Holidays Act Review
A government-appointed Holidays Act Working Group is carrying out a full review of the Holidays Act and will report back with recommendations in 12 months.
The Working Group comprises employer, worker and government representatives and is chaired by Gordon Anderson, a law professor at Victoria University with extensive experience in employment law.
The review of the Act has been commissioned by the Government following a joint request from unions and employers.
The scope of the review
The Working Group will focus on the provisions of, and payment for, holidays and leave entitlements. It may also consider any other issues that arise in the course of its work.
The Working Group will 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 review will not 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 several years away. Meanwhile, 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 its recently published practice note on estimating arrears).
The Inspectorate will also continue with its programme of audits and investigations.
Cabinet paper terms of reference
The Minister for Workplace Relations and Safety has made a minor amendment to paragraph 9 of the terms of reference. This is consistent with recommendation 8 of the Holidays Act Review Cabinet Paper.
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 is considering feedback from stakeholders on the issues paper as it develops its final recommendations.
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. The Taskforce expects to make its final recommendations to the Minister by the end of July 2019.
Contact the Working Group
If you have questions about the review or wish to contact the Working Group, email Holidays.Act.Review@mbie.govt.nz