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Holiday Act Issues Paper

Wellington Chamber of Commerce and Business Central Submission

Issue date

General Comments

It is clear the current Holidays Act is no longer fit for purpose. Despite its recent passage, the Act has not kept up as labour markets have evolved to provide the rewards and flexibility staff demand. Now, the complexity and difficulty in interpreting fairly and accurately the current legislation is problematic.

We are pleased to see the progress made by the Holidays Act Taskforce to address an important issue affecting employees and employers. The comments in paragraph 10 are particularly resonant, “While it often works for a standard, five day, 40 hour week, the Act can be difficult to apply to more diverse working arrangements and complex remuneration packages.” Non-compliance is too high, usually due to issues of complexity that are not the fault of employers who want to do the right thing and pay considerable sums for expert payroll systems.

In discussions with our members we find the areas of most particular concern:

  • Accurately calculating “Holiday Pay”.
  • Definitions of “week” and “day”.
  • Discretionary payments.
  • When to apply 8% “Pay as you go”.

Our overall desire is for a simple regime that provides the entitlements employees need while making sure employers can confidently follow the law.

Comments on key issues...

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