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EMA welcomes long-awaited overhaul of Holidays Act

Source: EMA

The Government’s announcement to repeal and replace the Holidays Act is a long-overdue fix to a system that has caused confusion and cost for both employers and employees, says the Employers and Manufacturers Association (EMA).
Alan McDonald, Head of Advocacy and Strategy at the EMA, says the new Employment Leave Act will bring much-needed clarity and simplicity to leave entitlements.
“Our first submission on the Act dates back to 2017, so it’s great to finally see a government follow through with a system based on simplicity,” he says.
“Employers and employees should be able to more easily understand and apply the rules and that’s a win for everyone. Small to medium-sized businesses should welcome the changes as it brings clear calculations with few other considerations being required.”
The EMA says the shift to an hours-based accrual system for annual and sick leave is a practical and fair solution, particularly for part-time and casual workers. The introduction of pro-rata sick leave more fairly reflects a sick leave entitlement between full-time and casual/part-time workers who all currently get 10 days sick leave regardless of how few hours they work.
The increase in the Leave Compensation Payment (LCP) entitlement helps offset that change for part-timers and better reflects actual hours worked. It also reduces the leave entitlement employers have to carry on their books.
“The current system has led to many millions in remediation payments across both the public and private sectors. This reform will help prevent those liabilities in future,” says McDonald.
“It’s also fairer. Under the current rules, someone working one shift a week could receive the same sick leave entitlement as someone working full-time. That imbalance needed to be addressed.”
The EMA also supports the move to allow leave to be taken in hours rather than full days, and the ability for employees to cash up a greater portion of their annual leave balance. Under the proposed changes, employees would be able to cash out up to 25% of their unused annual leave at each 12-month anniversary of their employment.
McDonald adds that these changes reflect the realities of modern work and give both employers and employees more flexibility.
The EMA notes that while some changes, such as the treatment of parental leave and the LCP for casual workers, may result in minor cost increases for employers, these are balanced by savings from simplified administration and fairer leave calculations.
“Overall, this is cost neutral for most employers, and the time saved from not having to navigate a convoluted system is a major win,” says McDonald.
The EMA also says the 24-month implementation period is pragmatic, allowing businesses and payroll providers time to rewrite software, adjust systems and manage the transition.
“There’s still work to be done on the transition arrangements, particularly for employees with existing leave balances, but this is a strong start,” he says. “We commend the Minister and her team for tackling a long-standing issue and delivering a solution that’s clear and workable.”
Workplace Relations and Safety Minister Brooke van Velden made her announcement on the reform of the Holidays Act at a forum today for EMA members. The event was sponsored by Smartly, the Kiwi-made payroll and people management software that helps thousands of small to medium-sized businesses pay their people simply and compliantly.
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Long awaited Holidays Act changes create winners and losers – NZCTU

Source: NZCTU Te Kauae Kaimahi

The NZCTU Te Kauae Kaimahi has welcomed changes to the Holidays Act that will provide sick, bereavement and family violence leave from day one of employment, remove the unfairness for those returning from parental leave, increase casual loading, and provide for pay statements.

However, some workers lose out in the changes proposed including removing commission and bonuses from holiday pay, reducing sick leave for part timers, and removing leave accruing for workers on ACC.

“The CTU has long advocated for improvements to the Act. We remain deeply concerned about the earnings that have been denied working people due to misapplication of the current Act. While we were successful in getting remedial settlements for many workers, such as health employees at Te Whatu Ora, many people have still missed out,” said NZCTU President Richard Wagstaff. 

“When this review commenced under the last government, businesses and unions agreed that the Holidays Act should be simplified but that reforms should not result in a reduction in worker leave entitlements. 

“The proposed changes do not fully honour that understanding – they will reduce sick leave entitlements for part-time workers (and holiday pay for those on commission). 

“The impacts will disproportionately fall on Māori, Pasifika, women and other vulnerable workers, who are more likely to be in part-time and insecure work.

