New Zealand Legislation: Acts

24 Calculation of annual holiday pay if employment ends and entitlement to holidays has arisen

• (1) Subsection (2) applies if—

  • (a) the employment of an employee comes to an end; and

  • (b) the employee is entitled to annual holidays; and

  • (c) the employee has not taken annual holidays or has taken only some of them.

  (2) An employer must pay the employee for the portion of the annual holidays entitlement not taken at a rate that is based on the greater of—

  • (a) the employee’s ordinary weekly pay as at the date of the end of the employee’s employment; or

  • (b) the employee’s average weekly earnings during the 12 months immediately before the end of the last pay period before the end of the employee’s employment.