Answer
No. An employee who works overtime will have their annual leave rate adjusted upward to compensate for this. We expect to see waged employees with a higher rate than their usual hourly rate for holidays if they work extra hours or they work overtime. As an employer, you need to pay the higher of the average or the ordinary rate.
Lynley is an MYOB Certified Consultant & has been involved in training in New Zealand since 1985. She's written various accounting & MYOB workbooks including co-authoring “Bookkeeping for Dummies”. She has consulted on all versions of MYOB Accounting, Retail and Payroll over the past 18 years and has previously worked for MYOB. She currently consults to NZ businesses on all aspects of business systems - her mission for clients is for them to spend as little time as possible doing accounting!
