Setting Annual Holidays for a Permanent employees
Permanent Employee (full time or part time)
These are the most common types of employees. Permanent employees have the full set of employment rights and responsibilities. They are entitled to four weeks of annual holidays (annual leave) after continuous employment for 12 months.
Employees have to meet certain criteria to qualify for some employment entitlements, such as parental leave, parental leave payments, annual holidays, sick leave and bereavement leave. There may be small differences between full-time or part-time employees because of their work patterns. Please refer to Employment New Zealand for further clarification on these.
When you are ready to set up your permanent employee's Annual Holiday settings, proceed to the employee's profile page and select the 'Leave' tab.
1. Select the Method
2. Length of a Standard Week
The default "set custom rate" will use hours in a typical week divided by days in a typical week to determine typical hours in a day i.e. 40 divided by 5 = 8 hours. Whenever 8 hours is recorded in a timesheet for annual/sick leave, 1 day will be deducted from the employee's leave balance. This is good to use for variable hours over the week so that an average can be calculated for a day to be used as annual leave.
If the employee works set varied hours on different days, determined by their standard pay settings, choose "same as default standard week". For example, an employee's default standard hours are 8 hours Monday through Thursday, but 5 hours on a Friday. Using the same as default standard week settings means that a day of annual leave taken on a Monday will be 8 hours, but a Friday will be 5.
3. Days in a Typical Week
4. Hours in a Typical Week
5. Leave Anniversary
6. Set an Annual Leave Balance in Days
e.g. Employee Jemima has worked 5d/wk, for 2.5 years before you started with Thankyou Payroll. In that time she has taken 6 weeks of Annual Holidays:
2 years @ 4 weeks/year = 8 weeks (40 days). Subtract 6 weeks (30 days) and the remainder is 2 weeks (10 days). Set her day balance to: 10.
7. Date of the most recent addition of Leave
8. Alternative Leave (lieu days)
Leave management tab in employee profile (illustration)