alternative holidays (days in lieu) for employees who work on public holidays

Our Holidays Online Tool (http://www.ers.govt.nz/holidays-online-tool/default.aspx) makes it easy to work out what pay and leave an employee is entitled to on public holidays. You can also use it to work out sick and bereavement leave entitlements. Make sure you have payroll information or a payslip handy when you use the tool.

If an employee is required to work on a public holiday, and it would otherwise be a working day for the employee they are entitled to a whole day's alternative holiday at a later stage.

Unlike the previous legislation, the entitlement to an alternative holiday applies consistently to all public holidays including ANZAC Day and Waitangi Day.

This provision includes employees working shifts and some employees on call. Both types of employees get a full day off later, even if they only work for a small part of the public holiday.

Where an alternative holiday does not apply

Where an employee:

• works on a public holiday that is not otherwise a working day
• is on call on a public holiday but is not required to restrict their activities
• is only employed to work on public holidays
• is scheduled to work on a public holiday but is unable to work because of sickness or a bereavement

there is no entitlement to an alternative holiday.

Payment for alternative holidays

The alternative holiday can be taken at any time mutually agreeable to the employer and employee, and is paid at the employee's relevant daily pay for the day taken off.

Fourteen days notice must be given when an employee is taking an alternative holiday.

If the employer and employee cannot agree, the alternative holiday may be taken at a time determined by the employee, having regard to the employer's view of what is convenient.

If the alternative holiday is not taken within 12 months of it accruing, the employer can direct the employee to take the alternative holiday. Alternatively at that time the employee may ask the employer to make a payment instead of having the holiday off. If the employer agrees to make a payment the level of payment is a matter of agreement between the employer and employee.

If any alternative holidays are outstanding at the time of resignation or termination, these are paid out at the rate of pay for the employee's last day of work, i.e. their relevant daily pay.

Transitional arrangements for current “days in lieu”