Workers get option to cash in holidays

BY GRAHAME ARMSTRONG
Last updated 05:00 20/12/2009

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Workers be allowed to swap one week of their holidays for cash from next year.

The government will introduce legislation early in 2010, despite opposition from unions who see it as a move to rewind the Labour government's law change two years ago, which increased the minimum annual leave entitlement for fulltime workers from three to four weeks.

The government will also legislate to standardise the rate at which leave is calculated. There will be a single rate of pay for all leave whether annual, sick, bereavement or public.

But Labour Minister Kate Wilkinson insists that the amendments to the Holidays Act 2003 will contain plenty of safeguards to ensure that workers are not pressured into giving up their holidays.

She told the Sunday Star-Times it was important that workers took time off work and there would be no further move to allow more than one week to be cashed in.

"People can take four weeks if they want four weeks. This is about choice for that one week of the four weeks.

"Holidays are important, rest is important and family time is important and we recognise that. We think one week is about the right balance."

Wilkinson said that as a safeguard, cashing in of leave could not be negotiated at job interviews unless the worker initiated the discussion. Those workers on contracts who get five weeks or more annual leave could cash in only one week a year.

Wilkinson said an overhaul of the act would also give workers and bosses the option – if both parties agree – to take a public holiday on an alternative day.

The Holidays Act review, which began in June, was conducted by a panel chaired by barrister and solicitor Peter Kiely and included business and union representatives. The panel handed its final report to Wilkinson last week. Many of the changes were part of the National Party's election platform.

Wilkinson said the only workers who would be worse off under the changes were those who engaged in "gaming" the system; for example, by manipulating their work hours to maximise their pay while on leave.

Under current law, holiday payments factor in penal rates in the four weeks before the holiday. An employee could exploit that by working considerable overtime before going on leave.

The number of public holidays would remain at 11 despite a push to make Easter Sunday New Zealand's 12th public holiday. "We don't see the need to increase the number of public holidays," Wilkinson said. "There is a misconception that Easter Sunday is a public holiday – it is not a public holiday. For those businesses who are claiming a surcharge, thinking it is a public holiday, the public need to be aware that it is not."

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Wilkinson said the review was needed because the current system was so complex and confusing that even the courts had trouble determining disputes between employers and employees over rates of pay for leave.

"We are not reducing entitlements. We think the new formula for relevant daily pay will be easier to calculate. We also think it will be fairer to employees and employers and prevent the `gaming' of relevant daily pay calculations."

Helen Kelly, president of the New Zealand Council of Trade Unions and a member of the review panel, was worried the government would allow bosses to transfer days in lieu and public holidays to avoid paying double time.

Although she was happy with the proposals as they stood, she was concerned that the final legislation could go further than the report, leaving workers worse off.

"There should be a condition [in the legislation] that the reason for transferring is not to avoid paying time-and-a-half."

Some workers spoken to by the Star-Times were pleased to hear of the law change, saying they would be keen to cash in their leave. Others though, would not. "Hell no, I don't need the money...I would rather take the break from work," said one.

Among the 241 submissions was a call for March 18 to become a public holiday. Wilkinson said she was "amused" at the suggestion but was not interested in "legislating for behaviour that condones hangovers or the over-indulgence of alcohol". March 17 is St Patrick's Day.

THE CHANGES

Allow workers to cash in one of four weeks' leave

Allow workers to transfer public holidays (taking a public holiday on an alternative day to the day it falls)

Maintain current leave and holiday entitlements for casual employees

Maintaining 11 public holidays a year

Standard leave rate (single rate of pay for all leave whether annual, sick, bereavement or public)

- © Fairfax NZ News

17 comments
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Col   #17   09:46 am Jan 12 2010

#15 That really depends on where and what you do as to $15 being a minimum wage to live on. A lot of employers actually most in the area I live will try and get out of paying holiday pay even when a contract of employment ends. Most the work in the area is casual! They get away with it because of the limited employment and wagging tongues of a rural enviroment. Of the 4 employers I work for casually only one has included holiday pay into the hourly rate as they should do for such a contract all the employers are weather dependant so are casual work only. Most the employers wonder why they can not get good staff that last it is because of the travel distance and poor minimum wage they pay. All I hear is employers whining how hard done by they are now and employees complaining of unfair treatment! Only reason legislation has to be put in place is bacuse employers are exploiting more than they were 10 years ago and employees are suffering from those increased costs in lower wages. I only have to look at a couple employers in the area to realise that wages have not increased in line with basic costs for the area. The blame can also be put on local goverment for those increased costs! Its only a 10% increase to your rates, electricity etc yet 10% on $1000 is more than %10 on $500 the wage gap widens.

