The Employment Leave Bill puts forward a simpler and more workable replacement for the Holidays Act 2003. It proposes changes to how the following leave will be earned, taken and paid:
- annual leave
- sick leave
- family violence leave
- bereavement leave, and
- alternative leave.
The Bill is expected to pass this year. The new legislation will take effect 2 years later, in 2028. This gives employers and payroll providers time to update their systems and get everything ready.
The law has not changed yet
Employers must follow the current rules in the Holidays Act until the new legislation takes effect. This means employers must:
- provide the correct entitlements and payments to employees, and
- pay employees for any historical underpayments.
The information on the rest of this website reflects the current law, and resources are available to help employers address any Holidays Act non-compliance.
Preparing for the changes
The Bill could change through the parliamentary process. However, it’s a good idea for payroll providers and employers to learn about the proposed changes and start thinking about how they can prepare.
To find out more, including how to provide feedback on the proposals in the Bill, visit:
Holidays Act reform – Ministry of Business, Innovation & Employment(external link)
Our service centre does not have information to share about the proposed changes at this stage.
Check back for updates
Once the Bill has passed, we’ll update this website with guidance for payroll providers, employers and employees to help transition over to the new rules.
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