The first thing to determine is whether the employee should be paid for the holiday. This depends on whether the holiday falls on a day that would have been an "otherwise working day". In most cases it is fairly obvious if this is the case from looking at the recent work patterns of the employee. For more complex cases, you can use the this tool from the Ministry of Business Innovation and Employment: "Otherwise Working Day" calculator.
FlexiTime provides an Automate Public Holidays tool to help you handle public holidays. Please see this article for full details on this feature.
If you decide not to use FlexiTime's Automate Public Holidays feature, please refer to the instructions below:
If your FlexiTime package includes time sheets, we recommend adding time entries for the public holiday to those employees that should be paid for the holiday. Use Employee Leave as the work and Public Holidays as the category. To quickly enter this for multiple employees, create one time entry, then copy it by holding the control key down while you drag the time entry. You may want to tick Show Employees Without Time in the Options panel so you can copy to employees without any other time entered.
If you are not using Timesheets or if you don't know how many hours the employee would have worked on the public holiday you can add a line for Public Holidays directly into the pay.
For public holidays you should pay the employee for the number of hours the employee would have worked if they had worked on the day, this is called the Relevant Daily Pay. If the employee works different hours each day and you don't know how many hours they would have worked on the public holiday you can click the Use Average Daily Pay button when you edit the Public Holidays pay line. The Average Daily Pay rate is calculated by FlexiTime using the previous 12 months pay for the employee.
In some cases it may not be possible for FlexiTime to calculate the Average Daily Pay because there is not enough information, in this situation you should pay the employee an agreed rate for the public holiday based on what is fair and reasonable.
For information on how to pay an employee who does work on a public holiday, please see this article.