Summary of Covid-19 Employee Circumstances, Leave Entitlements and Pay
About the Author:
Paul Wilton (editor)
CA with degrees in commerce, accounting and information technology. Paul worked overseas in the “Big 4” accounting firms and served as a director at Audit New Zealand before setting up his own consultancy. Author of A-Z of New Zealand Business Law, Paul has over 20 years of experience as a business owner and consultant. He joined FBA in 2004 and is totally committed to providing excellence in quality and value to our subscribers.
The following table has been prepared by the Ministry of Business Innovation and Employment (MBIE) to provide guidance on employee leave and pay, to ensure compliance with the Government Covid-19 rules.
In all options in this table, the employer and employee should aim first to reach agreement in good faith on what approach will be taken. Both parties are encouraged to seek advice to ensure that the options chosen are the best available in the circumstances.
Employee is: |
Leave entitlements for employee |
Pay entitlements |
Employee is working:
|
Not applicable as they continue to work. |
Employee should be paid, as normal, for each and every hour that they work. |
Employee is on annual leave |
Employees can use their existing entitlements. |
Leave paid in accordance with the Holidays Act. |
Employee is sick, or caring for a dependent who is sick |
Employees can use their existing sick leave entitlements. If paid sick leave is not available, paid special leave should be considered. An employer and employee may agree that other leave is taken. |
Leave paid in accordance with the Holidays Act. |
Employee is not at the workplace, cannot work from home, and is not sick |
Employer and employee should consult their employment agreement and discuss and agree options.
If the desired set of options are not provided for in the employment agreement, it would be necessary to negotiate a variation to the employment agreement. |
Leave paid in accordance with what has been agreed, including being compliant with the Holidays Act. |
Employee is not at workplace, not sick, and has not agreed some form of leave with employer |
If the parties cannot agree, the employer can direct the employee to take entitled annual leave with at least 14 days’ notice. |
Directed annual leave is paid in accordance with the Holidays Act. |
Employee is absent from work without agreed leave. |
Employer and employee should discuss options available for what happens in this situation, but could include unpaid leave. |
Employer and employee should discuss options available for what happens in this situation, but could include unpaid leave. |
Ministry of Business Innovation and Employment (MBIE)
* In cases where a government subsidy relating to COVID-19 has been granted to support employees, these employees must be paid in accordance with the terms of the subsidy.
FBA Editor
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