New Zealand Law
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I am just reading this now
Redundancy is generally calculated on the time you have worked. If you are owed holidays, that is reflected in the total time you have been at the workplace, so it will not add another 40 days entitlement to redundancy. It can depend on how the redundancy is calculated under your contract, but it will be based in most contracts on your time with the employer. That time includes the leave entitlement which accumulates with your service, but the leave entitlement does not extend your service with the company.
I did understand what you meant. Annual leave looks forward, in the sense that you accumulate the right to annual leave. So at the point at which you are either made redundant or take the annual leave, the holiday pay is for the 40 days ahead, and is not for the previous period. This means that the holiday pay is not included in your calculation of average weekly earnings. You would otherwise be claiming more than you were actually paid because this would then inflate your 12 month income by an additional 40 days pay.