{"id":30593,"date":"2023-08-09T10:31:18","date_gmt":"2023-08-09T00:31:18","guid":{"rendered":"https:\/\/employmenthero.com\/nz\/blog\/no-changes-to-the-holidays-act-before-the-nz-general-election\/"},"modified":"2025-06-17T04:52:25","modified_gmt":"2025-06-17T04:52:25","slug":"no-changes-to-the-holidays-act-before-the-nz-general-election","status":"publish","type":"post","link":"https:\/\/employmenthero.com\/nz\/blog\/no-changes-to-the-holidays-act-before-the-nz-general-election\/","title":{"rendered":"No changes to the Holidays Act before the NZ general election"},"content":{"rendered":"\n<div class=\"wp-block-group alignfull blog-template-header has-neutral-100-background-color has-background has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"padding-bottom:var(--wp--preset--spacing--16)\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\"><div style=\"--bb--crumb-gap:.4em;\" 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 <\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-5 wp-block-group-is-layout-constrained\"><h1 class=\"blog-template-title wp-block-post-title\">No changes to the Holidays Act before the NZ general election<\/h1><\/div>\n\n\n\n<p class=\"blog-template-sub-title\" style=\"padding-top:var(--wp--preset--spacing--9);padding-bottom:var(--wp--preset--spacing--9);line-height:1.5\">\n    It has been confirmed by MBIE that the much-anticipated amendments are still in the works.\n<\/p>\n\n\n\n<div class=\"wp-block-group blog-template-meta-row is-layout-flex wp-container-core-group-is-layout-8 wp-block-group-is-layout-flex\">\n<div class=\"wp-block-query wp-block-hosts-query has-global-padding is-content-justification-left is-layout-constrained wp-container-core-query-is-layout-1 wp-block-query-is-layout-constrained\"><ul data-wp-interactive=\"eh-hosts\" class=\"wp-block-post-template is-layout-flow wp-container-core-post-template-is-layout-1 wp-block-post-template-is-layout-flow\"><li data-host-index=\"0\" data-wp-on--click=\"actions.openDetail\" class=\"wp-block-post post-20949 hosts type-hosts status-publish has-post-thumbnail hentry\">\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-7 wp-block-group-is-layout-flex\"><figure style=\"width:52px;height:52px;\" class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"120\" height=\"120\" src=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-120x120.png\" class=\"attachment-host_thumbnail size-host_thumbnail wp-post-image\" alt=\"\" style=\"border-radius:60px;height:52px;object-fit:cover;\" srcset=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-120x120.png 120w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-300x300.png 300w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-150x150.png 150w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-240x240.png 240w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-54x54.png 54w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-108x108.png 108w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-390x390.png 390w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-200x200.png 200w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-400x400.png 400w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-216x216.png 216w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-432x432.png 432w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-112x112.png 112w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-224x224.png 224w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-142x142.png 142w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9-284x284.png 284w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/06\/Untitled-design-9.png 625w\" sizes=\"auto, (max-width: 120px) 100vw, 120px\" \/><\/figure>\n\n\n<div class=\"wp-block-group has-sm-font-size is-vertical is-content-justification-center is-layout-flex wp-container-core-group-is-layout-6 wp-block-group-is-layout-flex\"><h6 style=\"line-height:1.3; border-right-width:1px;border-right-color:var(--wp--preset--color--black); padding-right:var(--wp--preset--spacing--2);\" class=\"has-text-align-center has-link-color wp-elements-1e20e747939e3458765ab321928f59b7 wp-block-post-title has-text-color has-violet-500-color has-sm-font-size\">Jen Denny<\/h6><\/div>\n<\/div>\n\n<\/li><\/ul><\/div>\n\n\n\n<p class=\"has-text-align-center has-sm-font-size\" style=\"border-left-style:none;border-left-width:0px;padding-left:0\">Published<\/p>\n\n\n<div class=\"wp-block-post-date has-sm-font-size\"><time datetime=\"2023-08-09T10:31:18+00:00\">Aug 9, 2023<\/time><\/div>\n\n\n<p