Handling bereavement leave is a delicate but essential part of being an employer. When an employee experiences a loss, providing support while ensuring all legal obligations are met is crucial. For New Zealand employers, understanding the rules around bereavement leave is key to managing these sensitive situations both compassionately and legally. 

Our guide provides a clear overview of your responsibilities under the Holidays Act 2003, from understanding eligibility to calculating pay. We’ll outline what you need to know to support your team members through difficult times.

Download the guide by filling in the form on the right.

How to calculate bereavement leave pay

When an employee takes bereavement leave, they are entitled to be paid for what would have been their normal working day. The payment calculation method depends on their work patterns.

For employees with consistent hours, you’ll use Relevant Daily Pay (RDP). This is the amount the employee would have earned if they had worked that day, including any regular overtime, allowances or commission.

For employees whose hours are so varied that it’s not possible to determine RDP, you must use Average Daily Pay (ADP). 

Check out our factsheet for more information on the different leave payment calculations. 

Payment for part-time and irregular hour employees

Calculating bereavement leave pay for employees with variable hours requires using the ADP method. This ensures they receive a fair payment that reflects their average earnings, even if they weren’t scheduled to work on the specific day the leave is taken.

For example, if a casual employee works different days and hours each week, their ADP provides a consistent way to calculate their entitlement based on their recent earning history.

When payment is not required

An employee is entitled to paid bereavement leave after they have worked for you continuously for six months. If they have not yet reached this milestone, they can still request unpaid leave, which you must consider in good faith.

Payment is also not required if the employee would not have otherwise worked on that day.

Understanding timing and flexibility of leave

Bereavement leave is designed to give employees time to grieve and manage responsibilities related to a loss. A compassionate approach often involves being flexible with how and when this leave is taken.

When bereavement leave can be taken

Employees can take bereavement leave at any time and for any purpose relating to the death. It does not need to be taken immediately after the death or on consecutive days. For example, an employee might take one day for the funeral and save the remaining days for a memorial service at a later date. Cultural practices, such as tangihanga, may also require leave to be taken in a specific way and employers should be mindful of these needs.

Taking bereavement leave during scheduled annual holidays

If a bereavement occurs while an employee is on annual leave, they can request to have those days reclassified as bereavement leave. This means the annual leave days are credited back to their balance. 

Record keeping and administration

When it comes to leave, documentation is key. You need to be able to prove that you’ve recorded the right information, have tracked any time taken on leave and have paid everything correctly. It can also be helpful to have an established policy on bereavement leave that can be shared across the company, giving everyone clear guidelines on its use. 

Employer obligations for tracking bereavement leave

You must keep accurate records of all leave taken by your employees, including bereavement leave, for a minimum of seven years. This ensures you can track balances and know when an employee has used their entitlement for the year. It’s important to note that bereavement leave does not accumulate and resets each year after the employee’s work anniversary.

Documentation requirements for payroll

For each pay run, you need to record the type of leave taken and the amount paid. You also need to submit this to Inland Revenue as part of payday filing. 

While you can ask for proof of a bereavement, such as a death certificate or funeral notice, this request should only be made if you have reasonable grounds to do so. It’s best practice to handle these requests with sensitivity.

The benefits of a leave management system

Using Employment Hero’s Employment Operating System can simplify these processes significantly. The platform automates calculations for RDP and ADP, tracks leave balances in real-time and is updated regularly so that entitlements are in line with the Holidays Act. This reduces administrative burden and minimises the risk of errors.

A bereavement leave workplace policy

All employees in a business should be aware of their entitlements in the event of a bereavement. That’s why it’s key to have a policy on bereavement leave that everyone can be aware of and acknowledge. It’s an easy way to give employees access to information that directly affects them.

The policy should include:

• Number of working days provided as bereavement leave
• The eligibility period of when the leave can be taken
• Whether an extension to bereavement leave is paid or unpaid
• How an ‘immediate family member’ is defined (spouse, parents, siblings, etc)

Create your bereavement leave policy with the help of our leave policy template.

How bereavement leave interacts with public holidays

If a day of bereavement leave falls on a public holiday and it’s a day the employee would have normally worked, the day is treated as a paid, unworked public holiday. The employee should be paid their Relevant Daily Pay and the day isn’t deducted from their bereavement leave balance.

Download our comprehensive bereavement leave guide

Navigating bereavement leave can be a challenge. You’re supporting your employee while also ensuring that you’re meeting your legal obligations as an employer. Ensuring you have clear processes in place not only supports compliance but also shows your team that you support them during life’s most difficult moments.

To find out how to manage bereavement leave effectively, download our comprehensive guide by filling in the form on the right.

The information in this article is current as at 9 October 2025, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.