Employment Leave Bill

The New Zealand Government has released the Employment Leave Bill, proposing to replace the Holidays Act 2003 with a simpler, more workable framework for employment leave.

The Bill introduces significant changes for employers, including new approaches to leave accrual and payment, enhanced record‑keeping requirements, and a structured transition to the new regime. It also outlines an optional statutory remediation process to address any unresolved Holidays Act liabilities.

What employers should know

Our overview summarises:

• The key changes proposed under the Employment Leave Bill
• Expected timeframes for consultation, enactment and transition
• Practical considerations for organisations as they prepare for the new framework
• What to think about now in relation to workforce arrangements, payroll and employment agreements

As the legislation progresses through consultation and enactment, early understanding and planning will be critical.

KPMG can support organisations at every stage of the Employment Leave Bill journey — from understanding the proposed changes through to implementation and transition.

Our specialists can help you:

• Interpret the Bill and understand its implications for your workforce and operating model
• Assess impacts on payroll, leave accrual, record‑keeping and employment agreements
• Prepare for transition to the new framework, including planning and sequencing key changes
• Evaluate options in relation to the statutory remediation process for unresolved Holidays Act liabilities
• Support consultation, change management and communications with employees
• As the legislation progresses, early planning can help reduce risk, manage cost and avoid disruption.

Get in touch to understand what the Employment Leave Bill could mean for your organisation and how to prepare.