Be aware, there have been at least 3 articles in the paper in June alone reporting on the reasons and penalties being imposed by the ERA to companies for paying holiday pay at incorrect rates, underpaying employees or for not having current Employment Agreements for their employees.

Any penalty has to be paid to the ERA, as well as any underpayment paid to the employee.

If you are investigated, and it only takes one employee to go to the ERA for this to happen, the ERA will check the pay history of all your employees.

 

What can you do?

  • Make sure you have current Employment Agreements for all your employees and update the agreements if the employment relationship or the pay rate/structure changes.
  • Check you are paying Holiday Pay correctly!
  • Permanent employees must be paid the higher of their ordinary weekly pay and average weekly pay, including regular payments such as overtime or commission.

    Casual or fixed term employees can be paid their holiday on a "pay as you go" basis.

  • All other leave such as sick leave or public holidays, for example, are calculated differently.
  • Keep complete records of your employees hours and days of work.

See the links below:

PDF]Leave and holidays: A guide to employees ... - Employment.govt.nz

www.employment.govt.nz/leave-and-holidays 

www.employment.govt.nz/leave-and-holidays/calculating-payments-for-leave-and-holidays/calculating-annual-holiday-payments/

www.employment.govt.nz/hours-and-wages/keeping-accurate-records/

or feel free to call Jill on ph 03 374 9393 for advice.

 

We prepare some of our clients payrolls and this takes away all the concern and ensures accurate and correct wages every pay. Please contact Louise or Jill to see if they may be of use to you for a no obligation quote or chat (it'll be cheaper than you think)

 

Warmest Regards,
Louise Neville
Director, Chartered Accountant