Q: I have a query on leave cash ups as far as whether they should be included in leave calculations. NZPPA Payroll Practice guide has the following to be included in AWE or OWP & RDP or ADP
- Long service leave cashed out while employed – Yes for AWE and Yes for ADP
- Alternate holiday cashed out while employed – Yes for AWE and Yes for ADP
- Annual leave minimum entitlement 1 week cashed up while working – No for AWE or OWP & No for RDP or ADP
Can you please advise why the Annual leave minimum 1-week entitlement is not included but Long service leave & Alternate holidays are?
A: Long service leave is not law and is not part of the Holidays Act, so if paid out, it is taxed as extra pay and is part of AWE and ADP(if applicable).
There is nothing in the Holidays Act that excludes an Alt day from leave gross earnings, unlike one week of annual holiday entitlement, which is excluded by law.