The Employment Act sets out leave entitlements, and the rules around what happens to untaken leave are worth knowing.
Annual leave
Employees accrue paid annual leave under the Act. Contracts and collective agreements frequently improve on the statutory minimum.
Untaken leave is paid out
When the employment relationship ends, employees are entitled to payment in lieu of untaken statutory annual leave and other accrued entitlements, in addition to any notice pay and, where applicable, severance benefits.
Those are separate items. Severance does not absorb leave pay, and leave pay does not absorb notice.
Why tracking matters
Employers are expected to track leave balances and run a final payroll including all accrued entitlements to the last day of employment.
If your employer does not maintain a clear record, keep your own. Note days taken and any requests refused.
Maternity leave
Female employees are entitled to maternity leave under the Act, with associated protections.