this post was submitted on 05 Jun 2024
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For annual leave, having an accural system is so much simpler. The current system seems simple, but it is far from it, the main complications come around working extra to cover for others, every instance that this occurs requires a recalculation of your entitlement, in an accural system this kind instance is a non-issue.
I'm not sure about the sick pay changes, I'd have to look into it more.
How does working extra affect sick leave entitlement? My understanding is you just get paid what you otherwise would have been paid on that day, but don't have to work it. I don't understand how sick leave entitlement changes from extra shifts?
(Annual leave is a whole nother ballpark, and is definitely affected by extra shifts).
Not sure, at the moment it is "10 days", but what constitutes a "day". For salaried employees, it is really simple. For wage workers it is the normal rostered shift, but I'm not sure that it is fair.
Should you accrue sick days at 1/2 (10 days Vs 20 days) the rate of annual leave? Would that be better? This way any extra work you do would accrue extra sick leave.
Yes, I think that makes sense. However, from a National/Act point of view, you get into dangerous territory. What if someone works 6 days a week? Under the old system you'd get 10 days regardless. But under this new accruing system, you are still working 8 hours a day but you're accruing at whatever the hourly accrual is times 48 hours per week. You'll end up with 12 sick days a year!
Another potential issue is all the contracts out there that X days of sick leave. The government is saying how much easier it will be for payroll software providers, while the payroll software providers are probably fainting at the thought of now having to handle employees grand-parented in on an old system with new employees starting on a completely different calculation system 😆
It will be interesting to see how the actual bill shapes up once it's released.