Holidays Act 2003

If you need more information about this Act, please contact the administering agency: Ministry of Business, Innovation, and Employment

Payment for annual holidays

21 Calculation of annual holiday pay


If an employee takes an annual holiday after the employee’s entitlement to the holiday has arisen, the employer must calculate the employee’s annual holiday pay in accordance with subsection (2).


Annual holiday pay must be—


for the agreed portion of the annual holidays entitlement; and


at a rate that is based on the greater of—


the employee’s ordinary weekly pay as at the beginning of the annual holiday; or


the employee’s average weekly earnings for the 12 months immediately before the end of the last pay period before the annual holiday.

Compare: 1981 No 15 s 16