New Zealand has approved a major overhaul of its employment leave laws after the Employment Leave Bill passed its third and final reading in Parliament, introducing a simpler system for calculating leave entitlements and modernising rules that have frustrated workers and employers for years.
Workplace Relations and Safety Minister Brooke van Velden said the legislation replaces the long-criticised Holidays Act with a more straightforward framework that will make leave calculations easier to understand while giving both employees and businesses greater confidence that leave is being paid correctly.
The biggest change is the introduction of an hours-based accrual system, allowing annual and sick leave to accumulate in direct proportion to an employee's standard working hours. The new approach responds to long-standing calls from businesses, payroll providers and workers for a simpler method of calculating leave entitlements, particularly for employees with varying work patterns.
Van Velden said previous governments had acknowledged the need for reform but had been unable to deliver a replacement. She said the new legislation finally provides the certainty employers and employees have been seeking.
The Employment Leave Bill introduces several changes designed to improve transparency and make leave entitlements easier to manage.
Employees will be able to access annual leave, sick leave,...
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