“It is good that the Act will be simplified but that didn’t need to come at the expense of the hard-won entitlements of working people,” said Wagstaff.

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Defence News – NZDF throws weight into Cook Islands infrastructure work

Source: New Zealand Defence Force (NZDF)

The full team of New Zealand Army engineers and support staff has arrived on the small island of Ma’uke in the Cook Islands, where they will conduct crucial infrastructure upgrades over the next few weeks.

The Royal New Zealand Air Force C-130J Hercules delivered the main body of personnel from 25 Engineer Support Squadron, 2 Engineer Regiment (2ER) on Monday, local time.

A large proportion of Ma’uke’s 240 residents were at the airport to welcome the aircraft and personnel with speeches and songs.

Exercise Tropic Twilight is a long-running annual exercise in various South West Pacific countries. It is funded by New Zealand’s Ministry of Foreign Affairs and Trade and delivered by the New Zealand Defence Force.

This year, more than 30 personnel will carry out maintenance and improvements on Ma’uke’s solar farm, water infrastructure, school and halls.

Serving tradespeople from Australia, Fiji, Tonga and Vanuatu will contribute to work, and they will be backed up by medical and logistics teams.

Troop Commander Lieutenant Jarrod Wilson said the key tasks were repairs and upgrades to the island’s solar-powered water bores, the solar farm and work on Apii Ma’uke – the only school on the island.

“The water and power improvements will be quite far-reaching but even the smaller tasks, such as at the school, will mean things like the students won’t have to walk in the rain to go between classes.”

Tropic Twilight was a good opportunity to get offshore and for the military tradespeople to practice their craft in an expeditionary environment, Lieutenant Wilson said.

“2ER has a long history of this sort of work. Already this year our personnel have deployed around the Pacific, to places such as Papua New Guinea, Fiji and Tonga.

“We are confident that we can get everything done, we’ve got some pretty skilled people here.”

Lieutenant Wilson, who has been part of the advanced party on Ma’uke for a week, said the locals had already been fantastic hosts, and especially generous with food.

The soldiers had also been invited to a rare aka’uru’uru’anga ceremony, where three family members were invested as elders.

“It’s a welcome like I’ve never received before. They are really showing how hospitable they are.”

Mau’ke Mayor Joanne Rongoape Stephens said she was delighted Tropic Twilight was able to help maintain the island’s assets.

Ma’uke’s water supply, which is sourced from an aquifer and reticulated to users, was very important to the island, she said.

 “Our water is pure and we want to maintain that to make sure it keeps going for the next generation.”

She was also thrilled to have so many more people on the island and said it brought back memories.

“The last time I saw the Hercules was in 1985. Seeing it again is amazing. This is a joyful time.”

Tropic Twilight is also the first overseas exercise and a great experience for Sapper Killian Ansell, who has about one month of his four-year electrical apprenticeship to go.

It was an honour and privilege to be on Ma’uke and the locals had been very welcoming, he said.

The solar plant, which started in 2019, will have air conditioning units installed in the battery room to help stop the inverters overheating, allowing the batteries to operate efficiently, Sapper Ansell said.

“Normally we work on residential solar. The solar farm would be a big step up. It will be challenging once we get into it properly.”

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Business Canterbury – Proposed Employment Leave Act the reset businesses were looking for

