Alternative Leave


Employees accrue Alternative Leave by working on a public holiday, provided that day is an Otherwise Working Day. This provides an alternate day that they can have off instead of the holiday on which they worked.   Alternative Leave is also referred to has Alternate Leave.

Alternative leave (as with sick days, public holidays and bereavement leave) is primarily recorded and paid out in days. It is paid out using the relevant daily pay or the average daily pay. The balance of alternate days for an employee can be seen when you edit an employee on right hand side of the Leave tab.

FlexiTime also records the balance of hours based on the number of hours actually worked on the public holiday and the number of hours paid out. This is purely informative - it can give an idea of any imbalance if employees are working short days on public holidays but taking longer days as alternate days.

The reports under Payroll > Reports > Leave Reports show alternate leave balances. The last section of the Leave History Report shows when alternate leave was accrued and taken.

How do I reflect alternative leave in a pay?

This article describes how alternate leave is accrued on public holidays.

When an employee takes Alternative Leave, record this in their timesheet using the Employee Leave work and the Alternate Leave category. If you don't use timesheets then you can add the Alternative Holiday Taken pay code directly to the pay to record the number of days and pay the hours of Alternative Leave taken. This article contains more information on what pay rate should be used.

If the alternative holiday is not taken within 12 months of it accruing, the employer can direct the employee to take the alternative holiday. Alternatively at that time the employee may ask the employer to make a payment instead of having the holiday off. If the employer agrees to make a payment, the level of payment is a matter of agreement between the employer and employee. 

If you cash up alternative leave, we recommend adjusting the alternative leave balance directly on the employee's leave tab, then use the Discretionary Bonus pay code in the employee's pay, ticking Extra Pay. This will ensure the payment is handled the same way as Annual Leave Paid Out, taxing as an extra pay and excluding from Holiday Pay calculations. If using the Average Daily Pay rate, this can be found on the employee's Pay History report.

If any alternative holidays are outstanding at the time of resignation or termination, these are paid out. They will be added in automatically when you tick Final Pay, but you may need to adjust the rate.

MBIE has more information on Alternative holidays.

Have more questions? Submit a request