Government unveils two-year transition period to give employers and payroll providers enough time to prepare
New Zealand's newly passed reforms on its leave system will take effect on 6 August 2028, the government announced, with detailed guidance to be provided in the coming months.
In an update on Friday, the government said the newly passed Employment Leave Act does not start until 6 August 2028 and told employers to continue following the Holidays Act.
"The law has not changed yet. You must follow the current rules in the Holidays Act until the new law starts on 6 August 2028," Employment NZ's website read.
"You cannot start following the new law early, even if you are ready."
The two-year transition period aims to give employers enough time to get ready for the changes, according to the government. This includes planning ahead, updating and testing systems, agreements, and policies, as well as engaging with employees.
"Some organisations may need to start preparing earlier than others, depending on the changes needed to their systems and processes," Employment NZ said.
"We'll provide detailed guidance in the coming months to help payroll providers, employers, and employees prepare for the changes."
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