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Flexible Working Arrangements - What you need to know...

Many employers are willing to put in place flexible working arrangements so that staff can remain in the workforce but meet their other life responsibilities or plans. Usually this is just done by discussion and agreement on what will work best for both the employee and employer. If you cannot reach agreement then employees have the right to request flexible working arrangements under the Employment Relations Act. Employees can seek to vary their hours of work, days of work, or their place of work (e.g. an employee can request that they be allowed to work from home).

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NZ’s Employment Law Landscape Set to Change following New Government Announcement

 On 19 October, Winston Peters and New Zealand First announced their decision to form a new government with Labour and the Greens.

New Zealand’s employment law landscape is now set to change and employers need to be ready to adapt.

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NZ IFRS 15: Revenue from Contracts with Customers

Effective for reporting periods beginning on or after 1 Jan 2018 - This new accounting standard establishes principles to be applied in reporting information about the nature, amount, timing anduncertainty of revenue and cash flows arising from a contract with a customer. a gap in the market, a need that you can satisfy better than others?

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Gross Earnings

Public holiday, bereavement and sick leave and alternative holiday payments are calculated using relevant daily pay or average daily pay (if applicable). Annual holidays are calculated differently.

ADP is a daily average of the employee’s gross earnings over the past 52 weeks. This is worked out by:

  • adding up the employee’s gross earnings for the period, and

  • dividing this by the number of whole or part days the employee either worked or was on paid leave or holidays during that period.

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Relevant Daily Rate (RDP) for Public Holidays, Alternative Holidays, Sick Leave or Bereavement Leave

Relevant daily pay (RDP) is the pay that an employee would have earned for working on that day.

RDP includes:

  • payments such as regular (taxable) allowances, commission and bonuses that would have received by the employee on the relevant day

  • overtime pay, if the employee would have received this on the relevant day

  • the cash value of board or lodgings if this is provided by the employer.

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Average Daily Pay

Public holiday, bereavement and sick leave and alternative holiday payments are calculated using relevant daily pay or average daily pay (if applicable). Annual holidays are calculated differently.

ADP is a daily average of the employee’s gross earnings over the past 52 weeks. This is worked out by:

  • adding up the employee’s gross earnings for the period, and

  • dividing this by the number of whole or part days the employee either worked or was on paid leave or holidays during that period.

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Annual Holiday Pay

Employees are entitled to a minimum of 4 weeks pay for every 12 months of service. A week's Holiday Pay for annual leave is the greater of:

  1. The average weekly earnings; and

  2. The current ordinary weekly pay at the time the leave is taken.

Unless you have software that will do this for you, these calculations need to be done every time an employee takes annual leave.

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Business Plans: Part 3

This is the final in our 3 part series on business plans. In Part 1 we examined the need for a business plan and listed the business plan core components. In part 2 we examined in detail the components of the plan. In this issue we review how all these components can be brought together to provide a practical framework for your business.

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