Hi there.

I was made redundant 2 weeks ago and was paid…

Question

Hi there.

I was made redundant 2 weeks ago and was paid out one months notice plus holiday
pay. I have worked for the company almost 12 years. in July last year I broke my
wrist and had a period of time off on ACC spread over approx 3 months. I had 8
annual leave days over the past calculated year from April 1st 2012 to March
31st 2013. Which would mean I would be entitles to another 11/12 days or 8% of
my earnings to date

It is my understanding that my accrued 'holiday pay' for this period should
include the hours covered by ACC? I checked this on the labour department
website but just wanted confirmation if I am correct? Some of the time during my
rehab, I was actually working, but covered by ACC. I have only received holiday
pay entitlement on the hours/earnings covered by my employer. I have worked out
the numbers and think I have been short changed around $1000.00 nett, but wanted
to find out if I am correct in my assumption, before going back to my employer.
Their numbers don't add up but they assure me that their payroll system
calculatiuons are correct.

Thank you for your time! C.

Chris The Lawyer · Accepted Answer

christhelawyer : HiWelcome to JustAnswer. My first response will follow shortly.
Please feel free to follow up if anything is not clear
christhelawyer : This can depend on what the employment agreement says, but
unless there is something specific payments made by ACC are not included.
christhelawyer : You can find this in section 14 of the Holidays Act, so sadly
the employer may be right.
christhelawyer : 14 (b) says (b)excludes any payments that the employer is not
bound, by the terms of the employee’s employment agreement, to pay the employee,
for example—(i)any discretionary payments:(ii)any weekly compensation payable
under the Injury Prevention, Rehabilitation, and Compensation Act 2001 or former
Act:
christhelawyer : The Act reference is the former name of the current Accident
Compensation Act
Customer:

Thanks for your response, but I am a little confused. I can't seem to find the
information online that you refer to above? Here is a link to the information I
found on the 'Ministry of Business, Inovation and Employment' website, to which
I am referring, that states if an employee has been off on ACC it doesn't affect
their annual leave entitlements. That's what I was trying to clarify:
http://www.dol.govt.nz/workplace/knowledgebase/item/1351

christhelawyer : You still get the leave but the holiday pay will not be as
much.
christhelawyer : The difference is that you are getting money instead of the
leave and there is a specific calculation used under the act
Customer:

Thanks Chris

christhelawyer : Sorry it isn't better news
Customer:

Sorry but does that mean it is calculated on what would be one week short of a
full year (April 1st 2012 - March 18th 2013 when I am effectively paid up until,
with the one months notice). In terms of 'days' that would be close to 20 (maybe
19?) that would normally be accrued, less the days already taken. In my case if
they are working it as 8% of total earnings over that period, is the
time/hours/pay covered by ACC not taken into account. Is the 8% taken purely on
the gross income received from my employer? That's where I am getting a little
confused. If I hadn't been made redundant and was still working there, would I
have been entitled to the 4 weeks holidays? If so, taking into account the 8
days i have already taken and maybe 1 day less as it's not a full year, then
wouldn't I be entitled to that amount? Sorry if I seem to be talking around in
circles. I just want to be fully clear on it. Thanks for your time!

christhelawyer : I think there is some unfairness about how this works. If you
had not been redundant you would have got your standard holidays. But the ACC
payments are not taken into account in the calculation of the pay, which is
based on what you got rather than your full years salary. Your employer has
exploited this to their advantage.
Customer:

Ah... I see! I wondered if that might be the case. It has been a very
disheartening experience, especially after being a loyal employee for 12 years.
A restructuring and downsizing of the business, which has been done it quite a
heartless way and as you say, they have exploited the situation to their
advantage on a number of levels. I must just put this all behind me and move on.
Thanks once again for taking the time to clarify things for me. Have a nice day!
Cheers! C

christhelawyer : You can contact the Labour Inspectors and get them to check, as
they have a statutory function to check these payments. Contact Centre on 0800
20 90 20 during business hours. Business hours are 8.30am - 5.00pm Monday to
Friday excluding public holidays
Customer:

Excellent! Thanks Chris! :o)

christhelawyer : noholidays I problem
christhelawyer : Sorry, I pad auto spelling, I meant , no problem

Hi there. I was made redundant 2 weeks ago and was paid…

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