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August 13, 2024 14 mins

Gareth Abdinor is an Employment, Workplace & Information Expert and Director of Abdinor Employment Law.

He regularly joins Simon Barnett and James Daniels to answer listeners' employment related questions.

Today, calculating holiday, an employer saying no to annual leave after already approving it, the difficulties of lengthy leave without pay, among other things.

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Speaker 1 (00:06):
You're listening to the Simon Barnett and James Daniels Afternoons
podcast from News Talk ZEDB.

Speaker 2 (00:12):
We're with Gareth Abdenor, director of abden Or Employment Law
and an expert when it comes to employment. Great to
have you with us, Gareth, Thank you mate, it's pleasure
to be here now. Gareth, as I mentioned, is director
of Abdenor Employment Law, so he's open to your questions.
Eight hundred eighty ten eighty O eight hundred eighty ten
eighty or you can text us nine to nine two.

(00:33):
We'll get through as many as we can.

Speaker 3 (00:35):
We've got a text to here saying hi Gareth. My
husband works a three hour weekend shift. He's on a
salary so it doesn't get paid for it, but gets
three hours off later in the week. Is this legal?
I see? Also, he's on the call list for the
alarms because we live nearby. We called it out at
times of all times of the night and at the weekends,

(00:57):
but he gets no conversation for that because they don't
want to pay a company to monitor the building.

Speaker 4 (01:03):
Oh this is a fantastic one. There's so much in it.
The first point about him working three hours on the
weekend and then having three hours off and he doesn't
get paid for it. Well, if those are the agreed
hours of work, he does get paid for it, He
gets paid his salary. And so often see this where

(01:25):
people on a salary are still thinking like a waged employee,
and it's very, very different. I guess the question is
are those the agreed hours of work?

Speaker 1 (01:35):
Though?

Speaker 4 (01:36):
If they are, well, there's no issue with that right.
The being on call is a bit more interesting because
it depends on whether how often does this happen. If
it's happening all the time, there's an argument that it's
not reasonable and it's not covered under the salary, and

(01:57):
so you'd really need to look at how often does
it happen, how inconvenient is it? How often does he
get called out? You know, if it happens, you know,
once a month, that might be reasonable. If it's happening
three or four times a week, arguably that wouldn't be
reasonable and it wouldn't be covered by the salary.

Speaker 2 (02:18):
A good answer, Gareth, I'm in sales and I get
paid salary and commission. If I take four weeks off,
do I only get my salary?

Speaker 4 (02:28):
Oh?

Speaker 3 (02:29):
I know the answer.

Speaker 4 (02:30):
I love it. You know, anyone who's been listening to
the show for a while knows how much I love
Holidays Act questions. So, the Holidays Act is a bit
of a dog when it comes to legislation. But when
you take in your holidays, you need to get paid

(02:51):
either your ordinary weekly pay or your average pay over
the last twelve months, whichever is greater. Oh now, when
it comes to commissions, it really depends on whether you
regularly get paid those commission will not if you regularly
get paid the commissions. The definition in the Holidays Act

(03:11):
says that that should be included in the calculation of even.

Speaker 3 (03:15):
If the commission is a different on a monthly basis.

Speaker 4 (03:21):
So that that's a really quick summary of really complicated
legislation with all sorts of formulas and stuff.

Speaker 2 (03:29):
But what was the first part of that that you
mentioned about the Because.

Speaker 4 (03:35):
They're different ways of calculating the holiday pay, but generally
the employee gets the benefit of that where they get
the greater of calculations. So as always go to Employment
dot govt dot n Z and there's a there's a
comprehensive section there on holiday pay and how it's calculated.

Speaker 2 (03:54):
As you say, the Holidays Act is a dog because
did you see the story. It was just a middle
of last week about McDonald's having to potentially backpay, and
it just happens all the time.

Speaker 4 (04:03):
And one of the biggest issues as well was a
lot of the payroll providers their programs don't actually fit
with the Act, and so the Act calculates leave in
a certain way and most of the payroll programs calculator
in a different way. Yes, because it's easier to do

(04:24):
it that way, but it leads to some unintended consequences.

Speaker 2 (04:27):
Which was yeah, which I think is what McDonald's. A
number of other businesses at least they were proactive and
sort of have offered it up and said we've got
it wrong, so you have to make your claim. But
what a nightmare.

Speaker 4 (04:37):
But ultimately, most of these outfits that have had to
pay back pay for holiday pay, they didn't try and
pay the incorrect amount. So yeah, it's not ideal.