Source: Business Canterbury

Business Canterbury welcomes the proposed Employment Leave Act which is set to replace the long-criticised Holidays Act – one of the most significant legislative resets for employers in years.
Business Canterbury chief executive Leeann Watson says, “This is the change our business community has been waiting for.”
“In my eight years leading Business Canterbury, no single piece of legislation has caused more frustration, confusion, and cost than the Holidays Act. It’s been a compliance nightmare, riddled with complexity, manual payroll interventions and underpayment risk.
“The Holidays Act has been under formal review since 2018 and Business Canterbury has consistently advocated for reform, so we’re pleased to see real progress finally being made.
“The current Act’s leave formulas have been patched-up and added to over the years, creating a confusing system that fits no one well – instead of formulas that work well for most situations and provide flexibility at the margins – which we think the new Employment Leave Act will achieve.
“The overcomplication and uncertainty in the current Act has led many businesses to overpay leave entitlements just to avoid falling foul of the rules.
Industries like manufacturing, hospitality, and retail, which rely heavily on casual and part-time staff have borne the brunt of the current Act’s shortcomings. The proposed changes including hourly accrual of both annual and sick leave, calculated using a single, consistent method will be clearer, fairer, and more practical for employers and employees.
“While the introduction of a simplified Leave Compensation Payment may increase costs for some, the trade-off is greater certainty, fewer payroll errors, and reduced administrative burden.
“One area of caution is the proposal to allow sick leave to be taken in hourly increments. This could pose operational challenges for sectors like manufacturing and hospitality, where short-notice and short-timeframe cover is difficult to arrange.
“This reform is absolutely a step in the right direction and is one of several changes the Government could make to reduce the friction, cost, and risk associated with hiring.”
Business Canterbury will continue to support its members with expert HR advice as they prepare for the new legislation, which is expected to take effect in late 2028. It will also work closely with businesses during the implementation phase to ensure their systems, policies, and processes are match-fit for day one.
About Business Canterbury
Business Canterbury, formerly Canterbury Employers’ Chamber of Commerce, is the largest business support agency in the South Island and advocates on behalf of its members for an environment more favourable to innovation, productivity and sustainable growth.
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New sick leave reductions will leave retail workers feeling queasy

Source: Workers First Union

Minister Brooke van Velden continues to find fresh ways of making life worse for New Zealand’s workers with a new sick leave policy announced today that will continue the erosion of workers’ rights under this Government and risk our country’s public health response, increase unemployment and underemployment, and disproportionately affect working women and those with long-term health issues, Workers First Union said today.
“The reduction of sick leave entitlements for part-time workers is an idiotic move that proves this Minister has no idea what it’s like to work a real job with lots of public interaction while juggling the difficulty of your children getting sick at school,” said Dennis Maga, Workers First Union General Secretary.
“There is no defensible reason for a person working part-time to have access to less sick leave than someone working full-time,” said Mr Maga. “No matter what hours you work, everyone is prone to getting sick, and especially those with kids who are more likely to be in part-time work.”
“In the retail sector, we’re already hearing that people are being forced to use up annual leave to cover periods of illness beyond their statutory leave entitlements. Those who work customer-facing roles are much more likely to become ill, and it’s in everyone’s interest to ensure they can rest and not risk spreading illness by being forced into work to make ends meet.”
Jess Fuller, a retail worker and member of the Workers First national executive, said the policy would not be warmly received by retail workers, who she said were already struggling to survive on ten days of sick leave.
“I think it’s a disaster of an idea,” said Ms Fuller. “It seems like they just don’t get what it’s like to work a retail job and deal with sick customers when you also have kids in daycare who bring home all kinds of bugs.”
“Having access to decent sick leave is one of the reasons a young mum can go back to the workforce after parental leave. I think this will just increase the number of people forced onto welfare and make more retail workers come to work sick and spread germs to customers.”
“It’s also going to compromise an already burnt-out workforce that’s struggling with low staffing levels and low pay rates in the industry.”
However, Mr Maga said that union members would largely be protected from the effects of this policy due to Collective Agreements that included 10 days of sick leave locked in, which unions would continue to negotiate for all members, whether full- or part-time, despite the Government changing statutory entitlements.
“This is part of a calculated and sustained attack on the working class to benefit rich employers and their pursuit of profit above all else,” said Mr Maga. “There is no other reason to put this policy forward.”
“Whether it’s pay deductions for partial strike actions, changing contractor laws to benefit companies like Uber, or removing protections for unjustified dismissal; this is a ‘trickle up’ Government that reallocates power and wealth from workers to their bosses.”
“It’s like we learned nothing from the Covid pandemic, despite all of the well-wishing and ‘essential heroes’ talk of the time, which clearly meant nothing to the selfish and exploitative ACT Party, who want all labour to be disposable and docile.”
Mr Maga said unions were already planning major protests against this Government’s removal of hard-won workers’ rights, and policies like the one announced today would help to drive turnout and increase union membership among part-time workers.
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Women, casual, & part-time workers worse off with Holidays Act overhaul – PSA