class=\"has-text-align-center has-sm-font-size\" style=\"border-left-color:var(--wp--preset--color--neutral-700);border-left-width:1px;padding-left:var(--wp--preset--spacing--2)\">Updated<\/p>\n\n\n<div class=\"wp-block-post-date__modified-date wp-block-post-date has-sm-font-size\"><time datetime=\"2025-06-17T04:52:25+00:00\">Jun 17, 2025<\/time><\/div>\n\n\n<p class=\"has-sm-font-size\" style=\"border-left-color:var(--wp--preset--color--neutral-700);border-left-width:1px;padding-left:var(--wp--preset--spacing--2)\">6 mins read<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull blog-image-container has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<figure class=\"wp-block-image aligncenter size-large is-resized blog-template-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"601\" src=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/08\/Blog-header-1-1-1-1024x601.png\" alt=\"The Beehive building in Wellington, New Zealand, under a clear blue sky, surrounded by city buildings and greenery.\" class=\"wp-image-41532\" style=\"object-fit:cover;width:864px;height:561px\" srcset=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/08\/Blog-header-1-1-1-1024x601.png 1024w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/08\/Blog-header-1-1-1-300x176.png 300w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/08\/Blog-header-1-1-1-768x451.png 768w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/08\/Blog-header-1-1-1-1536x901.png 1536w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/08\/Blog-header-1-1-1-864x508.png 864w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/08\/Blog-header-1-1-1-440x258.png 440w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2023\/08\/Blog-header-1-1-1.png 1728w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n\n<div style=\"height:66px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:30%\">\n<div class=\"wp-block-group sticky-side-panel is-vertical is-content-justification-stretch is-layout-flex wp-container-core-group-is-layout-12 wp-block-group-is-layout-flex wp-container-2 is-position-sticky\">\n<p class=\"has-lg-font-size\" style=\"border-bottom-color:var(--wp--preset--color--neutral-200);border-bottom-width:0.1rem;padding-top:var(--wp--preset--spacing--4);padding-bottom:var(--wp--preset--spacing--4)\"><strong>Contents<\/strong><\/p>\n\n\n\n<div class=\"content-single-table-content\"><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:70%\" id=\"content-wrapper\">\n<div class=\"wp-block-group content_single content_single--blog content-single-content-wysiwyg wysiwyg content-wrapper has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"margin-bottom:var(--wp--preset--spacing--4)\">\nThe Holidays Act (2003) is a significant piece of legislation that has set the foundation of leave and payroll in New Zealand since its introduction in 2003.\n\nHowever, interpretation of the Act has caused challenges amongst New Zealand-based employers and outsourced payroll providers over the years. To address this, the Government began a process in 2018 to introduce a number of big changes.\n\nWhile <a href=\"https:\/\/employmenthero.com\/nz\/resources\/whats-coming-next-for-the-holidays-act\/\" rel=\"noopener\" target=\"_blank\">these changes have been outlined<\/a>, it has now been confirmed by the <a href=\"https:\/\/www.nzppa.co.nz\/\" rel=\"noopener\" target=\"_blank\">New Zealand Payroll Practitioners Association<\/a> (NZPPA) that<strong> these will not be enacted before the New Zealand general election on 14 October 2023<\/strong>.\n<h2 id=\"what-information-has-been-released\">What information has been released?<\/h2>\nIn <a href=\"https:\/\/newsletter.idesignweb.co.nz\/t\/ViewEmailArchive\/r\/963AC877DF22E22A2540EF23F30FEDED\/C67FD2F38AC4859C\/\" rel=\"noopener\" target=\"_blank\">communication<\/a> between NZPPA and the Minister for Workplace Relations and Safety, Hon Carmel Sepuloni, Sepuloni has confirmed that the bill of proposed Holidays Act amendments will not be introduced before the election.\n\nSepuloni and the Ministry of Business, Innovation and Employment (MBIE) have clarified that the policy design process has been completed and that drafting of the Bill is underway and continuing. However, they believe that further work is required to ensure that it\u2019s fully ready for employers. They cite that the Bill\u2019s size and scope requires more time to ensure it\u2019s accessible and simple enough to avoid the confusion experienced by some employers in regard to the current Act.