New Zealand’s leave laws are finally being updated. The outdated Holidays Act 2003 will be
replaced by the proposed Employment Leave Act, making entitlements clearer and easier to
manage.


Some of the key changes include:

  • Leave entitlements starting from day one of employment
  • Hours-based accrual for annual and sick leave
  • A new working day test for public holidays
  • More flexibility to cash up leave balances (up to 25% annually)
  • Casual employees receiving 12.5% leave compensation per hour worked (applied to
    gross earnings)
  • Parents returning from parental leave paid full rates for annual leave

The Bill is expected to pass before the 2026 election, with a 24-month implementation
period. If clients have questions, our People & Culture team is here to help!
Kerryn Strong
People & Culture Consultant
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Kylee Dale
HR Manager
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Auckland Accounting and Tax Services

People and Culture