Source: PSA

The Government is prioritising saving money for employers, over the rights of women, casual and part-time workers to fair compensation for being sick and working public holidays.
Workplace Relations Minister Brooke van Velden today announced an overhaul of the Holidays Act 2003 with a new law to come into effect next year.
“The shake-up of rules and entitlements will just give workers yet another reason to cross the Tasman where pay and conditions, particularly around holiday and sick leave, are far more favourable,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.
“We are fast becoming just a labour hire company for Australia.
“Many our members are women who work part-time and will end up having to work longer to accrue sufficient sick leave. They have greater care responsibilities so will be penalised under the changes and will be unable to afford to take as much sick leave.
“Low paid casual workers will have to pay for their own sick leave. This means they will be less able to afford to take leave when they are sick, particularly in a cost-of-living crisis. How is that good for healthy workplaces and for workers to recover and become productive again?
“Casual workers will get a modest loading on their wages to pay for sick leave. The overall loading for annual and sick leave is 12.5%, half that of Australia.
“Similarly, changes to public holiday provisions will disadvantage all workers. The Minister is celebrating the fact that the change will save employers money. Workers get less because the employer no longer must provide a full, alternative day off. Workers will not get the benefit of a full day off to compensate for working on a public holiday.
“The PSA welcomes the changes to parental leave which allow parents to retain leave entitlements and not be disadvantaged by the time taken off.
“But overall, this package of changes continues the erosion of workers’ rights, coming on top of scrapping pay equity claims, axing Fair Pay Agreements, reducing minimum wage increases in real terms, and making it easier for employers to fire workers.
“All this will just make Australia more attractive where workers have higher pay and greater leave entitlements.
“This will further damage the Government’s much vaunted economic growth agenda – we can’t afford to lose more workers to Australia.”
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand's largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.
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Immigration – NZAMI welcomes changes to resident visa rules – provided English is set at reasonable level

Source: New Zealand Association for Migration and Investment (NZAMI)

The New Zealand Association for Migration and Investment is applauding changes to residency rules, but says they’ll succeed only if the current high bar on English language is set a little lower.

“At present, if skilled migrant workers are unable to get residency, they’re forced to leave the country. So changes announced today address a critical issue for New Zealand business,” NZAMI Deputy Chair Nick Frost says.
 
“It was entirely unsatisfactory that migrant workers who didn’t have a bachelors’ degree or higher had limited ability to meet the requirements for residency.  This was a particular problem for employers of skilled tradespeople in productive sectors such as manufacturing. So well done to the Government for making these changes.”
 
While cautiously optimistic about the changes, one critical problem is the unreasonably high level of English that skilled migrants are required to achieve. At present most resident visa applicants are required to achieve IELTS 6.5, a university-level of English, to be eligible for residence.
 
“This is far too high. If this is not reset, many skilled tradespeople will be lost, to the detriment of industry and economic growth,” Frost says.
 
NZAMI highlighted the wide gap between requirements for investors and skilled migrants. The Government recently announced a new Business Investor resident visa category for which applicants need to achieve IELTS 5.0. These investors will be required to interact in English with their new business’s stakeholders such as customers, employees, unions, and banks.
 
“Immigration policy needs to be consistent. If ILETS 5.0 is a sufficient level of English for a business investor applicant, then it should be sufficient for a tradesperson applicant,” Frost says. “Aligning requirements at IELTS 5.0 is critical to the success of the new skilled migrant pathway.
 
