Well, the government process started back in 2018 on changes to the Holidays Act 2003, it is now 2023 and we are still nowhere nearer to seeing any changes that are desperately needed.

Here is what NZPPA has received from MBIE on behalf of the Minister today (8 August 2023).

Holidays Act Review Update

  • Hon Carmel Sepuloni, Minister for Workplace Relations and Safety has asked MBIE to provide you, as members of the Working Group that has supported the work to implement the Holidays Act Taskforce recommendations, an update on work to introduce a Bill.
  • Following the completion of the policy design process, drafting of the Bill is well underway and continuing. Drafting a Bill of this size and scope that accurately reflects the policy intent of the recommendations and existing provisions, provides the detail and clarity employers need, and is as accessible and simple as possible to implement is a highly technical process. Further work is required to achieve these objectives so the Bill will not be introduced prior to the election. The Government wants to take the time to get the Bill right and to minimise the risk of non-compliance issues and subsequent remediation processes, as have occurred in relation to the current Act.
  • Hon Sepuloni also asked us to thank you for the significant time, effort, and insights you have contributed to this work. During the design process we reported to the Minister on areas where the Working Group identified opportunities to enhance the clarity, workability, and implementation-readiness of the Taskforce’s recommendations. Some refinements were agreed and are reflected in the draft Bill. The insights you contributed will help to minimise the risk of implementation challenges.
  • I understand that the decision not to introduce the Bill this term may be disappointing, but I am sure you will agree that it is equally important that we get the details of the Bill right. I also want to take the opportunity to thank you for the way you have engaged with my team to support the policy design process. They are continuing work on this project and will provide updates on next steps when they are available, including any opportunities for further engagement.

NZPPA’s view is that the government cannot afford to create any more issues (and backlash from business especially small business) for itself before the election, and this is based on what NZPPA as seen from the over the top complexity that MBIE had created in their new Holidays Act.  The statement above is just spin and hype from NZPPA’s perspective from a failed opportunity to create a workable and practical new Holidays Act.

The new act represented major change to the Holidays Act with multiple calculations, tests, and checks, but with still no certainty or protection for employers and payroll that just want to get it right, so employee is paid correctly for their leave.

NZPPA supporting NZ payroll since 2007!

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