Good record-keeping protects the employer in the case of a dispute and ensures that an employee’s entitlements are correctly met.
The Employment Relations Act 2000 requires the employer to keep wages and time records for each employee. The Holidays Act 2003 has the requirement to maintain a holiday and leave record in addition to the requirement to maintain a wages and time record. This record may be written or electronic.
The requirements for employers to keep accurate records of an employee’s holiday and leave entitlements and payments were updated by the Holidays Amendment Act 2010 to reflect the new ability to cash-up annual holidays and transfer public holidays.
The following information must be recorded in a manner that enables the employee to verify entitlements:
- The name of the employee.
- The date employment commenced.
- The days on which the employee works, if the information is relevant to entitlement or payment under the Holidays Act (even for employees receiving a salary it is useful to keep calculations of holiday and leave entitlements)
The date the employee last became entitled to annual holidays.
- The employee’s current entitlement to annual holidays.
- The employee’s current entitlement to sick leave.
- The dates any annual holiday, sick or bereavement leave was taken.
- The amount of payment for any annual holidays, sick leave and bereavement leave taken.
- The dates of and payment for any public holiday worked.
- The number of hours worked on any public holiday.
- The date on which the employee became entitled to any alternative holiday for any public holiday worked.
- The dates and payment of any public holiday or alternative holiday on which the employee did not work, but for which the employee had an entitlement to payment.
- The cash value of board and lodgings provided.
- The cash value of any alternative holidays that the employee has surrendered for payment.
- The date of their employment ended (if applicable).
- The amount of pay for holidays when their employment ended (if applicable).
The portion of any annual holidays that have been paid out in each entitlement year.
- The date and amount of payment in each entitlement year for any annual holidays paid out.
- The day or part of any public holiday agreed to be transferred and the calendar or period of 24 hours to which it has been transferred.
Employers should also keep copies of any agreements to transfer holidays or any requests regarding alternative holidays or requests to cash-up annual holidays even if they were not agreed to.
It would also be useful for employers to record the date on which employees become entitled to sick and bereavement leave, to avoid any dispute over whether the employee is entitled to this leave.
Get sample templates for record keeping as Word or Excel documents: