Study Leave Entitlements in New Zealand

If you employ people in New Zealand, chances are you’ll be asked (sooner or later) about taking time off for study, exams, training courses, or professional development.

This is where a lot of small business owners get stuck. Unlike annual leave or sick leave, study leave entitlements aren’t always clearly set by law in the same way - but you still need to handle requests fairly, consistently, and in a way that protects your business.

In this guide, we’ll walk through what “study leave” usually means in NZ, what the law does (and doesn’t) require, how to structure your approach, and the key documents and policy settings that help you stay protected from day one.

What Are Study Leave Entitlements In NZ (And Are They A Legal Minimum)?

In simple terms, study leave is time off work for an employee to participate in education or training - for example:

attending a course or workshop
sitting exams
completing mandatory training for a role
undertaking professional development to maintain registration (common in health, trades, finance, education and similar industries)

Here’s the key point for employers: there’s generally no automatic, universal legal minimum entitlement to “study leave” in New Zealand in the way there is for annual leave and sick leave under the Holidays Act 2003.

Instead, study leave entitlements typically come from:

the employee’s individual employment agreement (or a collective agreement, if applicable)
a workplace policy (for example, a professional development policy)
a negotiated arrangement (agreed case-by-case)
industry or role expectations (especially where training is required to meet legal or professional standards)

That said, “no fixed minimum” doesn’t mean “no legal risk”. Your decisions still sit inside NZ employment law principles like good faith, fair process, and consistency.

It’s also common for employers to build study leave and training support into the Employment Contract, especially where ongoing training is part of the role.

Which NZ Laws Matter When You’re Managing Study Leave?

Even if study leave entitlements aren’t a standard minimum, several laws still shape what you can and can’t do as an employer.

Employment Relations Act 2000 (Good Faith And Fair Dealing)

The Employment Relations Act 2000 requires employers and employees to deal with each other in good faith. In practice, this affects study leave because you should:

genuinely consider requests (rather than dismissing them without thought)
respond within a reasonable time
avoid misleading an employee about what is available
apply your approach consistently across employees in similar situations

If you’ve supported study leave in the past, or you have a policy suggesting you will, you should be careful about declining without a sensible business reason.

Holidays Act 2003 (Annual Leave, Alternative Leave, Sick Leave)

Study leave itself isn’t set out as a minimum entitlement under the Holidays Act 2003, but employees may ask to use other leave types to cover study-related time away, such as:

annual leave (especially for exam days or intensive blocks)
alternative holidays (for example, if the employee has earned an alternative holiday for working on a public holiday, and they agree to take it at a particular time)
sick leave if stress or illness is involved (this is more sensitive - you should treat it like any other sick leave scenario and focus on the usual notice and medical evidence rules, rather than trying to police the “reason”)

Some employers also agree to time off in lieu (TOIL) arrangements. Keep in mind this isn’t a standalone statutory leave type in the Holidays Act in the same way as annual leave or sick leave - so if your business offers TOIL (whether by agreement, policy, or custom), it’s worth clearly documenting how it works and recording it consistently. The basics in Time Off In Lieu are a useful starting point.

Health And Safety At Work Act 2015 (Training And Competency)

If training is necessary for employees to do their job safely (or to meet health and safety requirements), you may have obligations to ensure workers are trained and supervised appropriately.

In some situations, the question isn’t “do they have study leave entitlements?” but rather “do we need to ensure this training happens so we’re meeting our duties?”

Human Rights Act 1993 (Discrimination Risks)

Be cautious about inconsistent decision-making. If study leave requests are treated differently based on protected characteristics (such as sex, family status, religion, disability, age, etc.), you could create discrimination risk - even unintentionally.

A clear policy and consistent process is your best protection here.

Paid Vs Unpaid Study Leave: What Are Your Options As An Employer?

From an employer perspective, the most important thing is to decide what you’re willing to offer and document it clearly. In NZ, study leave arrangements commonly fall into a few buckets.

1) Paid Study Leave (Employer-Funded Time Off)

Paid study leave is often offered when:

the study directly relates to the employee’s current role
it builds skills your business needs
you want to improve retention and career pathways
the employee is in a regulated/professional role where ongoing learning is expected

Paid study leave might be a set entitlement (e.g. “2 paid study days per year”) or a discretionary benefit. If it’s discretionary, say so - and define the decision-making criteria.

2) Unpaid Study Leave (Approved Time Off Without Pay)

Unpaid study leave can work well where:

the study benefits the employee but isn’t essential to your business
the business can manage the absence but can’t justify the cost
you want to be supportive without setting a precedent of paid leave

Even for unpaid leave, you’ll want a consistent approval process so your managers aren’t making “on the spot” decisions that create fairness issues later.

3) Annual Leave Used For Study

This is one of the simplest approaches. The employee requests annual leave, you consider operational needs, and (if approved) it’s treated like any other annual leave.

Just keep in mind: if the course is required by you (or required to lawfully and safely perform the job), it may be more appropriate to treat it as work time rather than “their annual leave”.

4) Flexible Hours Or Temporary Hours Changes

Some businesses agree to temporary roster changes (e.g. the employee starts later on class days, compresses hours, or shifts their schedule during exam periods).

Be careful here: changing working patterns can affect availability expectations and payroll calculations. If you’re considering reduced hours, make sure you understand the broader implications of Reducing Staff Hours and how changes should be agreed and recorded.

5) Mandatory Training Time (Often Treated As Work Time)

Where training is required for the role - for example, to meet safety requirements, comply with professional standards, or learn business-specific systems - it’s commonly treated as work time and paid accordingly. Exactly how this plays out can depend on the employment agreement, what the training is, and when/where it’s undertaken, so it’s worth being clear in writing about expectations.

