Main laws

New Zealand Act

Holidays Act 2003

New Zealand employers must still calculate, pay and record leave under the Holidays Act 2003.

In forceNew ZealandPlain-English guide5 practical checks

Plain-English explainers, not legal advice. Use the linked official source for section-level detail, and get advice for your situation.

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Quick read

  • Employers must keep calculating, paying and recording leave under the Holidays Act 2003.
  • The replacement Bill points to a future hours-based system, but live payroll should not change early.

Likely relevant if

  • Employers
  • Businesses with shift or variable-hours staff
  • Hospitality and retail operators

Check first

  • Calculate holiday and leave entitlements correctly
  • Keep accurate time, pay and leave records
  • Handle public holidays and alternative holidays properly

Is the Employment Leave Bill law yet?

No. The Employment Leave Bill passed its third and final reading on 29 July 2026, but the official legislation still identified it as a Bill on 10 August 2026.

The Holidays Act 2003 therefore remains the current law. Employers should keep using its rules for leave calculations, payments and records.

What must employers keep doing now?

Keep applying the current rules for annual holidays, public holidays, sick leave, bereavement leave and related entitlements. Time, pay and leave records still need to support the calculations made.

Existing payroll checks and remediation projects should also continue under the Holidays Act 2003. Final reading of the Bill does not pause or replace those obligations.

What would change under the Bill?

The Bill proposes an hours-based framework using standard hours, additional hours and casual hours, with notional roster rules where relevant. It also proposes a 12.5 percent leave compensation payment for additional and casual hours.

Those are proposed future settings, not current payroll instructions. The Bill proposes to start on the second anniversary of Royal Assent, but no actual commencement date can be stated until Royal Assent occurs.

Key points

  • Keep present leave calculations under the Holidays Act 2003
  • Map employees with variable, additional or casual hours
  • Clean employee, hours, pay and leave data
  • Ask payroll providers how they expect to handle migration
  • Budget time for testing before any future commencement date

How can a small employer prepare safely?

Prepare the information and project plan, not a premature payroll change. Review hours clauses, rosters, timesheets, leave balances and payroll fields so the business understands its current data quality.

When the Bill's legal status changes, recheck the final legislation, Royal Assent date and official implementation guidance before configuring or testing the replacement rules.

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Update history

Reviewed29 July 2026

Employment Leave Bill passes final reading

The Employment Leave Bill passed its third and final reading on 29 July 2026. As at 10 August 2026 it remains a Bill, and the Holidays Act 2003 continues to govern leave calculations, payments and records.

Reviewed13 July 2026

Employment Leave Bill reported back from select committee

The Education and Workforce Committee recommended that the Employment Leave Bill be passed with amendments. The Bill would replace the Holidays Act 2003 and introduce an hours-based leave framework.