Automatically Calculate Public Holidays to Pay on Termination

Legislation

Where an employee has annual holiday entitlement remaining when their employment ends, the unused annual holiday entitlement must be notionally added to their last day of employment. If a Public Holiday falls within this period, and on a day that the employee would otherwise have worked, then the employee must also be paid for this day.

Accrual is not included so an employee would not be entitled to a Public Holiday after the date of termination if they have not completed a full year of service as they would not have become entitled to any annual leave days.

Datapay can help you by doing this calculation automatically.

Holidays Act - 40 Relationship between annual holidays and public holidays

(1) A public holiday that occurs during an employee’s annual holidays must be treated as a public holiday and not as part of the employee’s annual holidays.

(2) Subsection (3) 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 the annual holidays or has taken only some of them.

(3) The employee is entitled to be paid for a public holiday if the holiday would have—

(a) otherwise been a working day for the employee; and

(b) occurred during the employee’s annual holidays had the employee taken his or her remaining annual holidays entitlement immediately after the date on which the employee’s employment came to an end.

More information can be found here:
http://www.legislation.govt.nz/act/public/2003/0129/latest/DLM237114.html

Enable this Functionality

Navigate to the Company tab > Company Options screen.

The below two options can be found on this page:

Open

Include a Public Holiday in a Termination

Follow the steps to terminate an employee via the Termination Wizard as normal.

Within the Pay Run, go through the process of applying the Termination Payments to the Pay Run as you normally would via the wizard.

Datapay will add the Annual Leave Entitlement Balance to the Termination Date using the Work Pattern to get the Projected Entitlement Date. If a Public Holiday falls within that period of entitlement, the Projected Entitlement will be pushed out an extra day.

Any Public Holidays that fall within that time will appear as a new column, and the total Public Holiday Hours and Public Holiday Days will be calculated.

If there are no Public Holidays within that time for any of the employees being terminated, you will not see columns for individual Public Holidays.

Open

Upon clicking Finish, a Public Holiday Termination Payment component will be added to the employee pay packets.