| 23 November 2021

Discretionary payments find favour with the Court of Appeal, 23 November 2021

The Court of Appeal has released its much-anticipated decision in Metropolitan Glass & Glazing Ltd v Labour
Inspector [2021] NZCA 560. The Court has overturned the Employment Court’s decision and found that the
payments made under Metropolitan Glass & Glazing Ltd’s (Metroglass) short-term incentive bonus scheme
did not need to be included in “gross earnings”, as defined under s 14 of the Holidays Act 2003 (Holidays
Act). This means that the payments would not affect or increase holiday pay.


By Stephanie Bode, Solicitor