The Holidays Act Overhaul – What Employers Need to Know
The Holidays Act Overhaul – What Employers Need to Know Over the past few years, the Holidays Act has been under constant scrutiny for being complex and difficult to apply. Many New Zealand employers have struggled to stay compliant, often through no fault of their own—because the current calculations are confusing and inconsistent. Now the Government has announced the biggest shake-up of the Holidays Act since 2003 . While the reforms aren’t yet law, they signal major change for every employer once the new legislation is introduced. Why the overhaul? The current Act has long been criticised for inconsistency. Each type of leave—annual, sick, bereavement, and public holidays—is calculated in different ways, depending on employment type, hours worked, and pay structure. The goal of the Holidays Act reform is to simplify this system so both employers and employees can understand and apply it correctly. What’s proposed According to the Ministry of Business...