\n<h2 id=\"what-does-this-mean-for-employers-and-payroll-practitioners\">What does this mean for employers and payroll practitioners?<\/h2>\nIn short, hold tight. The earlier predictions were for the Holidays Act amendments to be in place in early 2023, but that is <a href=\"https:\/\/www.mbie.govt.nz\/business-and-employment\/employment-and-skills\/employment-legislation-reviews\/holidays-act-reform\" rel=\"noopener\" target=\"_blank\">no longer the case<\/a>.\n\nFor now, it\u2019s critical that employers and payroll practitioners continue to do their best to stay compliant with the Holidays Act as it stands currently. That means ensuring the correct leave entitlements for employees, as well as payroll and PAYE calculations. <a href=\"https:\/\/employmenthero.com\/nz\/resources\/navigating-the-holidays-act-2003-and-ensuring-payroll-compliance\/\" rel=\"noopener\" target=\"_blank\">Check out our guide<\/a> to navigating the current Holidays Act (2003).\n\nThe next few months could see some significant changes to the New Zealand employment law landscape. It can never hurt employers or payroll professionals to remain aware of the potential changes on the horizon \u2013 however far away that horizon may be.\n\nWe\u2019ve listed some of the <a href=\"https:\/\/employmenthero.com\/nz\/resources\/whats-coming-next-for-the-holidays-act\/\" rel=\"noopener\" target=\"_blank\">proposed changes<\/a> to the Holidays Act below.\n<h2 id=\"what-are-the-proposed-changes-to-the-nz-holidays-act\">What are the proposed changes to the NZ Holidays Act?<\/h2>\nThere are a number of proposed changes to the Holidays Act \u2013 here are the main ones that will likely have the biggest impact on employers and payroll practitioners across New Zealand.\n<h3 id=\"annual-holidays-payments-will-be-calculated-differently\">Annual holidays payments will be calculated differently<\/h3>\n<strong>What is currently in place:<\/strong>\n\nAnnual holidays payments are currently paid at the greater of Ordinary Weekly Pay (OWP), or the Average Weekly Earnings (AWE) over the last 12 months.\n\n<strong>What could change:<\/strong>\n\nThe proposed changes add one additional calculation \u2013 that annual holidays payments can also be paid at the average weekly earnings over the last 13 weeks.\n<h3 id=\"employees-will-be-entitled-to-some-types-of-leave-sooner\">Employees will be entitled to some types of leave sooner<\/h3>\n<strong>What is currently in place:<\/strong>\n\nThis will be a big one for employers. Many types of leave in New Zealand require employees to have worked for their employer for a certain period of time before they can be taken.\n\n<strong>What could change:<\/strong>\n\nWhen it comes to annual leave, employees are entitled to four weeks after 12 months of employment with their employer. For family violence leave, bereavement leave and sick leave, employees need to have worked for at least six months with their employer.\n\nUnder the new changes, employees will be entitled to bereavement and family violence leave, as well as start accruing sick leave, from their first day in the company. Annual leave will be permitted in the amount they would be eligible for on a pro rata basis.\n<h3 id=\"pay-as-you-earn-paye-details-will-be-clarified\">Pay as you earn (PAYE) details will be clarified<\/h3>\n<strong>What is currently in place:<\/strong>\n\nThere has been some confusion in the past over how PAYE applies to \u2018intermittent\u2019 or \u2018irregular\u2019 work.\n\n<strong>What could change:<\/strong>\n\nThe new recommendations will have a clearer definition of this type of employment. Employers also won\u2019t be able to pay PAYE for employees on a fixed term contract of less than 12 months.\n<h3 id=\"parental-leave-will-no-longer-affect-annual-leave-pay-on-return-to-work\">Parental leave will no longer affect annual leave pay on return to work<\/h3>\n<strong>What is currently in place:<\/strong>\n\nAt the moment, every employee who takes parental leave receives reduced annual leave pay for leave they have become entitled to during or in the 12 months following their return to work. This is known as the \u2018parental leave override\u2019.\n\n<strong>What could change:<\/strong>\n\nUnder the suggested changes, this override will be scrapped and returning employees will be paid the full rate for annual leave.\n\nHere at 91±¬ΑΟ, we\u2019ll keep you up to date with any news regarding employment law, as and when we receive it. Thanks to <a href=\"https:\/\/www.nzppa.co.nz\/\" rel=\"noopener\" target=\"_blank\">our friends at NZPPA<\/a> for this important Holidays Act information.