Understanding Annual Leave Settings based on Employee Agreement Type

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.  

Info - Blue Block (1)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.

Pro Tip - Blue BlockThe button you select in our system will display in a darker colour.

This will help you to identify the settings chosen for an employee.


Info - Blue Block (1)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:

Did You Know - Green Block (1)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.