Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

Skill Check 7 – Holidays Act Sections 28, 23, 24 & 25

1. Under the Holidays Act, is the 8% “Pay as you go” the default setting for paying leave? Yes / No 2. On termination, if an employee was paid 8% “pay as you go” how is leave calculated in the termination pay, select the correct statement:

(a) From the employee's start to end date, gross earnings are 8% less any annual leave taken in advance.

(b) 8% of gross for the final period of employment (includes taxable payments made on termination, except non discretionary).

(c) The greater of AWE and OWP.

(d) Notice period + 8% for the final period of employment.

3. Can annual leave paid in advance be deducted from a termination pay? Yes / No

4. Annual leave entitlement paid out on termination uses the following calculations, which is the correct option:

(a) 8% of gross earnings less any annual leave taken in advance.

(b) The greater of average weekly earnings and ordinary weekly pay.

(c) 4/52 for every hour worked x 8%.

(d) The greater of average weekly earnings and ordinary weekly pay + 8%

5. On termination after 12 months, the 8% is based on what period?

(a) From the original start date to end date.

(b) From the last pay period to end date.

(c) From the last entitlement date to the end date.

© New Zealand Payroll Practitioners Association, Mar 2026, Ver 9

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