Speaker 3 (04:50):
No. Now the Texas says Hi, Gareth. My wife is
a healthcare assistant. She applied for leave three months ago
and the companies come back last week and declined her leave.
We're going overseas and the tickets were booked in advance.
Can she still go on leave? Will she be fired
from her job? She's Bobby Bobby Man.

Speaker 4 (05:11):
Goodness, I guess my question isn't the question that the
caller has asked. My question is when did they book
the tickets? Because why did you book the tickets before
you had approven.

Speaker 2 (05:26):
That's the sort of thing I would do.

Speaker 4 (05:28):
Yeah, people, it's not an aumous time, man. It kind
of sometimes doesn't work out that well.

Speaker 2 (05:33):
So no, but I would do that. That is the
kind of thing i'd do because I'm an optimist, So
I'd book the tickets, presuming because I've got a good
relationship with my bosses that they would say yes. So
in this instance, if she had booked the tickets well
in advance before getting the leave approved and they've now
said no, I mean surely you could go to your
employer and say, look, I booked these I shouldn't have,

(05:55):
but I've done it.

Speaker 4 (05:56):
Yep. And it really comes down to whise the employer
declimbed the leave. I mean, if they short staffed, they
were within their rights to say, well, no, you can't go.
And if you go, well then you in breach of
your employment agreement.

Speaker 2 (06:11):
MM hmm.

Speaker 4 (06:12):
Often this happens and the parties can come to a
reasonable compromise. But but it's not a great idea to
go and book flights if you actually have leave approved yet.

Speaker 2 (06:24):
Right, But on looking at the positive side, if there
is one, if they approved to leave, she booked the
tickets and then they said, I'm sorry, we're now short staffed.

Speaker 4 (06:34):
They would be different and.

Speaker 2 (06:36):
You could tell them to get stuffed in a nice way,
you know, please be stuff.

Speaker 3 (06:40):
Yeah, yeah, are you talking about the employee telling them
to get stuffed.

Speaker 2 (06:44):
No, I'm not I'm joking. No, no, no, And then they
book tickets and then the employee Yeah, then Garret saying
they would definitely have grounds these the employee would have
grounds to push back.

Speaker 4 (06:59):
And I thought they could still go on there leave
if they've if they've had the leave approved and then
they've incurred costs booked their flights.

Speaker 2 (07:07):
That surprised me. That's all not mate, You're a hard man, James.
Loads of texts you have to get through. Here, will
work as many as we can. Hi, Nathan, goody, guys,
you're right, Yeah, good mate, thank you now. I pulled
over specially just thinking about this healthcare worker you're just
discussing now.

Speaker 1 (07:24):
She said, you didn't answer the question.

Speaker 3 (07:27):
She applied three months ago and they replied one week ago.

Speaker 2 (07:32):
What's a reasonable period of time that an employer must
reply with regards to leave because she's accumulated a quarter
of a year's worth of that time. Excellent question.

Speaker 4 (07:44):
That sounds like a good employee advocate here. That's a
great question, and the employer should should respond in a
reasonable amount of time. Of course, did the employee chase
the employer up? You know, if this got accidentally overlooked?

(08:06):
You did the employee just go well, I've put in
the application. I'm going to take it that it's been approved.
Did you say I haven't heard from you? Is this okay?
So I don't think we have enough details. But that
is a good point, and it was one that I
thought of. Both parties have to act in good faith.

Speaker 2 (08:25):
Right, that's the critical thing.

Speaker 3 (08:26):
All right? Thanks? Nathan Texas says, hello, boys, I am
on a salary and I'm not rostered on a Monday,
so I really get the public holidays that occur on
a Monday. I miss out on several days a year.
Should I be compensated? They're on a salary.

Speaker 4 (08:42):
Well, I think there's that use of the word should.
You could certainly argue that you should get some sort
of benefit, but no, legally, if you don't work on Mondays,
then you miss out on those public holidays. And that
happens to people that work on other days and they

(09:02):
miss out on public holidays too.

Speaker 3 (09:05):
So if it's a rostered day off on a public holiday,
you don't get it. Do you not get any time
off in.

Speaker 4 (09:12):
Lou It really depends on what type of holiday it
is and if it would be a day that you
would usually work. Now, if you don't work on.

Speaker 2 (09:23):
Mondays, right, that's the key thing. That's the key thing, Buma,
which is why we don't. Oh, we don't either.

Speaker 4 (09:31):
Should we get some compensation for you guys?

Speaker 2 (09:33):
I think we should change your answer?

Speaker 4 (09:36):
Yeah, I'll see what I can do.

