9.05.2018

Holidays Act: Help has arrived!

We are thrilled to announce that the first part of Holidays Act 2003: Guidance on annual holidays and related provisions has now been published

We all know that payroll compliance can be a nightmare. Automated systems don’t necessarily fit individual situations, employee work patterns don’t always fit the mould, and this is overlaid with a very technical area of the law. And to make matters worse; maths!

In particular, we know that many companies have had difficulty complying with the Holidays Act 2003. Numerous companies have been caught out in Ministry of Business, Innovation and Employment (MBIE) audits, including government agencies, and even MBIE itself.

Frighteningly (for us at least) many of the problems that have been identified were not difficulties with the interpretation of the law but just a misapplication of it where the law is actually quite clear. That said, there are some particularly difficult parts of the Holidays Act that require careful consideration.

Over the last year or so, Employment New Zealand (a team within MBIE) has brought together a team of professional service providers, payroll experts and other stakeholders to try and develop guidance for employers on interpreting and implementing the Holidays Act. Our very own Jim Roberts has been a part of this working group.

We are thrilled to announce that the first part of Holidays Act 2003: Guidance on annual holidays and related provisions has now been published on MBIE’s Employment website, and is available for your use.

This document deals with Annual Holiday entitlements, including what entitlements are available, when, and how to pay them. It sets out Key Messages for Employers, Employees and Professional Services Providers, and Key Steps for reducing the Risk of non-compliance.

It also has definitions of important terms in the Holidays Act, examples of scenarios throughout, and an Appendix with more detailed scenarios. If you are struggling with the beast that is compliance, and looking for detailed assistance, this will definitely help you out.

There are still issues that require advice but these have, hopefully, been reduced by the information in these guidelines.

If you identify issues, have questions, or just want to run a specific query by us, please feel free to contact us.

Do you need expert legal advice?
Contact the expert team at Hesketh Henry.
Kerry_100x100 1
Media contact - Kerry Browne
Please contact Kerry with any media enquiries and with any questions related to marketing or sponsorships on +64 9 375 8747 or via email.

Related Articles / Insights & Opinion

Do you really need a Fixed Term Agreement? Really really?
Most of us (and especially lawyers) like certainty.  Experience tells us however that there is nothing as uncertain as a sure thing.  Frequently, we speak to employers that are tempted to use fixed ...
28.11.2019 Posted in Employment Law
New National Interest Test Proposed for New Zealand’s Overseas Investment Rules
The New Zealand Government has recently announced yet more proposed changes to New Zealand’s overseas investment rules to be introduced early next year.
27.11.2019 Posted in Foreign Investment
ACP Cladding Update – Class Action Proposed
Media reports indicate that class action litigation in relation to ACP cladding is very likely.  A litigation funder has announced it will be funding a class action lawsuit for owners of buildings cl...
Complaints are on the rise: A snapshot of complaints made to the Commerce Commission
The Commerce Commission (Commission) has recently released a snapshot of the complaints it has received in the year to 30 June 2019.  A copy of the Commission’s report can be viewed here. The snaps...
25.11.2019 Posted in Regulatory
Unfair Contract Terms: High Court issues its first declaration
On 12 November 2019 the High Court issued its first declaration under the Fair Trading Act 1986 (FTA) that terms in a standard form consumer contract are unfair.[1]  The Commerce Commission (Commiss...
14.11.2019 Posted in Regulatory
Who is working when? Public holidays and ‘otherwise working days’
With Labour Day just around the corner, and Christmas/New Year looming, we are getting a few questions about the “otherwise working day”.
24.10.2019 Posted in Employment Law
A trust on a trust – how strange is that?
In New Zealand we are trust crazy and owning a home in trust is common place. For many, just as for Mr Hodgkinson in Judd v Hawkes Bay Trustee Company Limited [2016] NZCA 397, the trust has been set u...
21.10.2019 Posted in Trust Wills Estates
Send us an enquiry
For expert legal advice, please complete the form below or call us on (09) 375 8700.
  • This field is for validation purposes and should be left unchanged.