Holidays Act replacement

3 stories · since September 2025 Quiet since 24 Sep 2025

Photo: 1News (opens in new tab) · Government to replace Holidays Act with new leave system

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

  1. Government announces reform to simplify annual and sick leave accrual.
  2. Minister announces plan to scrap Holidays Act, with 12.5% casual pay increase.
  3. Plan confirmed as Employment Leave Act replacement; business welcomes clarity.
  4. Unions and opposition parties raise concerns about workers' rights.

Written from the stories below; each sentence links to its sources.

Key people and organisations

All stories

September 2025

Coverage

  • 1News1News4
  • StuffStuff3
  • Otago Daily TimesOtago Daily Times2
  • The PostThe Post1
  • NZ HeraldNZ Herald1
  • The PressThe Press1
  • RNZRNZ1
  • NewsroomNewsroom1