Employees in New Zealand are entitled to a minimum of four weeks paid annual leave and up to 26 weeks unpaid parental leave. While this is great news for parents and caregivers, it’s important they know how a period of maternity leave can affect future holiday pay.
Employees who have recently taken parental may be in for a shock when they apply for annual leave and discover a low rate on the payslip. As an employer or HR manager, it may be up to you to help them understand the effect parental leave has on annual leave.