The Employment Relations Authority has ordered a former employer to pay an employee $16,425 in holiday pay. The employee had worked for the employer over a period of 17 years during which time a separate business was set up by the parties. After a few years of growing the new business, the employee decided to resign his current employment and focus on the new venture. At this time his holiday pay was transferred as a liability to the new business.

The employee raised the issue with his former employer but the employer ignored the letter. The ERA held that the employee was entitled to be paid his holiday pay upon resignation from the former employer and the transfer of the obligation to the new entity did not relieve the former employer of its obligation to pay.

If you are unsure about an employee’s entitlements, it is wise to obtain advice from a professional experienced in this area.

Alan Knowsley
Employment Lawyer

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