This edition of the Echo covers the Employment Leave Bill and a medical incapacity case emphasising the importance of following proper process. We also explore the recognition of Pasifika values in employment law, and consider the implications of the Gibson conviction for PCBUs and officers going forward.
Employment Leave Bill – a major overhaul
The Government is proposing to replace the Holidays Act 2003 with the Employment Leave Bill, which passed its first reading on 12 March 2026. Notoriously complex, the Holidays Act has long been criticised for provisions that are unclear, leading to widespread non-compliance and employees not always receiving their correct entitlements. The Government views the Bill to be the solution to these problems.
While employers, employees and payroll administrators throughout Aotearoa are likely to be relieved by the prospect of a replacement leave scheme, the question remains whether the Bill will deliver the long-awaited overhaul needed. Below, we consider the key proposed changes.
Distinction between types of hours
The most significant departure from the current Act is the introduction of three defined categories of working hours that underpin the entire leave framework.
Standard hours are the hours an employee is required to work under their employment agreement and for which the employer must pay the employee, regardless of whether the employer in fact requires the employee to work those hours. Leave accrual and the...
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