27/07/2026
Employment Leave Bill Update: What's Changed?
The Employment Leave Bill has now been reported back from the select committee and is awaiting its second reading in Parliament.
Here's where things currently stand:
📅 March 2026 – The Bill was introduced, passed its first reading, and referred to the Education and Workforce Committee.
📅 14 April 2026 – Public submissions closed.
📅 Mid-July 2026 – The select committee unanimously recommended the Bill be passed, with only minor amendments. Importantly, the key reforms remain unchanged, including the move to hour-based leave accrual.
What happens next?
The Bill will now move through its second and third readings before receiving Royal Assent.
The Government has indicated it intends to pass the legislation before the November election. Once passed, there will be a 24-month implementation period, giving employers and payroll providers time to update their systems.
Key changes proposed
The Bill would repeal the Holidays Act 2003 and introduce:
✅ Hour-based accrual of annual and sick leave from day one of employment.
✅ A 12.5% upfront leave compensation payment for casual and additional hours worked instead of leave accrual.
✅ A new "Otherwise Working Day" test for public holidays.
One thing to keep in mind: If the Bill doesn't complete its remaining readings before the election, its progress will depend on the priorities of the incoming government. That said, the select committee's unanimous recommendation makes it less likely that the reforms will stall.
These changes represent one of the biggest overhauls of New Zealand's employment leave legislation in years. If you're an employer, payroll provider, or HR professional, now is a good time to start understanding what the reforms could mean for your business.
Interested in learning more? Read the full article below.
https://www.employers.co.nz/employment-leave-bill-update-july-2026-blog.aspx
