The Holidays Act is again proving problematic for employers. This time the confusion is around whether employers should be paying workers who are off work on ACC for public holidays. Until recently, it has been accepted that the ACC compensation covers the public holiday. Now a view has been expressed that employers may be liable to pay for the public holiday, even though the employee is receiving compensation from ACC.
ACC’s website indicates that employers may be liable and directs the reader to the Ministry of Business, Innovation and Employment (MBIE). However, MBIE has removed all content from its website and is working on updated guidance.
Watch this space as to whether employers are liable for paying their workers for public holidays while they are receiving ACC compensation. If they are liable, there is a possibility of employers being liable to backpay up to 6 years for affected employees.
