This omnibus Government bill replaces the Holidays Act 2003 with a new framework for leave entitlements intended to be simpler and clearer, providing certainty to employees and employers about their entitlements and obligations. It is still before Parliament.
A Government bill that replaces the Holidays Act 2003 with a new framework for work leave — annual holidays, sick leave, bereavement and family-violence leave. The Holidays Act is widely seen as complex and error-prone, especially for people with variable hours, and has caused years of payroll miscalculations. The new rules would change how leave is earned: annual and sick leave would build up gradually from an employee's first day, rather than only after a set waiting period.
It was led by ACT's Workplace Relations Minister, Brooke van Velden, and provides for a transition period of around two years before employers must switch systems. Casual workers would generally receive a rolled-up 'pay-as-you-go' leave payment instead of accruing leave. Supporters say it is simpler and fairer for variable-hours staff. Critics, including Labour, say some lower-paid or part-time workers could end up worse off.
See the Parliament.nz ↗ site for the full bill.