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ARTICLE · 18 MAY 2021

Holidays Act update

The Holidays Act Taskforce has recommended changes recommended to simplify leave payments.

New ZealandEmployment and HR

Government has announced that it has accepted all the Holidays Act Taskforce's recommendations and expects to introduce legislation in 2022.  It is universally accepted that most employers have experienced some difficulty in calculating accrual and payment of employee holiday entitlements.  In recent years, many employers have been required to recalculate employee holiday entitlements and there have been significant pay-outs to correct errors.  With that in mind, the Taskforce sought to make calculating leave payments an easy and simple process, by providing clear rules that employees and employers can use to determine, calculate, and pay leave entitlement accurately.

The Taskforce's key recommendations are to:

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