Media statement
Monday, March 23, 2009

Employees want to cash up more than one week's holiday

Businesses are pleased they will be able to agree to at least some employees' requests to cash-up holidays, now that the Government plans to allow this, says David Lowe, Employment Services Manager for the Employers and Manufacturers Association Northern (EMA).

"Employees have been asking employers to cash up their holidays for many years, even when the holiday entitlement was three weeks," Mr Lowe says.

In New Zealand, paid annual leave was raised to a minimum of four weeks in 2007. The Government is now planning to alter the Holidays Act so employees can negotiate to cash-up one of those four weeks if they don't want to take all four weeks off each year.

"Limiting the choice to cash-up just one week's leave will be difficult for some employees to understand, but at least some progress is being made to accommodate the many requests employers receive.

"Given the number of employees who ask to cash-up holidays, allowing two weeks to be cashed-up would strike a better balance between accommodating their wishes and preserving the good practice of taking a break from work.

"The average amount of unused holidays in New Zealand has skyrocketed to nearly four weeks per employee, according to the EMA's 2008 National Employers' Wage and Salary Survey.

"Employees then get another four weeks holiday every year, some of which they do not take, leading to a spiraling increase in the number of unused holidays.

"It makes sense for an employee to ask to cash-up holidays they do not want to use.

"What's more, employers support the notion that only an employee can initiate a discussion to cash-up holidays.

"Employees who primarily make the requests to cash-up are those who work statutory holidays and accumulate other days off as well.

"However, right now employers may be less inclined to agree to a cashing-up request, preferring instead that employees take time off with pay, while production is down."

ENDS

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