COMMENT
Following a number of queries from clients regarding provisions of the Holidays Act and how they relate to employees termination, I thought there may be others who are unsure of these particular aspects of the Act and have therefore summarised this below.
Termination of employment and payment of Public Holidays
The Holidays Act previously provided for the payment of a proportionate amount (x / 10ths) of a Public Holiday where the Holiday fell within 10 working days of an employee’s termination date.
This provision no longer applies under the current Holidays Act and therefore an employee is no longer automatically entitled to receive any payment for a Public Holiday that falls outside of their actual period of employment.
However, this is subject to the amount of annual leave accrual due to be paid to the terminating employee.
Where an employee has outstanding or accrued holiday pay due to be paid upon termination and where the number of days holiday pay would otherwise carry the employee up to (inclusive of) and or past the Public Holiday; then the employee is entitled to receive payment for that Public Holiday.
For example:
- The employee’s last day is 19 April 2007
- The employee is due 6 days holiday pay
- The 6 days holiday pay would (if taken as leave) carry the employee past Anzac Day (25th April)
- The employee would therefore be entitled to receive their normal full payment for Anzac day in addition to the 6 days accrued holiday pay.
