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Average weekly income

Clients can choose an income assessment period of either 26 or 52 weeks to calculate their average weekly income for the initial stand-down. Therefore you will need to calculate the average weekly income for both 26 weeks and 52 weeks.
Income (before tax) can include, but is not limited to:

To calculate the average weekly income over a 26 week period, divide by 26, the total amount of income received by the client in the 26 week period immediately before their entitlement date. If this is the one week minimum, then the stand-down period is one week, otherwise calculate the average weekly income over a 52 week period.

To calculate the average weekly income over a 52 week period, divide by 52, the total amount of income received by the client in the 52 week period immediately before their entitlement date.

You should use the calculation that gives the client a lesser stand-down period.

Note any overseas earnings received by the client before their entitlement date must be included in the calculation of the client's average weekly income.

Partners

When the client has a partner who has been working or is still working, use the higher of their two incomes over the previous 26 or 52 weeks to calculate the stand-down.

Do not combine their incomes.

However, if the other partner's wages or holiday pay continues beyond the commencement date, charge this income against the benefit in the usual way.

For more information see:

Legislation

All employees in New Zealand are entitled to at least 4 weeks paid annual holidays after 12 months employment. When an employee takes an annual holiday day (also known as annual leave), they are paid holiday pay instead of their regular wages or salary.

Casual workers and people on fixed-term contracts are not always paid holiday pay the same as permanent employees. These people may either have their holiday pay:

When an employer terminates a person's employment, they must give the employee a period of notice unless they are being terminated due to misconduct. Notice periods are often 2 to 4 weeks.

Usually an employee works out their notice period, however an employer can choose to:

In all cases, the ...

When a person enters into a fixed-term contract or engagement, instead of receiving salary or wages, they may be paid at the end of the term of the contract or on completion or the work specified in the contract.

In some cases contractors are paid in instalments and the final instalment is paid on completion of the contract. This is often the case for people hired to complete a specific task ...

This includes:

Legislation

This is a payment that represents a leave entitlement an employee had accrued but not taken at the time their employment was terminated.

Employers are not legally required to pay out unused sick leave, family violence leave, long service leave, bereavement leave, or other leave entitlements specified in a person's employment agreement, but some choose to include it in their final pay.

Note family violence leave is also known as domestic violence ...