Negotiated / Agreed Annual Leave

Many companies grant their Employees more Annual Leave than the Holiday's Act provides for. It is our recommendation that this extra Leave is kept totally separate from the Statutory 4 Weeks Annual Leave. Our reasons for this are:

• Anything above the minimum entitlements is an agreed term – therefore the Holiday’s Act calculations and other applicable clauses do not apply.
• The calculations etc. must be agreed between the employee and employer.

Best Practice

• It is not called Annual Leave and entitlement is separate from the legislative Annual Leave Minimum Entitlements.
• It is agreed as to the accrual method for this leave (usually it would be weeks/days/hours – as the % does not apply – it is above minimum entitlements).
• It is agreed as to the method of payment (calculation for this leave – it could just be hours x rate). It does not have to be based on the same calculations as Statutory Leave.
• It is agreed as to whether it can be cashed up – if Yes then this will add into the Gross Earnings for Leave Calculations.
• It is agreed as to whether if not used it is paid out on termination – if Yes it would attract 8% Holiday Pay.
• It is agreed if called Annual Leave whether the % would change from 8% to 10% - not recommended as this is an additional unforeseen cost to the business usually.

Here at Ezypay we have the ability to meet all of the above conditions and can set this leave type up as ANLN (Annual Leave Negotiated) and as all the points above suggest, you can set your own rules around it.

Agreed Annual Leave should not be confused with Long Service Leave that normally applies after working a set number of years.