Updates & Articles

The Holidays Act is changing

  • Share

A major overhaul of the Holidays Act 2003 is underway, which is welcome news because this is a notoriously tricky Act for businesses to comply with.

Many businesses have been caught out over the years, including Bunnings, NZ Post and McDonalds. Even the NZ Police, several local councils and MBIE have found themselves with big wage bills to pay after unintentionally underpaying staff for holidays.

The new legislation is designed to make it simpler for businesses to correctly calculate holiday pay, and it looks set to be introduced in early 2022. In the meantime, though, you’ll still need to comply with the existing Act.

Keep accurate and up-to-date records

You don’t want to underpay or overpay your staff members, so it’s important to keep accurate records of when they work. This includes:

  • Records of the hours each person has worked and what they were paid for those hours
  • Annual leave accrued and taken
  • Sick leave and bereavement leave taken
  • Any public holidays worked and what was paid for those hours
  • Keep all your records up to date.

Workers may also be entitled to domestic violence leave or parental leave, and they can apply for unpaid leave.

Tools and guidance

You can use the Holiday Tool from Employment New Zealand to help you work out what to pay someone when they are on leave. You can also read more tips for compliance here.

Or you can give us a call. 

We can help you sort out your payroll and make certain you’re complying with the Holidays Act, even in complex situations with part-time employees.

The Maritime Museum Foundation has enjoyed a significant long term relationship with the team at Lynch & Associates. They continue to provide our board with outstanding professional service and sage advice. I would unreservedly recommend their accounting, audit and advisory services.”

Eric Mahoney, Chairman, Maritime Museum Foundation

Lynch & Associates have been our accountants since 2018. Through that time their friendly and approachable team have guided us and made good, clear recommendations for our theatre company for children. Their support and advice continue to help create a stronger, more sustainable charitable organisation. 

Tim Bray, QSM, Trustee and Artistic Director, The Operating Theatre Trust

It has been a pleasure working with Errol Burn and the team at Lynch and Associates, their insight, intelligence and in-depth knowledge of the social impact sector has allowed the Sir John Kirwan Foundation to flourish and grow.  Fully supporting the Foundation in all of its financial needs, Lynch and Associates have never failed to deliver, always providing calm, thoughtful advice together with encouraging us to consider every aspect, to ensure maximum benefit.

Nikki Flexman, Head of Growth, Sir John Kirwan Foundation

We have used Lynch and Associates services for over 15 years and have always found them to be a very friendly, helpful and professional team. They also really care about us and our business, as they went out of their way to assist us during difficult times. We have also used their professional business services that proved invaluable in helping us to get through a rough patch and refocus our efforts. Their approach to business services was understanding of our situation but well blended with firm encouragement to address issues and make strides towards improvement. We highly recommend them for both their accounting and professional business services.

Darryn Smith, Director, Multicolour Screen Printers Limited

A huge “Thank You” and shout out to the team at Lynch & Associates for all the consulting and accounting services they have done for my wife and I over the past 12 years. The team have work diligently on both trusts and a number of companies for us over this time and long may this continue. It is so great to engage with a professional proactive team that results in no sudden surprises at the end of the tax period. We look forward to the catching up soon and hearing what is new and how else we can move forward faster financially.

John and Shelley Bishop 

We believe in putting people first and sharing our knowledge and experience to help our clients achieve success in business and life. If you think we could be a good fit for your accounting needs, please get in touch.

Contact Us

Phone +64 9 366 6005
Email: admin@laaca.co.nz

Location

B:HIVE, Smales Farm
74 Taharoto Road, Takapuna
Auckland 0622
New Zealand

© Lynch & Associates Chartered Accountants

Website by Designer Digital