“If the Government continues to require university level English for tradespeople this will disrupt workplaces and communities by forcing valued skilled workers to leave the country,” Frost says.

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Aviation – Airways New Zealand announces 2025 full year results

Source: Airways NZ

  • 492,037 flights safely managed through 30 million square kilometres of airspace
  • No WorkSafe notifiable events involving our people
  • Net operating profit after tax of $11.9m
  • $10 million dividend returned to the New Zealand Government
Airways New Zealand has today announced its annual results for the year ending 30 June 2025. The air navigation services provider is reporting strong safety and operational performance and a positive financial result.
Throughout the year Airways continued to deliver on its core purpose of ensuring the safety of New Zealand skies, safely managing 492,037 flights through the 30 million square kilometres of airspace it controls.
“While the aviation sector navigates a complex operating environment, Airways remains focussed on delivering safe, efficient and dependable services,” Board Chair Denise Church QSO says.
The State-Owned Enterprise is reporting a net profit after tax of $11.9 million for the year ended 30 June 2025. Airways will also deliver a dividend of $10 million to its government shareholder.
“These results were delivered against a backdrop of a tight fiscal environment and operational constraints across the aviation sector, demonstrating our strong cost discipline and long-term investment focus”, Ms Church says.
While the long-term outlook for New Zealand air traffic is positive, the 2026 financial year will present headwinds as the challenging fiscal environment in the industry continues.
Air traffic volumes remain at around 90% of 2019 levels which presents challenges in a user-pay environment with service level agreements in place for the provision of air traffic services. In this context, Airways recently concluded its pricing consultation for the FY26-28 period.
“Airways has acknowledged the ongoing challenges facing the New Zealand aviation industry as it grapples with a number of challenges. We will continue to balance cost management in the current industry context with our obligations to provide a safe, efficient and reliable service now and into the future”, Ms Church says.
Appropriate prioritisation of work and continuing to work closely with stakeholders will ensure Airways continues to meet its objectives, Chief Executive James Young says.
“We look forward to continuing to deliver value to New Zealand through the essential service we provide and financial return to our shareholder,” he says.
This year, Airways hosted the Civil Air Navigation Services Organisation (CANSO) Global Safety Conference in Christchurch. The event brought together 160 senior leaders from the global aviation sector, providing a platform to exchange insights and reinforce New Zealand’s contribution to international airspace safety.
My Young says “Hosting the conference provided insights that will help us further strengthen how we serve all users of New Zealand’s airspace, generated commercial opportunities and highlighted our position as a trusted global partner.”
About Airways
Airways New Zealand provides air navigation services within New Zealand airspace and across our Auckland Oceanic Flight Information Region – one of the largest airspace regions in the world.
We are also responsible for maintaining and investing in the aviation infrastructure that supports New Zealand’s air traffic management system.
Alongside our core business providing air traffic management services in New Zealand, Airways International delivers air traffic management consultancy, airspace design, and training products and services around the world.
Airways employs approximately 800 staff in highly skilled and technical roles. Our people work across two surveillance centres in Christchurch and Auckland, 19 towers and corporate offices in Auckland, Wellington and Christchurch.
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Ombudsman – Whistle-blower’s action prompts Health NZ to strengthen nationwide safety checks for adults working with children

