There is a risk that some people may not be able to afford to take leave when new rules take effect, unions and employment law experts say.
The Employment Leave Act has passed into law and will replace the Holidays Act in 2028.
It is designed to make leave rules clearer for employers and employees, and offer more certainty.
While much of the bill has been well received, including a change that will mean employees can take sick leave from their first day, and parents being able to access leave at their normal rate when they return from paid parental leave there are still concerns about some aspects.
Alison Maelzer, an employment law expert at Hesketh Henry, said people who worked a lot of overtime or whose pay included regular commission, could find their annual leave was paid at a much different rate to what they had been used to.
"Payments for annual leave will - unless parties agree otherwise - be at what amounts to the employee's lowest rate of pay.
"So at present, when you take annual leave, you are paid at the higher of your 'ordinary weekly pay' or your 'average weekly earnings'. Average weekly earnings is made up by calculating your gross earnings in the last 12 months, divided by 52. Your gross earnings will include any overtime you have been paid for, commission you've earned, and some bonus or incentive payments. These additional payments could amount to a significant portion of some employees' earnings in a year.
"Under the new system, the leave payment will be...
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