Cashing Up Holidays – Holidays Act 2003

The Holidays Act 2003 was amended to provide that for holidays accrued after 1 April 2011 (ie generally the first anniversary of commencement of employment after that date) an employer may pay an employee up to one week’s holiday entitlement in a year provided:

• The Employee must request – the employer cannot force it upon the employee or vice versa
• In writing – the request must be in writing
• Employer to consider – the employer cannot be compelled to agree but must in good faith consider and advise the employee of the Employer’s decision within a reasonable time
• Payment as soon as possible – the next pay day would be appropriate
• Not a condition of employment – nor something to be raised in salary negotiations
• Complications – issues with superannuation payments, tax and parental leave situations need to be considered

Transferring Public Holidays

The employer and employee can agree to transfer a public holiday:

• Public holiday must be a working day – the public holiday must otherwise be a working day for the employee, likewise the day to which the holiday is transferred must also be a normal working day for the employee
• Purpose of transfer – purpose cannot be to avoid paying time and a half or providing an alternate holiday for working on the public holiday
• New Day – to be treated like a public holiday and usual rules apply
• Split shifts – where an employee works from 8 pm to 5 am can agree that the public holiday is shifted to just one shift but over two days (so begin the Public Holiday at 8 pm the day before and end it at 8 pm on the day of or begin at 5 am on the day and end it at 5 am the day after)