Heads up: Proposed changes to the Holidays Act
The Employment Leave Bill is currently making its way through Parliament and, if passed, will replace the Holidays Act 2003. The proposed legislation includes several changes to the way leave is taken and paid.
Leave entitlements under the new Bill…
Annual and sick leave would accrue in hours, starting from an employee’s first day of work
Employees could take part-day leave
Bereavement and family violence leave could become available earlier in employment.
Other proposed changes include…
- Simpler methods for calculating leave payments
- Clearer rules for determining public holiday entitlement
- New compensation rules for casual and additional workers
- Payslips becoming a legal requirement.
If passed, the new legislation is expected to include a two-year transition period, giving employers time to understand the changes and update their payroll processes.
For more information about the proposed changes, visit the MBIE website.
While there is no immediate action required, now is a good opportunity to review your payroll processes and ensure employee entitlements are being managed correctly. If you need help, get in touch.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.