The New Employers Leave Bill and What Employers and Employees Need To Know

Di Crawford Errington Author

This is one of the most significant changes to New Zealand employment legislation in over two decades — and you have less than a week to influence it.

Have Your Say — Employment Leave Bill Submissions Close 14 April 2026

This is one of the most significant changes to New Zealand employment legislation in over two decades — and you have less than a week to influence it.

The Employment Leave Bill proposes to repeal and replace the Holidays Act 2003 entirely, shifting to an hours-based leave accrual system from day one of employment, introducing a new Leave Compensation Payment for casual and additional hours, and bringing major changes to how leave is calculated and paid.

As someone who works closely with New Zealand employers on payroll and employment obligations, I have real concerns about several aspects of this Bill — particularly the 12.5% Leave Compensation Payment for casual workers, the treatment of variable pay in leave calculations, and the cost burden on small businesses around parental leave accrual.

But my concerns aren't the only ones that matter. Yours are too.

The Education and Workforce Select Committee is accepting submissions until 14 April 2026. You don't need to be a lawyer or write an essay — a few sentences on what you support, what worries you, and what you'd like changed is enough. Every submission is read.

I've written a full breakdown of the key changes and what to consider when making your submission over on the Small Business Training Hub — including exactly how to submit.

👉 Read the full article and make your submission

Don't let this window close without your voice in it.

The information in this post reflects our interpretation of the Employment Leave Bill and does not constitute legal, financial, or professional advice. Readers are encouraged to seek independent advice specific to their circumstances.

Categories: : Employment, Payroll