Holidays Act replacement

The story so far
The Government plans to overhaul the Holidays Act to simplify how annual and sick leave is accrued, aiming to make the system easier for employers and employees to manage.23 Sep 2025 Workplace Relations and Safety Minister Brooke van Velden has announced plans to repeal the Holidays Act, citing payroll errors and complexity, and to introduce an Employment Leave Act.23, 24 Sep 2025 Under the proposed changes, workers would accrue annual and sick leave based on hours worked from their first day, with pro-rating used to calculate entitlements.23, 24 Sep 2025 Casual workers would instead receive a 12.5% pay increase rather than leave entitlements, and part-time workers would lose sick leave entitlements.23 Sep 2025 Business groups have welcomed the clarity, while unions and opposition parties have raised concerns about workers' rights.24 Sep 2025
Latest
Unions and opposition parties have raised concerns about the proposed changes to workers' rights.24 Sep 2025
Key moments
- Government announces reform to simplify annual and sick leave accrual.

- Minister announces plan to scrap Holidays Act, with 12.5% casual pay increase.

- Plan confirmed as Employment Leave Act replacement; business welcomes clarity.

- Unions and opposition parties raise concerns about workers' rights.

Written from the stories below; each sentence links to its sources.
Key people and organisations
Brooke van Velden ACT MP, Internal Affairs Minister
Coverage
1News4
Stuff3
Otago Daily Times2
The Post1
NZ Herald1
The Press1
RNZ1
Newsroom1