HOLIDAYS ACT - 4 WEEKS ANNUAL LEAVE
You may recall our newsletter issued in early 2004 where you were advised of the amendments to the Holidays Act including the increase in the minimum number of week’s annual leave to 4 weeks from 1 April 2007.
Employees who are due to receive their next annual leave entitlement from any date after 1 April 2007 shall be required to receive 4 weeks entitlement. This means employers will have to commence accruing for leave at 8% on their financial books as from each employee’s next entitlement date after 1 April this year.
e.g.
- An employee receives their next annual leave entitlement on 4 April 2006 and will receive 3 weeks (15 days leave). From 5 April 2006 onwards, this employee will accrue annual leave on the basis of 4 weeks (8%) so that when they receive their next entitlement on 5 April 2007 they will have earned the full 4 weeks leave.
- An employee receives their next annual leave entitlement on 10 January 2007 and will receive 3 weeks (15 days leave). From 11 January 2007 onwards, this employee will accrue annual leave on the basis of 4 weeks (8%) so that when they receive their next entitlement on 10 January 2008 they will have earned the full 4 weeks leave.
