Unions are warning that workers who rely on overtime or commission could lose hundreds of dollars per week when they take annual leave under the new Employment Leave Act.
The Act, which will replace the Holidays Act in 2028, pays leave at an employee’s minimum hourly rate rather than their average earnings, meaning that overtime, commission and bonuses will not be considered.
Commission earners who cannot agree a leave payment rate with their employer default to minimum wage. Workers First Union has warned many people simply won’t take holidays because they can’t afford the drop in pay. Read more at RNZ and B2B News.
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So what happens when the base wage for people on commission is lower than the minimum hourly rate, which it always is BTW