Holidays Act Review

A Holidays Act Working Group has been established by the Government to carry out a full review of the Holidays Act.

The Group will be made up of employer, worker and government representatives and will be chaired by Gordon Anderson, a law professor at Victoria University with extensive experience in employment law.

The review has been commissioned by Government following a joint request from unions and employers.
The Working Group will focus particularly on the provisions of, and payment for, holidays and leave entitlements, but it may also consider any other issues that arise in the course of its work.

The Group will report back within 12 months with recommendations to government on options for a clear and transparent set of rules for providing entitlements to, and payment for, holidays and leave that can be readily implemented in a payroll system and is applicable to an increasingly diverse range of working and pay arrangements.

The review will not consider the issue of remediation of historical underpayments of holiday and leave pay. A new regime is likely to be two to three years away. In the meantime, employers retain an obligation to remediate workers for historical underpayments of holiday and leave pay, and to pay employees correctly.

The Labour Inspectorate will continue to support employers to remediate employees for historical underpayments (such as through their recently published practice note on estimating arrears), and will continue with their programme of audits and investigations. More information is available on the employment.govt.nz website

Read the cabinet paper [PDF 102KB]