The Holidays Act 2003 states that an annual leave rate should be calculated at the start of the employee’s leave and be used for the entire duration instead of being updated each pay period. This includes leave across pay periods, as long as the leave taken is continuous. Annual leave is defined as continuous if there is no return to work.
This process is now automated in DataPay, with the functionality enabled for all companies in New Zealand environments by default.
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If there are multiple pay packets for an employee in a period, it is strongly advised that all leave requests are applied to the Main pay packet. Failing to do so may prevent continuity from being detected and all leave requests would could be marked as Not Start Continuous.
Payment for continuous annual leave
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