Q: HR tend to grant 5 weeks of annual leave in the contracts stating in accordance with the Hols Act, does not separate this additional week’s allowance.
I am just checking that the following process is correct, ie paying out the 5th week can be done as over & above Act & when paid out is treated as an extra payment attracting the “ongoing employment” type calculation for tax and is included as it is a gross taxable payment in AWE?
A: The 5th week has nothing to do with the Holidays Act, it is an agreed term, if you have stated it has been provided under the rules of the act then you must follow those rules.