The Christmas and holiday season is almost upon us again, and we want to make sure you are well prepared on how to manage your payroll during the closedown period.

If you want to create pay period in Advance before you leave for holiday:
https://support.crystalpayroll.co.nz/pp-payinadvance.html

Your employee has asked for extra leave?
Check their entitlements and Enter the Future Leave they have requested.

If you want to enter future leave period in one go:
https://support.crystalpayroll.co.nz/pp-managaingfutureleave.html

How to manage public holiday:
https://support.crystalpayroll.co.nz/fq-publichols.html

If you are planning on giving employees annual bonus:
https://support.crystalpayroll.co.nz/pp-extrapay.html

Here are some rules around Leave during an annual closedown:

If you have an annual closedown, eg the office or workshop is closed over Christmas and no one works, your employees have to take time off even if they don’t have any annual leave.

You have to give 14 days’ notice of the closedown. Employees must:

    • take annual leave over the closedown, or
    • take unpaid leave if they don’t have any leave available.
    • If the closedown period includes any public holidays, you need to pay your staff for them if they fall on days they’d usually work.

Less than a year employed?

Here’s what you should do for these new employees:

  1. Pay them 8% of their gross salary earned up to the shutdown start date, less any annual leave already taken.
  2. Change the date they become entitled to annual leave to one year on from the start of the shutdown.
  3. Let them take paid annual leave in advance (you both have to agree to this).
  4. Don’t forget to allow for paid public holidays if these fall on a day they usually work.

Over a year employed?

If an employee is entitled to annual holidays (even if they currently have a zero annual holidays balance), they must stop work (as long as they get 14 days’ notice) and take as much of their annual holidays balance as is needed to cover the closedown period. Payment for these annual holidays is calculated in the usual way that payment for annual holidays is calculated.
If the employee doesn’t have a high enough annual holidays entitlement balance to cover the whole closedown period, then:

  1. in addition to taking all of the annual holidays entitlement they currently do have, they can also take some annual holidays in advance (if the employer agrees), and/or
  2. they may have to take some leave without pay (or another form of leave as agreed with their employer).

Read more about annual closedown here:
https://www.employment.govt.nz/leave-and-holidays/annual-holidays/annual-closedowns/

Download the Closedown flow chart here:
https://www.employment.govt.nz/assets/Uploads/tools-and-resources/flowcharts/041c775957/closedowns-guidance-flowchart.pdf

Leave a Reply

Your email address will not be published. Required fields are marked *