Calculation Of Holiday Pay

Northern Advocate, 26 June 1946, Page 4

Calculation Of Holiday Pay

(P.A.t WELLINGTON, This Day The Court of Appeal yesterday commenced the hearing of an appeal from a decision of the Supreme Court in Auckland on the question of holiday pay under the Annual Holidays Act. 1944. The appellant is James Raymond Moon, journeyman baker, and the respondent his employer, Kent's Bakeries Ltd., of Newmarket, Auckland.

'The parties are agreed that Moon’s rights as m annual holidays are governed by the Annual Holidays Act

:1 no 1 hat under section three Moon is chilled to an annual holiday of two weeks on ‘ordinary pay,” which expression is defined by the Act, so that Moon is entitled during two weeks’ holiday to receive remuneration for ;he “normal weekly number of hours of work calculated at the ordinary time rate of pay.” The respondent’s employment is governed by the bakers and pastrycooks’ award, 1938, and the dispute arose as to what was the "ordinary time rate of pay" under the award. EMPLOYER’S CONTENTION The contention for the employer is that in calculating holiday pay it should disregard not only overtime payments, but also extra payments of, 2/- an hour for starting work before the prescribed hours and that Moon's “ordinary pay” should be calculated by multiplying by 44 the hourly rate under the award for a journeyman baker working during the prescribed ho.urs after increasing the rate by the cost of living bonuses. The worker contends that the proper method of calculation is to add up what the worker earned throughout the year—(l) for working during the prescribed hours without overtime; (2) for payment at 2/- an hour fee starting early; (3) so much of iho cost of living bonuses applicable to items (1) and (2). This total should then be averaged to get the weekly figure.

The judgment of an Auckland magistrate in favour of the worker for £4 arrears of wages and costs was entered in September, 1945, but this decision was reversed by the Supreme Court on appeal, and the worker is now appealing against the Supreme Court judgment.