Holidays Bill to cost health board $1.25m a year

By MATHEW DEARNALEY

New holidays legislation is expected to cost the Auckland District Health Board at least $1.25 million a year in extra pay for doctors and casual staff.

Many other large employers have yet to estimate how much the Holidays Bill will add to their payroll costs. But the health board is considering making submissions to Parliament's transport and industrial relations select committee over the bill's provision for all employees to be paid at least time-and-a-half for work on public holidays.

That would extend to staff on all-encompassing salaries as well as wage-earners paid by the hour, and would be in addition to the alternative day off every employee is already entitled to in return for working on a public holiday.

Employers' groups are pinning their hopes on an opt-out clause to make allowances for salaried staff and others whose pay already includes recognition for public holiday duties, even if unwritten.

The proposed legislation states that every employee working on a public holiday must be paid 1 1/2 times their ordinary pay, or some other greater amount specified in that worker's employment agreement.

Firms will have up to a year after the legislation is enacted, around December, to ensure that every employment agreement includes an explanation of how the requirement is being complied with.

But Auckland health board human resources general manager John Woods does not believe existing agreements covering about 1000 doctors and 1200 casual staff can be interpreted as including allowances for work on public holidays.

Although nurses and most health workers receive penal rates for public holidays, he estimates that the board will have to pay about $600,000 more a year to doctors and $650,000 to casual workers.

Other large employers contacted by the Herald have yet to estimate potential liabilities, but an annualised salary agreement covering thousands of dairy production workers at Fonterra includes an allowance for public holidays.

Northern Employers and Manufacturers' Association services manager Graeme Perfect said most employers would probably regard the salaries they paid as high enough to include allowances for public holiday work.

"Most employers would say the salary includes sufficient dollars' compensation in recognition of a requirement to work from time to time on public holidays," he said.

But translating that sentiment into an employment agreement would require the consent of both parties, and any dispute would be defined as an employment relationship problem open to mediation.

Business New Zealand executive director Anne Knowles said she expected employees earning adequate salaries would be required as a matter of good faith to give their consent.

But she hoped the final draft of the legislation would clarify this, to ensure employers in both the private and public sectors were not exposed to considerable extra costs.

Recruitment and Consultancy Services Association national branch president James Cozens said a 6 per cent loading paid to casual staff covered only annual leave, not public holidays.

His organisation feared economic growth would not be sufficient to support extra pay on public holidays.

This could see employers rostering fewer staff to work on these days, raising concerns about the health and safety of those left behind with more duties to perform.

Public holidays

* NOW - No statutory requirement for employees to receive extra pay for working on any of the 11 public holidays, although this is negotiable, and every employee who does so is entitled to an alternative (lieu) day off, at a time to be agreed with the employer.

* PROPOSED - Every employee who works on a public holiday must be paid at time-and-a-half or some other amount specified in an employment agreement, whichever is the greater.

Every employment agreement must include an explanation of how the time-and-a-half requirement is being met. The entitlement to a day off in lieu is to remain.