Our Platform | Leave & Payroll (2024)

Leave and payroll FAQs

• What are key features of HR payroll software?

  Having a payroll system that pays employees correctly and on time, in a way that meets legal obligations under the laws covering payroll processes is the most important feature of any HR payroll software. The system also has to ensure any tax or other deductions are made, and a record of the number of hours an employee worked and the pay for those hours, as well as holidays and leave balances are kept.

• What are the features of a leave management system?

  Leave management systems provide a process for recording and tracking employee time-off, from requesting and approving leave to maintaining accurate leave balances and matching leave with payroll. A good modern leave management system should be digital and cloud-based with minimal manual processing and easy integration, so employees and managers can check and control leave and requests for time-off, and ensure the company's leave processes are legally compliant.

• What are the benefits of using an integrated leave management and payroll system?

  An integrated payroll and leave management system eliminates manual processing of leave and payroll data, reduces paperwork, increases transparency, and, in most cases, makes both processes quicker, more accurate, and more cost-effective.

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• How many holidays does an employee have in New Zealand?

  New Zealand employees are legally entitled to:

  • Annual leave: 4 weeks a year per each 12 months of continuous employment
    - Employees on a fixed term agreement of less than 12 months or a casual employment agreement shall be paid 8% of holiday pay on top of their gross earnings instead.
  • Public holidays: up to 12 holidays each year, if they are days they would normally work
  • Sick leave: All employees (including part-time and casual employees) are entitled to 10 days sick leave if:
    - they have six month's current continuous employment with the same Employer, or
    - they have worked for the employer for six months, for an average of 10 hours per week, and
    > at least one hour in every week
    > or 40 hours in every month
  • Bereavement Leave: after six months of continuous service as an employee is entitled for a minimum of three days of bereavement leave. The reasoning as to whether Bereavement Leave will be accepted is outlined in section 69 of the Holidays Act 2003. Employees are entitled to a minimum of one day per bereavement if another person dies and their employer accepts they’ve had a bereavement.
  • Parental leave: a mix of paid and unpaid leave depending on the specific eligibility criteria.
    - Primary carer leave
    - Partner’s leave
    - Extended leave
    - Special leave
    - Negotiated carer leave
  • Domestic violence leave: up to 10 days’ paid leave after 6 months continuous employment.
  
  On top of this, employees can apply for unpaid leave for any reason, but it’s up to the employer to agree to it.

  Read more about public holidays in NZ

• How can I prevent my employees from abusing sick leave?

  There are several ways you can prevent employees from abusing sick leave. You can legally ask for proof of sickness or injury once an employee has been off work for a day or less, but you must inform them as soon as possible. If a person has been using a lot of sick (or other) leave, honest communication could help understand if there are wider issues involved. A pattern of abuse may require further action, but you should get expert advice to ensure you follow proper process.

  Read more about sick leave entitelments