Holidays Act review
A Holidays Act Taskforce has been established by the Government to carry out a full review of the Holidays Act.
The Taskforce, formed in May 2018, is made up of employer, worker and government representatives and chaired by Gordon Anderson, a law professor at Victoria University with extensive experience in employment law. The review was commissioned by the Government following a joint request from unions and employers.
The Holidays Act Taskforce has released an Issues Paper. This sets out its understanding of the key issues employers, employees and payroll providers face in trying to implement the Act.
The Taskforce is focusing 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.
It 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 will be capable of being implemented in a payroll system and 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.
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.
If you have questions about the review, or wish to contact the Working Group, you can do so at Holidays.Act.Review@mbie.govt.nz.
This sets out the Taskforce's understanding of the key issues employers, employees and payroll providers face in trying to implement the Act. Read the issues paper and provide a submission.