There’s no doubt that independent schools in New Zealand face complex payroll challenges, especially when it comes to leave management.
With many staff not working during term breaks, it may look like school employees receive leave beyond the minimum entitlements of the Holidays Act, but this doesn’t mean the legislation doesn’t apply.
When calculating holiday pay, for example, schools must ensure that they are paying the higher of average weekly pay or ordinary weekly earnings. This means all components of pay, including allowances and extra duties, must be included in the calculations.
Schools may also have unique leave arrangements that differ from standard practices followed by the Ministry of Education, which makes ensuring leave entitlements are aligned with the Holidays Act’s minimum entitlements challenging. Another example is where staff have more than one role at a school, which complicates the task of calculating their leave entitlements.
These challenges highlight the need for schools to have robust payroll systems to record and calculate leave accurately, efficiently, and transparently, which requires meticulous setup and management.
To achieve this, schools should look to a provider that offers an engaged, hands-on implementation process, with knowledgeable consultants who work closely with you to identify and resolve potential issues, make informed decisions, and set up your payroll systems correctly from the outset with standardised best practices. When transitioning to a new payroll system, schools can benefit from being open to better practices to support compliance and efficiency. Beyond this, it is critical payroll practitioners stay updated on any changes to the law to remain compliant.
For more on the common challenges New Zealand organisations face relating to the Holidays Act, and practical steps employers can take to better manage the complexities of the Act, take a look at our ebook The Holidays Act decoded, developed by Datapay’s resident payroll expert, Chris Mar.
