Holidays Act Review

The Government established a Taskforce to review and provide recommendations to improve the Holidays Act.

The Taskforce has reported back to the Minister for Workplace Relations and Safety, who is now considering the recommendations.

The Taskforce included employer, worker and government representatives and was chaired by Gordon Anderson, a law professor at Victoria University with extensive experience in employment law.

The review of the Act was commissioned by the Government following a joint request from unions and employers.

The scope of the review

The scope of the Taskforce’s review included the provisions of, and payment for, holidays and leave entitlements.

The Taskforce was asked to make recommendations on options for a clear and transparent set of rules for providing entitlements to, and payment for, holidays and leave. The rules would need to be able to be readily implemented in a payroll system and apply to an increasingly diverse range of working and pay arrangements.

The Taskforce was not asked to consider the issue of remediation of historical underpayments of holiday and leave pay.

Employers obligations to remediate remain

A new regime is likely to be a minimum of 12 to 18 months away from being implemented. Meanwhile, employers retain an obligation to remediate workers for historical underpayments of holiday and leave pay, and to pay employees correctly.

The Labour Inspectorate continues to support employers to remediate employees for historical underpayments (such as through its practice note on estimating arrears).

The Inspectorate is also continuing its programme of audits and investigations.

Read more about the Labour Inspectorate addressing Holidays Act non compliance(external link)

The Taskforce’s Terms of Reference

The Holidays Act Review Cabinet Paper [PDF, 102 KB]

The Minister for Workplace Relations and Safety made a minor amendment to paragraph 9 of the terms of reference.

The updated Holidays Act Review Terms of Reference [PDF, 206 KB]

Holidays Act: Issues paper

In August 2018, the Taskforce published an issues paper that set out its understanding of the key issues that employers, employees, and payroll providers face in trying to implement the Holidays Act 2003. The Taskforce considered feedback from stakeholders on the issues paper as it developed its final recommendations.

Holidays Act 2003 review: Issues paper [PDF, 563 KB]

Interim report from Holidays Act Taskforce

In December 2018 the Taskforce provided an interim report to the Minister for Workplace Relations and Safety on progress with the review of the Holidays Act.

Holiday Act Taskforce Interim Report [PDF, 1018 KB]

Contact the review team

If you have questions about the review or the Taskforce, email Holidays.Act.Review@mbie.govt.nz

Last updated: 12 November 2019