The Employment Leave Act will be a major change to how leave works. It's designed to make leave rules easier for employers and employees to understand and follow.
What will change in 2028
The Employment Leave Act will change how leave is earned, taken and paid, including:
- annual leave
- sick leave
- family violence leave
- bereavement leave
- public holidays, and
- alternative leave.
The new rules will be the minimum leave entitlements that employers must provide by law. Employers and employees can agree to better leave and pay than these minimum entitlements.
There is information about these changes on the Ministry of Business, Innovation and Employment (MBIE) website.
We'll provide guidance soon
The new law does not start until 6 August 2028. This gives employers and payroll providers 2 years to get ready for the changes. During this time, they will need to:
- plan ahead
- update and test systems, agreements and policies, and
- engage with employees.
Some organisations may need to start preparing earlier than others, depending on the changes needed to their systems and processes.
We'll provide detailed guidance in the coming months to help payroll providers, employers and employees prepare for the changes.
Timeline for Employment Leave Act guidance and resources
We also have a suggested preparation planning guide that shows when employers and employees can plan, prepare and take action before the new law starts.
Getting ready for the changes
Find out what you can start thinking about now to get ready for the changes.
How payroll software providers can get ready for the changes