Pay as you go – Holiday Pay

I know a number of companies who like to pay Holiday pay at 8% as they go for as many staff as possible.  One company has just been made, by the Courts, to pay $15,000 to just one employee for following this practice where employment went over a 12 month period and had clearly become more regular. 

The law says you may only pay the 8% as you go if the employment pattern is clearly casual or if fixed term (with good reason) for a period of less than 12 months.  And note that if a fixed term contract is renewed so that in total it becomes longer than 12 months you would become liable to provide paid leave after the 12 months, regardless of whether or not you have paid the 8%.  So if there is any danger of a fixed term extending beyond 12 months - accumulate leave.

This may be a good time to check if you have people on the right contracts.

Need help managing staff?

Mike has a wealth of experience advising on every aspect of the employer-employee relationship. I can give you per-phone guidance or work along side you to make things happen.

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