Most employers not complying with aspects of Holidays Act

A survey of employers on their Holidays Act practices has shown the current law is so complicated and confusing that most employers appear to find aspects of it unworkable and are not complying with all of it.

“The survey by the Employers and Manufacturers Associations (Northern) also showed some practices are entrenched to the extent there is little choice but to legalise them,” said David Lowe, Employment Services Manager for EMA.

“Confusion is particularly widespread over holiday entitlements for casual employees; only 18 per cent of employers felt they understood when a casual employee was entitled to a paid day off when they worked on a public holiday.

“The survey showed only 19 per cent of workplaces offer their casual employees sick leave and bereavement leave despite the law providing a complex formula that gives some casual employees these entitlements.

“The 728 employers responding to the survey pulled no punches over the current Holidays Act review. An exceptionally high completion rate of 65 per cent confirmed a keen interest in it.

“The Relevant Daily Pay formula for calculating sick pay is the most problematic with employers clear they want it replaced.

“Under the present formula people can end up getting paid more for being sick than for coming to work.

“This has meant businesses can have their highest absenteeism rate during their busiest times.

“The present Holidays law also states that an employee who is sick on a public holiday is not to be treated as being sick. It makes no sense.

“83 per cent of employers disagreed with the current law that provides employees on parental leave and long-term accident compensation with holidays and sick leave while they are absent from work.

“The present law lets people take a holiday to take a break from the job while they’re not even doing it.

“Most employers support shifting to a single payment formula for all types of leave.”

Comments: David Lowe tel 09 367 0921 (b)

0274 796 807

(NB. Submissions on the Holidays Act review have now closed. EMA’s submission is available in full at www.ema.co.nz )