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public holiday exchange case goes to supreme court

The Airline Pilots Association has gained leave to appeal the ruling by the Court of Appeal regarding the transfer of public holidays to another day. In Air NZ Ltd v New Zealand Airline Pilots Association of Industrial Workers Union Inc the Court of Appeal examined a collective employment agreement provision that transferred all of the 11 public holiday provided by the Holidays Act to 11 general days’ leave that were additional to annual leave. As a result when a pilot was rostered to work a public holiday no penal rates were paid. But the Court held that public holidays must be transferred to specified days to comply with minimum statutory requirements under s 44 of the Holidays Act 2003 and therefore the collective agreement provision was in conflict with the Act.

Leave to appeal this ruling has been granted to the pilots union and the Supreme Court will address the following questions:

  1. Can an employee’s entitlements to a public holiday be transferred by agreement to another day (which the majority in the Court of Appeal called the "exchange day")?
  2. If so, does the exchange day have to be identified or capable of identification with certainty in the employment agreement?
  3. In light of the answers to the first two questions, did the Collective Employment Agreement which is the subject of the dispute validly transfer the entitlements?

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