Speaker 2 (09:37):
Yeah, Hi, Gareth. Our company is trying to get our
leave balances as close to zero as possible. Can this
be enforced?

Speaker 4 (09:45):
Hmmm, that's a good one. It is sensible for a
company to manage leave balances, and it depends on what
leave balances we're talking about, and often people misunderstand this.
There's leave that you're entitled to and leave that you're accruing. Now,

(10:07):
it would be quite sensible for a company to try
and reduce the entitled leave. And this is for a
few reasons. The first one is that's a contingent liability
on the company's books, and so it's a good idea
to keep that low. A reason that's slightly less cynical
is that the whole purpose of leave is so that

(10:30):
your team is rested, and so it's a good idea
to make sure that they actually take their leave. What
I see all the time is that employers are often
not good at managing leave, and so people don't take
leave and they build up a huge amount. That's not
good because it's not good on the books. It's not good.

(10:52):
If the employee resigns, they have to get paid out
that leave, and often they stress them tired.

Speaker 2 (10:57):
Yeah, very good. Okay.

Speaker 3 (10:59):
Another textas saying Gareth, I am an employer and I'm
struggling with staff requesting long leave without pay up to
three months? Should I be accruing and you'll leave over
this period?

Speaker 2 (11:13):
Does that make sense?

Speaker 3 (11:13):
That lasts?

Speaker 4 (11:14):
But yeah, So leave without pay is quite a tricky
one and it's quite difficult to generalize because the parties
can agree on how they treat the acquural of leave,
et cetera. On leave without pay period. But this call
is right. There are a lot of businesses that are

(11:36):
having to deal with employees that are asking for extended
periods away and it can be very, very difficult to manage.

Speaker 2 (11:45):
Can you could an employee just point blank say we
don't do leave without pay. You've got your annual leave,
you've got your sick days, which have increased to ten.
That's plenty. We don't do leave without pay.

Speaker 4 (11:55):
No, you can't, because you've got to treat each case
on a case by case basis. You can have a
policy that seers we generally are not in favor of it,
but if someone has a particular reason and they apply
for it, you do have to consider it on a
case by case basis. Okay, you're also entitled to say

(12:16):
no after you've considered it in good faith.

Speaker 2 (12:19):
Right, We'll try and get through two more. Gareth, I
work in sales and I am about to be made redundant.
Can my employer enforce the non compete in my contract?

Speaker 4 (12:29):
Potentially? Yes, Again, that's something that we can't. We can't
give you an answer one way or another without more details.
But it depends on whether the restraint is considered reasonable
or not. Now, reasonableness depends on the geographic area, the
time period of the restraint, and what it is that

(12:51):
you actually do. Right, So you can't just prefer. You
can't prevent competition, but you can prevent unfair competition.

Speaker 3 (12:59):
Great, Okay, as holiday days go, they are yours, not
the bosses. This is what a text is saying, they're yours,
not the bosses. Within reason.

Speaker 4 (13:10):
Yeah, that's the key point there. Within reason. So the
acts is that the leave needs to be agreed between
the parties, and if it can't be agreed, then an
employer can instruct the employee to take leave on fourteen
days notice. So yes, that entitlement is yours as an employee,

(13:33):
but when you take it has to be in consultation
and agreement with your employer.

Speaker 2 (13:37):
Okay, one more question and we'll have to wrap it up. Well,
keep all the texts. We didn't get through today though. Hi, Gareth,
I'm on's salary and also have a twenty percent bonus
in my contract. Every year for the last seven years,
I've got my bonus. This year, we achieved more than
last year's sales, however, didn't achieve inflated budget growth numbers.
We got zero bonus. Huge shock. Is that legal?

Speaker 4 (14:01):
Potentially yes, as it really comes down to exactly what
the bonus provision in the agreement says. It may be
that it depends on meeting the budget and the budget
hasn't been met, so potentially yes. Of course, there's always

(14:21):
the employer needs to act in good faith, as does
the employee, so if they've artificially inflated budgets so that
you don't get your commission, then you may have a claim.

Speaker 2 (14:32):
Very good mate, We love having you in Gareth, Thank
you my pleasure. Abdnor Just a reminder Gareth as director
of Abdenor Employment Law and I also should point out
the content of this segment as general in nature and
is not legal advice. Any information discussed is not intended
to be a substitute for obtaining specific professional advice and
shouldn't be relied upon as such. Thank you again, Gareth.

Speaker 3 (14:51):
Thanks mate.

Speaker 1 (14:53):
For more from Simon Barnett and James Daniels. Afternoons, listen
live to news talks I'd Be or follow the podcast
on iHeartRadio.
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