- Post by David Farrar –
Brooke van Velden writes:
“Workplaces that rely on part-time workers are particularly vulnerable to unexpected staffing shortages. To explore this issue further, the exposure draft set for consultation will include a proposed approach to pro-rating sick leave, to better reflect how much an employee works,” says Ms van Velden.
This is just common sense. Someone who works one day a week shouldn’t get the same sick leave entitlement as someone who works five days a week.
For example, the exposure draft will now include a change in how annual leave is provided, moving from an entitlement system to an accrual system.
“Shifting to an accrual system for annual leave entitlements is just common sense. While workers might not notice any change in their entitlements, from a payroll perspective this should make a huge difference. An accrual system should help avoid the complex calculations that regularly stump payroll software and should therefore reduce compliance costs for employers.
An accrual system is exactly the right way to do this. The current law requires calculations so difficult that no payroll system in NZ can actually calculate it correctly.
I presume the accrual system will be something along the lines of you get 8% of your earnings for a fortnight accrued to your annual leave account, and that can be used for future leave. Nice and simple.
This article by David Farrar was first published on Kiwiblog.
Point of Order 