\n\nFor more employment law updates, check out our <a href=\"https:\/\/employmenthero.com\/nz\/resources\/employment-law-updates\/\" rel=\"noopener\" target=\"_blank\">quarterly factsheet<\/a>.\n<p class=\"legal\"><em>Disclaimer: The information in this article is current as at 9 August 2023, and has been prepared by 91±¬ΑΟ Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (91±¬ΑΟ). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. 91±¬ΑΟ does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.<\/em><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-2 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\" data-trigger-modal=\"request-a-demo-modal\"><a class=\"wp-block-button__link wp-element-button\">Learn more<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--20);padding-bottom:var(--wp--preset--spacing--20)\">\n<div class=\"wp-block-group is-content-justification-space-between is-layout-flex wp-container-core-group-is-layout-14 wp-block-group-is-layout-flex\" style=\"margin-bottom:var(--wp--preset--spacing--10)\">\n<h3 class=\"wp-block-heading\">Related Resources<\/h3>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-link-arrow is-style-link-arrow--3\"><a class=\"wp-block-button__link has-btn-brand-background-color has-background wp-element-button\" href=\"\/resources\/?topic%5B0%5D%5B0%5D=Product\">View all<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-query blog-3-col-query-loop is-layout-flow wp-block-query-is-layout-flow\"><ul class=\"columns-3 alignfull wp-block-post-template is-layout-grid wp-container-core-post-template-is-layout-2 wp-block-post-template-is-layout-grid\"><li class=\"wp-block-post post-57112 post type-post status-publish format-standard has-post-thumbnail hentry category-uncategorized resource-type-blog\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-17 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:16\/9;width:100%;height:100%; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/nz\/blog\/onboarding-speed\/\" target=\"_self\"  style=\"height:100%\"><img loading=\"lazy\" decoding=\"async\" width=\"1600\" height=\"900\" src=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Time to productivity: Why onboarding speed matters\" style=\"width:100%;height:100%;object-fit:cover;\" srcset=\"https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers.webp 1600w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers-300x169.webp 300w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers-1024x576.webp 1024w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers-768x432.webp 768w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers-1536x864.webp 1536w, https:\/\/employmenthero.com\/nz\/wp-content\/uploads\/sites\/5\/2026\/05\/People-working-in-a-well-lit-office-on-their-computers-440x248.webp 440w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group blog-3-col-details wp-container-content-3 is-vertical is-content-justification-left is-nowrap is-layout-flex wp-container-core-group-is-layout-16 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-15 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><a href=\"https:\/\/employmenthero.com\/nz\/resources\/blog\/\" rel=\"tag\">Blogs<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/nz\/blog\/onboarding-speed\/\" target=\"_self\" >Time to productivity: Why onboarding speed matters<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-2\"><p class=\"wp-block-post-excerpt__excerpt\">Do you know what a slow onboarding process is costing you? 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Pulling together months of notes, writing fair and&hellip; <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/nz\/blog\/ai-performance-review\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: AI performance reviews: How to use AI to give better feedback<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/nz\/blog\/ai-performance-review\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><\/ul><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>It has been confirmed by MBIE that there will be no changes to the Holidays Act before the election.<\/p>\n","protected":false},"author":30,"featured_media":41532,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_lite_auth_enabled":false,"_lite_auth_trigger_method":"scroll","_lite_auth_scroll_percent":25,"_lite_auth_click_element_query":"","exclude_from_algolia":false,"reading_time":"4 min 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