{"id":39333,"date":"2025-09-23T19:00:13","date_gmt":"2025-09-23T19:00:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/39333\/"},"modified":"2025-09-23T19:00:13","modified_gmt":"2025-09-23T19:00:13","slug":"whats-been-said-about-the-holidays-act-overhaul","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/39333\/","title":{"rendered":"What&#8217;s been said about the Holidays Act overhaul"},"content":{"rendered":"<p>The Government yesterday announced a sweeping overhaul of employment leave legislation, including changes to how annual and sick leave is calculated.<\/p>\n<p>Workplace Relations and Safety Minister Brooke van Velden <a href=\"https:\/\/www.1news.co.nz\/2025\/09\/23\/holidays-act-overhaul-changes-to-annual-leave-sick-pay-system\/\" target=\"_blank\" rel=\"nofollow noopener\">announced on Tuesday<\/a> that the Holidays Act would be repealed and replaced with a new Employment Leave Act.<\/p>\n<p>The changes aim to simplify leave entitlements by tying them directly to hours worked, allowing leave to accrue from day one, and introducing a single calculation method for all types of leave. Casual employees would also see their leave compensation increase from 8% to 12.5%, <a href=\"https:\/\/www.1news.co.nz\/2025\/09\/23\/holidays-act-overhaul-changes-to-annual-leave-sick-pay-system\/\" target=\"_blank\" rel=\"nofollow noopener\">among other changes<\/a>.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/minister-of-internal-affairs-brooke-van-velden-I2XEBUTRHVDWZHXMTZTKRRALJE.jpg\" alt=\"Minister of Internal Affairs Brooke van Velden.\" width=\"800\" height=\"450\" loading=\"eager\"\/><\/p>\n<p class=\"ImageMetadata__MetadataParagraph-sc-hi5x8q-0 iSFjhz image-metadata\">Minister of Internal Affairs Brooke van Velden. (Source: Getty)<\/p>\n<p>&#8220;Gone are the days of multiple, confusing calculations for leave payments,&#8221; van Velden said. &#8220;All workers, businesses, and their families will benefit from leave payments being simpler and more predictable.&#8221;<\/p>\n<p>Business groups welcome &#8216;long-overdue fix&#8217;<\/p>\n<p>The Employers and Manufacturers&#8217; Association (EMA) called the announcement a &#8220;long-overdue fix&#8221; to a system that had caused confusion and cost.<\/p>\n<p>EMA&#8217;s Alan McDonald said the new law would bring &#8220;much-needed clarity and simplicity&#8221; to leave entitlements.<\/p>\n<p>&#8220;Employers and employees should be able to more easily understand and apply the rules and that&#8217;s a win for everyone,&#8221; he said, adding that small- and medium-sized businesses would particularly benefit.<\/p>\n<p>Retail NZ also welcomed the move to hours-based accrual and proportional sick leave for part-time workers, saying it would &#8220;significantly reduce complexity and compliance costs&#8221;. <\/p>\n<p>Business Central agreed, adding that the &#8220;shift to an hours-based approach for calculating leave is particularly welcome, as it addresses one of the most persistent pain points for businesses&#8221;, acting chief executive Amanda Wood said.<\/p>\n<p>However, Retail NZ chief executive Carolyn Young warned that some proposals, such as the higher casual leave compensation and full-rate annual leave after parental leave, could drive up costs for businesses.<\/p>\n<p>Unions warn of &#8216;winners and losers&#8217;<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/sick-tired-man-person-exhaustion-illness-generic-MBR6PDTAMJEHBFXYPSBGJ5CLOM.jpg\" alt=\"A man at home with an illness (file image).\" width=\"800\" height=\"450\" loading=\"lazy\"\/><\/p>\n<p class=\"ImageMetadata__MetadataParagraph-sc-hi5x8q-0 iSFjhz image-metadata\">A man at home with an illness (file image). (Source: istock.com)<\/p>\n<p>The Council of Trade Unions (CTU) said the changes would create &#8220;winners and losers&#8221;. While it welcomed day-one access to sick, bereavement, and family violence leave, as well as fairer pay statements, it raised concerns about reduced sick leave for part-timers and the removal of commission and bonuses from holiday pay.<\/p>\n<p>CTU president Richard Wagstaff said: &#8220;It is good that the Act will be simplified, but that didn&#8217;t need to come at the expense of the hard-won entitlements of working people.&#8221;<\/p>\n<p>He warned the impacts would disproportionately affect M\u0101ori, Pasifika, women, and other vulnerable workers in part-time or insecure jobs.<\/p>\n<p>Workers First Union was concerned about the changes to sick leave, saying it would disproportionately affect working women and those with long-term health issues.<\/p>\n<p>&#8220;There is no defensible reason for a person working part-time to have access to less sick leave than someone working full-time,&#8221; said Dennis Maga. &#8220;No matter what hours you work, everyone is prone to getting sick, and especially those with kids who are more likely to be in part-time work.&#8221;<\/p>\n<p>Opposition slams changes to sick leave<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/09\/nz-teachers-hold-nationwide-strike-G4FLDLGI3RFRPD3YXUSHTGDQSE.jpg\" alt=\"Labour MP Jan Tinetti (file image).\" width=\"800\" height=\"533\" loading=\"lazy\"\/><\/p>\n<p class=\"ImageMetadata__MetadataParagraph-sc-hi5x8q-0 iSFjhz image-metadata\">Labour MP Jan Tinetti (file image). (Source: Getty)<\/p>\n<p>Labour accused the Government of breaking an election promise and &#8220;turning its back&#8221; on part-time workers. <\/p>\n<p>Workplace relations spokesperson Jan Tinetti said: &#8220;People don&#8217;t fall ill on a pro-rated schedule depending on how many hours they work. No one should be forced to work while sick or lose income because they are unwell.&#8221;<\/p>\n<p>The Green Party echoed those concerns, saying women would bear the brunt of the changes.<\/p>\n<p>&#8220;Getting sick doesn&#8217;t depend on whether you&#8217;re full- or part-time,&#8221; said Green MP Teanau Tuiono. &#8220;This move means yet more unpaid work for women already juggling jobs and caring responsibilities.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"The Government yesterday announced a sweeping overhaul of employment leave legislation, including changes to how annual and sick&hellip;\n","protected":false},"author":2,"featured_media":39334,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[138,1122,232,111,139,69,135],"class_list":["post-39333","post","type-post","status-publish","format-standard","has-post-thumbnail","category-jobs","tag-business","tag-employment","tag-jobs","tag-new-zealand","tag-newzealand","tag-nz","tag-politics"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/39333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=39333"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/39333\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/39334"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=39333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=39333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=39333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}