Employers who calculate holiday pay based on an employee's contracted hours can get caught out if that person does variable hours or earns a commission or other variable pay. The issues centre around the fact that there are two ways to calculate holiday pay - either on the basis of ordinary weekly pay or an employee's average weekly earnings over the past 12 months. But employers who calculate holiday pay based on an employee's contracted hours can get caught out if that person does variable hours or earns a commission or other variable pay. An MBIE spokesman said it was not appropriate to name the employers as the cases were ongoing. Last month Spark called for former staff to come forward and check if they were owed any holiday pay in public advertisements in newspapers around the country.

Source: Otago Daily Times March 04, 2018 21:11 UTC