$20.00 |
5 |
$26.00 |
$0.00 |
$ 830.00 |
19 |
| Hamilton | Dave |
35 |
$20.00 |
8 |
$26.00 |
$0.00 |
$ 908.00 |
20 |
| Hamilton | Dave |
35 |
$20.00 |
2 |
$26.00 |
$15.00 |
$ 767.00 |
21 |
| Hamilton | Dave |
35 |
$20.00 |
1 |
$26.00 |
$0.00 |
$ 726.00 |
22 |
| Hamilton | Dave |
35 |
$20.00 |
10 |
$26.00 |
$0.00 |
$ 960.00 |
23 |
| Hamilton | Dave |
35 |
$20.00 |
11 |
$26.00 |
$12.00 |
$ 998.00 |
24 |
| Hamilton | Dave |
35 |
$20.00 |
10 |
$26.00 |
$0.00 |
$ 960.00 |
25 |
| Hamilton | Dave |
35 |
$20.00 |
15 |
$26.00 |
$13.00 |
$ 1,103.00 |
26 |
| Hamilton | Dave |
35 |
$20.00 |
12 |
$26.00 |
$0.00 |
$ 1,012.00 |
27 |
| Hamilton | Dave |
35 |
$20.00 |
12 |
$26.00 |
$0.00 |
$ 1,012.00 |
28 |
| Hamilton | Dave |
35 |
$20.00 |
0 |
$26.00 |
$11.00 |
$ 711.00 |
29 |
| Hamilton | Dave |
35 |
$20.00 |
0 |
$26.00 |
$0.00 |
$ 700.00 |
30 |
| Hamilton | Dave |
35 |
$20.00 |
0 |
$26.00 |
$10.00 |
$ 710.00 |
31 |
| Hamilton | Dave |
35 |
$20.00 |
10 |
$26.00 |
$0.00 |
$ 960.00 |
32 |
| Hamilton | Dave |
35 |
$20.00 |
5 |
$26.00 |
$0.00 |
$ 830.00 |
33 |
| Hamilton | Dave |
35 |
$20.00 |
5 |
$26.00 |
$0.00 |
$ 830.00 |
34 |
| Hamilton | Dave |
35 |
$20.00 |
7 |
$26.00 |
$0.00 |
$ 882.00 |
35 |
| Hamilton | Dave |
35 |
$20.00 |
0 |
$26.00 |
$0.00 |
$ 700.00 |
36 |
| Hamilton | Dave |
35 |
$20.00 |
12 |
$26.00 |
$0.00 |
$ 1,012.00 |
37 |
| Hamilton | Dave |
35 |
$20.00 |
0 |
$26.00 |
$0.00 |
$ 700.00 |
38 |
| Hamilton | Dave |
35 |
$20.00 |
0 |
$26.00 |
$0.00 |
$ 700.00 |
39 |
| Hamilton | Dave |
35 |
$20.00 |
10 |
$26.00 |
$0.00 |
$ 960.00 |
40 |
| Hamilton | Dave |
35 |
$20.00 |
10 |
$26.00 |
$12.00 |
$ 972.00 |
41 |
| Hamilton | Dave |
35 |
$20.00 |
3 |
$26.00 |
$12.00 |
$ 790.00 |
42 |
| Hamilton | Dave |
35 |
$20.00 |
5 |
$26.00 |
$15.00 |
$ 845.00 |
43 |
| Hamilton | Dave |
35 |
$20.00 |
0 |
$26.00 |
$10.00 |
$ 710.00 |
44 |
| Hamilton | Dave |
35 |
$20.00 |
8 |
$26.00 |
$0.00 |
$ 908.00 |
45 |
| Hamilton | Dave |
35 |
$20.00 |
6 |
$26.00 |
$0.00 |
$ 856.00 |
46 |
| Hamilton | Dave |
35 |
$20.00 |
4 |
$26.00 |
$0.00 |
$ 804.00 |
47 |
| Hamilton | Dave |
35 |
$20.00 |
5 |
$26.00 |
$0.00 |
$ 830.00 |
48 |
| Hamilton | Dave |
35 |
$20.00 |
15 |
$26.00 |
$0.00 |
$ 1,090.00 |
49 |
| Hamilton | Dave |
35 |
$20.00 |
5 |
$26.00 |
$0.00 |
$ 830.00 |
50 |
| Hamilton | Dave |
35 |
$20.00 |
0 |
$26.00 |
$0.00 |
$ 700.00 |
51 |
| Hamilton | Dave |
35 |
$20.00 |
5 |
$26.00 |
$0.00 |
$ 830.00 |
52 |
| Total |
1820 |
$ 45,449.00 | ||||||
| Standard rate | $ 20.00 | |||||||
| 52 weeks average | $ 24.97 | |||||||
| annual leave rate | $ 24.97 |