Also, if training occurs outside ordinary hours, check how your agreement deals with additional hours (including any overtime rates, penal rates, or TOIL arrangements you offer) so you don’t inadvertently underpay staff. The basics in Working Overtime are a useful reference point for many employers.

How To Create A Clear Study Leave Policy (Without Boxing Yourself In)

If you’re running a small business, a study leave policy is one of those “quietly powerful” tools - it reduces ad-hoc negotiations, improves consistency, and protects your time.

A good policy doesn’t need to be long. It does need to be clear.

What Your Study Leave Policy Should Cover

Consider including:

Eligibility: who can access study leave (e.g. permanent employees only, minimum tenure, performance standards)
What counts as “study”: role-related training, formal qualifications, short courses, professional registration requirements
Paid vs unpaid options: what you offer and what’s discretionary
Caps and limits: e.g. maximum paid study days per year, or per course
Notice requirements: how far in advance the employee needs to apply
Evidence requirements: course enrolment, timetable, exam dates, proof of attendance (where reasonable)
Operational requirements: business needs, peak periods, minimum staffing levels
Repayment/training cost rules: when repayment might apply (more on this below)
Interaction with other leave: annual leave, unpaid leave, flexible work arrangements

It’s often best to put this into your wider workplace documentation rather than reinventing the wheel each time. Many businesses cover this within a broader Workplace Policy framework.

How To Keep Decision-Making Fair (And Avoid Setting Accidental Precedents)

One common trap is approving study leave informally for one person (“sure, just take Friday off for your exam”) and then later trying to say no to someone else. That’s how inconsistent treatment arguments start.

To stay consistent, build a simple internal process, such as:

Employee submits request in writing (even a short email is fine).
Manager checks the policy criteria and operational impact.
Approval/decline is given in writing with brief reasons.
Payroll/rostering is updated (paid/unpaid/annual leave recorded correctly).

If you have multiple managers, document these steps in your handbook so everyone follows the same approach. For growing teams, a Staff Handbook can be a practical way to keep these expectations in one place.

Training Costs, Repayment Clauses, And Other Common Employer Questions

Study leave often comes hand-in-hand with another issue: who pays for the course, and what happens if the employee leaves soon after?

There isn’t a one-size-fits-all answer - but there are “usual” approaches that can help you balance investment in your team with risk management.

Can You Require Employees To Repay Training Costs?

Potentially, yes - if it’s agreed properly and structured fairly.

Many employers use a repayment clause (sometimes called a training bond) where the employee agrees that if they resign within a certain period after completing employer-funded training, they repay some of the cost (often on a sliding scale).

To reduce risk, repayment arrangements should be:

clearly documented in writing (ideally in the employment agreement or a separate training agreement)
reasonable in amount and time period
linked to genuine costs you paid (course fees, exam fees, sometimes travel/accommodation depending on the role)
applied consistently across employees in similar roles

Also note: even if you have a repayment clause, you generally shouldn’t make deductions from wages (including final pay) unless the employee has given valid written consent for the specific deduction or a clearly authorised deduction mechanism. Because enforceability can depend on the exact wording and the situation, it’s worth getting legal help to set this up properly rather than relying on a template.

Can You Decline Study Leave Requests?

Yes - especially where study leave is discretionary or not included in the employment agreement. But you should decline carefully.

Common valid business reasons include:

you can’t maintain minimum staffing levels
it’s a peak trading period
the employee hasn’t given enough notice
the requested time off is excessive compared with what you offer others
the study is not relevant and you’ve chosen not to support it

If you decline, document a short explanation and, where possible, offer alternatives (different dates, annual leave, unpaid leave, or partial support).

Do You Need To Offer Study Leave To Casual Or Fixed-Term Staff?

This depends on what’s in the agreement and your policies. Casual and fixed-term arrangements often have different expectations around benefits, but they still need to be treated fairly and in good faith.

If you employ casual staff, it’s important to understand how entitlements can differ and what still applies - for example, Casual Workers Leave Entitlements can affect how you structure time off requests generally.

What If Study Leave Is For A Qualification That Benefits The Employee More Than Your Business?

This is a really common scenario. The “fair” approach many employers take is:

approve unpaid leave or annual leave for exam days; and/or
offer flexibility (shift swaps, adjusted hours) where operationally possible; and
reserve paid study leave for role-relevant training that your business needs

The key is to communicate your rationale upfront so it doesn’t feel personal or arbitrary.

Key Takeaways

In New Zealand, study leave is not generally a universal minimum entitlement - it usually depends on the employment agreement, workplace policy, or what you negotiate with the employee.
Even without a set statutory entitlement, you still need to manage study leave requests in a way that aligns with good faith and fair dealing under the Employment Relations Act 2000.
It’s smart to decide (and document) whether your business offers paid study leave, unpaid study leave, annual leave for study, or flexible work arrangements - and what criteria you’ll use.
Where training is required for the role (including safety-related training), it may be more appropriate to treat time spent training as paid work time - and to check any additional-hours, overtime, or TOIL settings in your agreements and payroll processes.
A clear, written policy helps you stay consistent, reduces disputes, and avoids accidental precedents - especially as your team grows.
If you want to protect your investment in staff development, consider properly drafted training cost repayment clauses - and make sure any wage deductions are handled lawfully and with the right written consents.

If you’d like help setting up study leave clauses, training repayment terms, or workplace policies that fit your business, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.

Study Leave Entitlements In New Zealand: Employer Obligations