anon   #16   10:40 pm Dec 20 2009

@ChrisH #1 08:44 am Dec 20 2009 "If Easter Sunday is not a Public Holiday, why do those nice people from the Labour Department fine business's for opening on that day?"

Because the Holidays Act deals with leave that employees have, and the Shop Trading Hours Act Repeal Act is the one which says shops can't be open on Easter Sunday. Both pieces of legislation are administered by the Department of Labour. Our current Holidays Act is based on 1981 and 1944 legislation - Easter Sunday didn't need to be a public holiday because everything was shut on Sundays then anyway.

moot   #15   09:05 pm Dec 20 2009

#8 $15 an hour would probably be the minimum to live properly on a 40 hour work week.

peewee   #14   08:05 pm Dec 20 2009

yet another workers condition lost . If Nzers were paid a decent wage they wouldnt need to cash in there holidays to make ends meet . company profits have doubled in the last 5 years . What have wages done .? the economy needs complete restructure & reform to restore some balance . High cost living in a low wage economy does not equate cashing in your holidays to try and correct the balance is not the answer . Its pushing workers further down the ladder . The adjustment has got to come from the top end not the bottom . The huge exodous of workers leaving NZ wont stop until something is done about economy its lopsided .

Julia   #13   03:44 pm Dec 20 2009

Some people are so funny! Meeoooww! Of course I know that people work weekends too... It should be fair to everyone... Everyone should get the 11 holidays! Doh! And surely employers know that keeping staff happy and making them feel valued is a way to get better performances from their employees? Ergo - It's better for the economy!

Bernard Robertson   #12   03:38 pm Dec 20 2009

Statutory holiday provision really is an anachronism. Who are any of the writers above to tell people how much holiday they must have? If you have children then holidays are probably important to you, if you are going on OE next year, then you probably want to work every hour you can and save up.

There is absolutely nothing to stop someone doing a casual job during their annual leave, its just likely to be at a lower wage than their usual job, not to mention cause a load of hassle finding and getting the job.

What some writers above dont seem to understand is that no one pays you to take time off (except perhaps the government which extorts its money on pain of imprisonment). Businesses only get income by providing goods and services to customers and only pay employees to do that. Holiday pay, sick pay, personal grievances etc etc are all just fictions. An employer will calculate its labour budget and then deduct the cost of all these things before settling wages and salaries.

My favourite provision is the one about casual workers receiving holiday pay when they leave the job. In other words they have been making a forced interest free loan to the employer all the time they have been employed. Who would negotiate to do that?

Alison   #11   03:27 pm Dec 20 2009

People who are athiests shouldn't have to take religious holidays. We keep saying we are a secular country, yet everything stops for Christmas and Easter. If people don't believe in it, why can't they work through? It would also take the edge off the avaricious retailers, with any luck.

exeman   #10   03:22 pm Dec 20 2009

It not good news for workers under the proposals as may seem let up from superfluous employers who make excuses for no reason and may led to got off lightly that is big concern.

guy   #9   02:45 pm Dec 20 2009

big business must have been getting very annoyed that they were getting no returns for all the money they pumped into getting national elected finally they are getting what they paid for.damn unions looking after working new zealanders,how dare they.

Joel   #8   02:25 pm Dec 20 2009

#7 Jimmy 123 I totally agree with you! What the main issue people have is this in ability to understand that New Zealand needs to become for business friendly and that half the unions are terrorist groups. They are terrorist groups because they seem hell bent on destroying New Zealand's economy. Raising the minimum wage to $15 an hour is the worst idea that has ever been put forward in the past year, this wage increase would devalue the kiwi dollar and possibly make our currency like that of India's where 35 INR can buy 1 NZD. So when will national be putting a flat tax in?


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