Update: Proposed Changes to the Holidays Act – 24 month implementation period following legislation passed into law

The government has announced significant changes to the way sick leave, annual leave, and other entitlements are calculated.

The changes proposed by the Minister for Workplace Relations and passed by Cabinet are set out below . It is certainly good to see much needed reform in this area.

The Bill will now pass through the legislative process.  We will be evaluating the proposed changes and considering whether submissions are required at the select committee stage.

Key changes to the employment leave system This material is drawn from MBIE’s website

The Government intends to enact the new legislation before the end of the current parliamentary term. Once passed, a 24 month implementation period will apply, providing employers and payroll providers time to transition.

We will be providing analysis of the proposed changes and their impact on employers. We will  be seeking your input where you consider the changes are positive or negative for your business.

Please let us know if there you have any immediate questions.

Kind regards

Sylvia Wood and the Knowhow team