If an employer dismisses an employee (for any reason) and then rehires them within one month, the employee’s employment is generally treated as being continuous for calculating sick leave, bereavement leave, public holidays and annual holidays, This is unless a Labour Inspector makes a decision that the employer acted in good faith rather than to avoid their holidays and leave obligations.

For example, Ata is dismissed from her job for reason of redundancy on 24 December and her employer rehires her on 5 January because another employee resigned and there is a vacancy. Ata’s employment is treated as being continuous for leave and holidays and her employer needs to work out her entitlement to the Christmas and New Year public holidays (depending on Ata’s work pattern).

This doesn’t apply to employees who resign and are rehired, or whose genuine fixed-term employment agreement comes to an end and another genuine fixed-term agreement begins within one month (unless the employee and employer agree to this as part of the employment agreement).

Reference: https://www.employment.govt.nz/leave-and-holidays/minimum-leave-and-holidays-entitlements/

Penny Varley

Payroll Administrator