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Tuesday, September 1, 2026

New employment law explained - RNZ

A major change to how leave is calculated in workplaces has become law.

The new legislation repeals the Holidays Act 2003, attempting to simplify the regime for both workers and employers.

It means annual and sick leave will now be accrued in hours, rather than days.

For additional work or casual hours, the leave will not accrue but employers pay a set 12.5 per cent compensation for those hours.

All employees, including casuals, will be able to access annual, sick, bereavement, and family violence leave from the first day of work.

Employment law expert from Simpson Grierson, Bronwyn Heenan, explains the key changes.



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