The new Act, which came into force on 1 April 2004, was heralded as clarifying and simplifying the old Holidays Act. It has placed additional requirements on employers and added additional cost to an employer.
The Act, in the first instance, requires that employers must inform their employees at the time that an employee enters in an employment agreement about their entitlements under this Act. The way to do this is, obviously, to clearly set out the entitlements in full in the Employment Agreement.
Public Holiday entitlements of a day in lieu have been replaced with the Alternative Holiday. The emphasis is that employees are able to take an alternative holiday, when they are required to work on a Public Holiday, which they would otherwise have been required to work on. Employees become eligible for an alternative holiday if they are required to work on a Public Holiday and that day would normally have been a working day for the employee. They are also entitled to be paid at time and half for hours worked.
When an employer brings another person in to work on a Public Holiday, and the person does not normally work on that day, then they are not eligible for an alternative day. They are, however, entitled to be paid at time and half.
Employees who would normally work on the day of a holiday and do not work are entitled to be paid for the day at their relevant daily pay.
The alternative day, and when it is to be taken, must be by agreement. When the parties cannot agree, the employee is entitled to take into account the employer's view as to when the holiday should be taken and then give 14 days notice of the employee's intention to take the holiday.
The employer can only direct the employee to take the alternative holiday after 12 months. If the 12 months passes, and the holiday has not been taken, then the employee can request that, rather than take the day off, they be paid out the day at the relevant days pay.
The employer is now required to keep a detailed Holliday and Leave record. The Act requires that 17 different particulars are recorded.
Further, Sick Leave is able to be accumulated to 20 days.
Bereavement Leave is now separate from Sick Leave.
Non-compliance of these new provisions can make an employer liable for a penalty of up to $10,000.
If you have any questions on this, or any other aspects of the changes to the Holidays Act, please contact us.
Clearly all employment agreements, both collective and individual, will need to be updated to reflect the changes. Also, wage and time records will need to be amended. We are able to assist in these areas and anybody who wishes to discuss these matter should contact our office.
