SmartPayroll’s Online Payroll system doesn’t require a lot of extra attention for statutory holidays. The main issue for employers to consider is whether or not their staff would usually work on Labour Day. For most businesses operating Mon-Fri, the answer to this question is yes as Labour Day falls on Monday 27th October 2014. If this is the case it is then a question of whether employees will take the statutory holiday, or opt to continue work as per usual. Follow the guidelines outlined below to figure out how to pay your staff this labour day. If your employees would usually work on the upcoming public holiday and will be treating the day as such, all you need to record in the online payroll software is “Statutory Holiday Taken”
Where the Employee works on any part of a public holiday the Employee will be paid time and a half for the actual hours worked*. If the Employee works on a public holiday and that day would be the Employee’s normal day of work, (i.e. ‘an otherwise working day’) then in addition to payment for the above at ‘time and a half’, the Employee is entitled to an alternative holiday (which will be paid, when taken, at the Employee’s relevant daily pay for the day off).
If the Employee does not work on a public holiday and the Employee was not due to work that day, (i.e. not an ‘otherwise working day’) then the Employee is not entitled to any payment for that day and is not entitled to an alternative holiday.
An Employer may require an Employee to work on a public holiday if the public holiday falls on a day that would ‘otherwise be a working day’ for that employee and the Employee is required to work on the public holiday under his or her employment agreement.
* at the greater of the following rates for the hours actually worked:
(a) the Employee’s relevant daily pay rate, less any penal rate that is paid for working on a particular day or particular type of day at time and a half; OR
(b) the Employee’s relevant daily pay rate including any penal rate that is paid for working on a particular day or particular type of day.
Still stumped? Take a look at our Public Holidays flowchart
If you’ve got any further questions, don’t hesitate to get in contact. The main thing to remember with public holidays, is to get it done early and ensure you process payroll on days that banks are open.
Following Labour Day, here are the upcoming Public Holidays for New Zealand
Content provided by Employers Assistance