Source: Office of the Ombudsman

A decision by a hospital whistle-blower to go to the Ombudsman has led Health New Zealand to strengthen nationwide safety checks on employees and contractors working with children.
The Chief Ombudsman, John Allen, has published his final opinion on the case today.
Mr Allen says the hospital worker raised concerns with the Ombudsman under the Protected Disclosures Act 2022.
“Everyone in our country benefits when people are willing to call out serious wrongdoing.”
The person alleged that child safety checks for contractors including police vetting had not been carried out for some years at the hospital where they worked.
The Ombudsman raised the matter with Health NZ, which audited a number of hospitals.
A total of five regions were looked at across the country: Bay of Plenty, Lakes, Tairāwhiti, Nelson-Marlborough and Canterbury.
Concerned by the audit’s results, the Ombudsman initiated his own investigation under the Ombudsmen Act 1975.
The Ombudsman found that Health NZ had not been following the vetting processes required under the Children’s Act 2014.
“I consider it to be wrong and concerning, that this issue had not been picked up for nine years, despite these checks being a legal requirement.”
As a result of the Ombudsman’s findings, Health NZ agreed to update its processes across the country and create a central safety hub. It is also carrying out national audits, and monitoring compliance to make sure children are protected.
Mr Allen says the changes demonstrate how individuals can make a real difference by speaking up.
“The whistle-blower showed great courage and commitment in this case and, by speaking out, their disclosure led to changes not just in one hospital but nationwide.
“It is thanks to their courage and commitment that we have achieved this significant outcome to help keep children safe within the health sector.”
The whistle-blower, who wishes to remain anonymous, believes their actions were worthwhile. “I'm so grateful, extremely pleased and impressed by the outcome of the investigation and the thoroughness and care that was taken to come to this decision.
“If we've managed to save one child from harm, I'm ecstatic about that!
“I have peace knowing that the processes put into place will be sufficient to ensure that doesn't happen again, especially as there is oversight and reporting now.”
Mr Allen says the case highlights the Ombudsman’s role in driving systemic improvement through constructive engagement – both with individuals and with public sector agencies.
“I hope that by publishing my opinion, it may have a positive impact on other sectors that work with children.
“There is a need for better co-ordination across the public sector to improve the monitoring and oversight of safety checks.
“There is a strong case for one agency to have overall responsibility to make sure that vetting occurs.
“Our goal is to ensure the public sector acts lawfully and in the best interests of the people it serves. By speaking up, individuals help us identify where systems are failing and where change is needed,” Mr Allen says.
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Foreign Policy Group Slams Secrecy around NZ Position on Palestine, Calls for Sanctions – Te Kuaka

Source: Te Kuaka

Progressive foreign policy group Te Kuaka has slammed the Government’s secrecy around New Zealand’s position on Palestinian statehood.

New Zealand has not announced its position yet, with the position reportedly to be announced by Foreign Minister Winston Peters later this week at the United Nations in New York.

Australia, the UK, and Canada yesterday expressed support for Palestinian statehood.

The group Te Kuaka – which has called for independent and more democratic foreign policy – says the New Zealand public deserves to be more involved in this decision.

“This kind of pull-back-the-curtain approach isn’t appropriate for such a momentous decision about where New Zealand stands on the genocide that is occurring in Gaza,” says Gabriella Brayne, a spokesperson for Te Kuaka.

“In no other area of policy would it be acceptable for there to be zero public engagement and for a minister to make such a significant decision without consulting or working with the public,” adds Marco de Jong, convenor and spokesperson for Te Kuaka.

The group says that rallies and actions across the country for two years show a strong public appetite for a firmer position in support of Palestinian rights and against Israel’s actions. Earlier this month, tens of thousands participated in the March for Humanity in Auckland, calling for sanctions on Israel – an action endorsed by over 180 organisations including major unions, and NGOs.

“At this stage, when Israel has not diverted course after various diplomatic criticisms, our view is that only sanctions – which put direct material pressure on Israel and isolate it economically – will make a difference to what is occurring,” adds Brayne.

“Recognising Palestinian statehood on its own is not enough, and objectionable if based on conditions that further Israel's aims. We call on the Government to impose sanctions on Israel as well as taking other steps to bring the genocide to an end, such as intervening in support of South Africa’s Genocide Convention case, and it is imperative that our foreign policy is more democratic and isn’t just made behind closed doors,” adds de Jong.

Te Kuaka has also produced research, including on building New Zealand’s peace mediation capacity, and undertaken a roadshow of events opposing New Zealand’s involvement in AUKUS.