What rate is discretionary leave pay at?

Question:

 

The query is in regards to discretionary leave and the rate of pay.
Should it be paid at the RDP rate.

I have searched the website of New Zealand’s Department of Labour to no avail.

 

Answer:

 

Discretionary leave is not covered by legislation in NZ.  It is not an official leave type, it is additional leave that an employer has given to the employee (by agreement).  So this means you do not have to use RDP.  I would suggest you use their base rate.

 

A factor to consider is if the company has always paid discretionary leave at the RDP rate then you may have to use that calculation because of precedent.

 

ePayroll FREE Weekly Newsletter

Payroll News, Tips and Advice Delivered FREE to your inbox. Privacy Statement: your email address will never be revealed to third parties.
Click here to access the ePayroll Archive