Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

Skill Check 8 – 8%, Extended from Termination Date and Alternative Holiday

1. On termination after 12 months, how are the Holidays Act calculations applied, choose the correct statement:

(a) 8% from start date to end date.

(b) Greater of AWE and OWP + notice period based on 8%.

(c) The greater AWE and OWP and 8% from the last entitlement date, with the value of AWE and OWP added to the 8% gross.

2. On termination, what extends forward from the employee termination date?

(a) Annual holiday accrual being paid out on termination

(b) Annual holiday entitlement and accrual paid out on termination.

(c) The annual holiday entitlement paid out upon termination.

(d) Extends forward based on the employee pay period.

3. Is an alternative holiday paid out on termination part of the 8% on termination?

Yes / No

4. What is the calculation used for an alternative holiday on termination? Select the correct statement.

(a) The greater of AWE and OWP

(b) RDP or if the day cannot be determined ADP for their last day of employment.

(c) 8% for the final day of employment.

(d) An agreed rate between the employer and employee.

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

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