Unpaid leave and End of Year holiday pay

This describes the impact unpaid leave has on End of Year holiday pay.

Teachers

Unpaid leave other than sick leave

If you have taken unpaid leave of:

  • more than five consecutive days for Primary teachers, or
  • more than five days in total for Secondary and Area teachers.

You may have a holiday pay reduction applied to your pay over the Christmas holiday period. This means part of your holiday pay may be unpaid.

This holiday pay reduction is calculated at 30% of the days unpaid leave taken, less any holiday pay reduction already made during the term 1, 2, or 3 holidays.

For example, Bruce has taken leave without pay from 02/11/16 to 16/12/16, a total of 47 days. Bruce will have a holiday pay reduction of 47 x 0.3 = 14 days, applied at the end of his period of holiday pay.

Sick leave without pay (including ACC leave without pay)

If you have taken sick leave without pay of more than 90 days you may have a holiday pay reduction applied to your pay over the Christmas holiday period. This means part of your holiday pay may be unpaid.

This holiday pay reduction is calculated at 30% of the days unpaid leave taken after the first 90 days, less any holiday pay reduction already made during the term 1, 2 or 3 holidays.

For example, Mary has taken sick leave without pay from 03/08/16 to 27/11/16, a total of 103 days of leave. The first 90 days of sick leave without pay still attracts holiday pay, and Mary was therefore paid salary during the September term holidays. 103 - 90 = 13 days subject to a holiday pay reduction. Mary will have a holiday pay reduction of 13 x 0.3 = 4 days, applied at the end of his period of holiday pay.

Term-time only auto-paid non-teaching employees

If you have taken more than five consecutive days of unpaid leave during the year, you will receive holiday pay calculated at a percentage of earnings, rather than a number of weeks annual leave.

For example, Bruce has an entitlement of five weeks annual leave per year as he has over 10 years' service. Bruce has taken leave without pay from 03/08/16 to 28/08/16. Because this is more than five consecutive days of unpaid leave, Bruce is no longer eligible to receive five weeks of annual leave, and will receive holiday pay based on 10% of his gross earnings instead.

N.B. This currently occurs for all types of unpaid leave. The Novopay payroll does not currently treat sick leave without pay and maternity/parental leave differently to other unpaid leave types. The Ministry is working with Novopay to resolve this.