Q: Can you please assist, we have an employee who has spoken to an employment mediator regarding cash up of annual leave.
Our understanding is that an employee can only cash up a maximum of one week annual leave in any entitlement year. The below link to Employment NZ site appears to confirm this.
The employment mediator who has contacted us on behalf of the employee, is stating that if a cash-up was not used in a previous entitlement year that the employee can also cash that in?
I am not aware of this, is this true and if so do you have anything in writing I can read regarding this? Also our payroll system physically doesn’t allow anything more than a week cash up in the anniversary year.
A: No, what you are doing is not the correct application of cashing up. It is always only from the current entitlement year.