Leave Entitlements and Covid

Covid Leave and Pay Entitlements for Employees

With the recent change to Red of the Traffic Light System, we have put together the below information around Leave and Pay Entitlements specific to likely COVID-19 situations which may affect you and your staff.

Keep in mind that regular employment law still applies regardless of the situation you may find yourself in. This includes:

Signed written employment agreement for every employee, and doing what that agreement requires
Keeping the agreements up to date, including documenting any changes that affect rates of pay or hours worked
Meet legislative and/or any relevant contractual requirements for changing arrangements
Ensuring that you are compliant with all minimum standard legislation and the Employment Relations Act 2000

It is very important for employers and employees to discuss how the changes in the traffic light may affect how they would normally work; how much work may be available and how to work safely at home or their usual place of work. By keeping the lines of communication open, it will assist both the Employer and Employee to navigate the complex and rapidly changing situation COVID-19 presents us with.

The following table provides guidance to employers and employees about these entitlements. As mentioned above, communicate with each other, and seek to reach an agreement in good faith on what approach will be taken.

Employee is:	Leave entitlements for employee	Pay Entitlements
Employee is working: · At home · At the workplace	Not applicable as they continue to work.	Employee should be paid, as normal, for each and every hour that they work. This must be at least the applicable minimum wage.
Employee is on annual holidays	Employees can use their existing entitlements. Employees can agree to take annual holidays in advance, but they cannot be compelled to do so.	Leave paid in accordance with the Holidays Act and the applicable minimum wage.
Employee is sick, or caring for a dependent who is sick	Employees can use their existing sick leave entitlements. If paid sick leave is not available, paid special leave should be considered. An employer and employee may agree that other leave is taken.	Leave paid in accordance with the Holidays Act and the applicable minimum wage.
Employee is not at workplace, cannot work from home, and is not sick	Employer and employee should consult their employment agreement and discuss and agree options. Special paid leave should be considered especially in the short term while you discuss what happens next. Other options that could be considered include: · annual holidays · leave without pay* · long-service leave (if relevant) · alternative holidays (if relevant) · other payments (even partial payments) by the employer for a certain period of time · any combination of the above. If the desired set of options are not provided for in the employment agreement, it would be necessary to negotiate a variation to the employment agreement. If a variation is not agreed, then the existing agreement must be followed. Note: if an employer considers broader variations are needed to hours or other aspects of the agreement, the employer should following restructuring guidance.	Leave paid in accordance with what has been agreed, including being compliant with the Holidays Act and the applicable minimum wage.
Employee is not at workplace, not working from home, not sick, and has not agreed some form of leave with employer	If the parties cannot agree, the employer can direct the employee to take entitled annual holidays with at least 14 days’ notice.	Directed annual holidays are paid in accordance with the Holidays Act and the applicable minimum wage.
Employee is absent from work without agreed leave.	Employer and employee should discuss options available for what happens in this situation, but could include unpaid leave.	Employer and employee should discuss options available for what happens in this situation, but could include unpaid leave.

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