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Annual Leave and COVID 19 Wage Subsidies

When they received the COVID – 19 subsidy, many employers also made changes to their employee’s hours of work.  Some reduced the hours from full time to part-time.  In some instances, this new arrangement became permanent.

It is important to consider how these changes affect annual leave entitlements and to make sure that you are compliant with the Holidays Act.

What your obligations are

You are free to choose the work arrangements that best suit your business objectives.  However, these must be compliant with the law and agreed by the employee.

Whatever you decide to do, complicated pay and/or variable or unpredictable work arrangements are likely to increase the time and cost that you or your payroll staff spend complying with the Holidays Act.

If you have made a change to an employees’ days or hours of work, this will have changed the annual leave entitlement.  Not the 4 weeks per year.

But the amount of annual leave that they must be paid will have changed.

It can become a complicated exercise to work out this new entitlement. 

If you are uncertain about your employee’s annual leave entitlement, we recommend you consult a reputable payroll provider, MBIE or get in touch with us to help you.

Please contact Steve Newby on 0212621035; steve@newbyhr.com, and find out how we can help you.

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