This article will take you through the annual leave process for different employees. Using an example scenario, you will be able to explore each step - from leave settings, adding leave to a timesheet, to payslips and leave liability.
Updated: May 2023
Employees are entitled to 'annual leave' or '8% holiday pay' depending on their employment agreement. Employers are obligated to pay employees the correct amount for annual leave taken, accrued, or allocated - at the correct time.
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If you are not 100% sure of your employee's employment type, we recommend that you contact Employment New Zealand on 0800 20 90 20, or give our friendly customer success team a call on 04 488 7531 so they can help guide you through this.
Let's explore employee annual leave and 8% holiday pay.
The button you select in our system will display in a darker colour.
This will help you to identify the settings chosen for an employee.
If you have a regular closedown period and you are setting up a new permanent employee, please follow the instructions in this help article.
To explore specific areas further, here are some useful links:
- To find out more about the Leave Tab of the Employee Profile, click here.
- For a comprehensive walkthrough on interpreting the Leave Liability Table, click here.
- To find out how to set up a contractor in the Thankyou Payroll system, click here.
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Did you know we have an article explaining the different aspects of annual leave for each employment type? We also have a video explaining how annual leave works. Have a look at it here.