Bereavement is a natural part of life, and unfortunately, at some point, most of us will experience the loss of a loved one. It can be an incredibly difficult time, and the last thing anyone wants to think about is work.
As an employer, it's important to know your employees' needs during such times and provide them with the support they require.
One way to do this is by offering bereavement leave, a period of paid leave that allows employees to take time off work to grieve and attend to their personal affairs.
In New Zealand, there are specific regulations around bereavement leave, including the number of days an employee is entitled to.
In this blog, we'll explore what bereavement leave is in NZ and how many days your employees are entitled to, so you can ensure you provide the right support for your staff during difficult times.
What is Bereavement Leave?
Bereavement leave, also known as compassionate or grievance leave, allows employees to take time off from work to deal with the death of a family member or someone close to them.
The purpose of bereavement leave is to allow employees to grieve and make funeral arrangements without the added stress of work. In addition, it is a form of support employers can offer their employees during difficult times.
Bereavement leave is legislated in many countries, including New Zealand.
How Many Bereavement Leave Days Should Your Employee Get?
In New Zealand, the Holidays Act provides for bereavement leave, which allows employees to take time off from work to deal with the death of a family member or someone close to them.
The Act provides for two levels of entitlement:
- Three days for a close family member
- One day for any other person (if the employer agrees)
However, there is no maximum amount of days, and employers should evaluate each case individually.
Factors to consider when evaluating a request for bereavement leave may include the employee's relationship with the deceased, their responsibility for arrangements relating to the death, and any cultural responsibilities they may have.
Unlike sick leave, your employee doesn’t have to provide proof of death to qualify for the leave, although employers can request some evidence to ensure that they are using the leave appropriately, provided you request it.
You’ll want to have clear policies in place regarding bereavement leave to ensure consistency and fairness.
How Does the Work Test Apply?
If your employee hasn’t been working continuously for six months, they could still qualify for bereavement leave if they have at least averaged 10 hours per week or 40 hours every month for a period of six months.
Example
Samantha has been working for your company for seven months, but for the first three months, she was working two part-time jobs at the same time.
When her grandfather passes away suddenly, Samantha wants to take time off to attend the funeral and grieve with her family.
She knows she does not meet the eligibility criteria for bereavement leave under the Holidays Act, as she has not been continuously employed with the same employer for six months.
However, explain that she may still be entitled to bereavement leave if she has averaged at least 10 hours per week or 40 hours per month over a six-month period.
You check her employment records and confirm that she has been working an average of 15 hours per week for the past six months - which means that she meets the eligibility criteria for bereavement leave and is entitled to take at least three days off to attend her grandfather's funeral.
As long as the above criteria are met, your employees can accumulate bereavement leave every 12 months and can take leave in the following circumstances:
- The death of an immediate family member, including parents, children, partners, spouses, grandparents, grandchildren, brothers, sisters, or parents-in-law
- In the event of a miscarriage or stillbirth.
- If another person has a miscarriage or stillbirth, bereavement leave may be granted to the employee if they are the person's partner, former partner but a biological parent or primary carer
What Happens if Your Employee Doesn’t Meet the Criteria?
If an employee doesn't meet the criteria for bereavement leave, they may need to take annual leave instead.
In some cases, you may want to consider granting bereavement leave in advance and offer flexible work arrangements to help employees deal with their situation.
You should be sensitive to the needs of your employees during this difficult time and provide appropriate support and resources where possible.
You should pay according to your employee’s relevant daily pay or, if this isn't possible or practical, then you can calculate their pay using the average daily pay method.
For more on these calculation methods, check out our Guide on How to Calculate Annual Leave in New Zealand, which details exactly how you should calculate your employee’s bereavement leave.
You should note that you must make payment for bereavement leave in the normal pay cycle and shouldn’t delay or postpone it for any reason. This means employers should factor in the cost of bereavement leave when calculating their overall payroll expenses and budget accordingly.
Failure to pay an employee for bereavement leave can result in penalties and legal action, so employers must comply with their obligations.
Consider Cloud Payroll to Help You Keep Track of Your Bereavement Leave Obligations
This saves time, reduces the risk of errors, and ensures compliance with the relevant legislation and employment agreements.
Additionally, cloud payroll software can provide real-time reporting and analytics, giving you greater visibility and control over payroll processes.
With cloud payroll software, such as Employment Hero, you can essentially reduce administrative burdens associated with managing bereavement leave and focus on other important aspects of your business.
As an employer, you should be aware of the entitlements and obligations around bereavement leave in New Zealand to ensure that you meet legal requirements and support your employees during times of grief.
Keeping track of these entitlements and calculating pay for this period can be a headache, but cloud payroll software can help to streamline this process and ensure accuracy.
If you're considering implementing cloud payroll software or need help with your payroll needs, consider contacting Pay Cat, who can assist with implementation and provide outsourced payroll services.
Remember to prioritise the well-being of your employees and provide them with the support they need during times of grief.
