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What You Need to Do Before You Go On Holiday

Holiday pay has been in the news recently, and we know the Labour Inspectors from the Ministry of Business, Innovation and Employment will be checking that employers have been recording and paying entitlements correctly.


Imagine this. You're sipping a wine under the hot Tuscan sun, or taking the family on a much deserved vacation to Fiji...when your phone buzzes frantically. It's Cindy, the new manager you hired before you left, having a query about the calculated holiday pay after she talked to her friend at a local hair salon. Your relaxing holiday has just become a stressful situation away from home.

Be sure you don't have to deal with any interruptions about holiday pay while you're away. Here's how to make sure you won't:

1. There are two ways of calculating holiday pay
It can be based on ordinary weekly pay at the beginning of the holiday or average weekly earnings over the previous 12 months. The correct amount of holiday pay is taken from whichever figure is the greater.

2. Don't forget your irregular working staff
Where employees are permanently employed on a constant work pattern, working out their entitlement is easy. However, if you have employees working irregular hours, it can be tricky to ensure their entitlements are correct. It is vital to make sure your systems are set up to record all relevant information and that your payroll system uses correct formulas and definitions.

If you need help to enjoy that much deserved break, stress free, give us a quick call.