Cabinet Approves Consultation Draft of Holidays Act Reform Bill

"This Government is committed to improving the Holidays Act with input from businesses, workers, and payroll providers who will be directly affected by the changes," said Ms. van Velden.

Minister for Workplace Relations and Safety Brooke van Velden announced that Cabinet has approved the consultation exposure draft of the Bill to reform the Holidays Act. The draft will be released next week to selected participants for consultation.

"This Government is committed to improving the Holidays Act with input from businesses, workers, and payroll providers who will be directly affected by the changes," said Ms. van Velden.

She emphasized the importance of this reform, noting that both employers and workers have identified it as a priority. "I want to ensure that business owners and workers can focus on what they do best, rather than spending valuable time and resources trying to understand and comply with the legislation," she stated.

The draft Bill is a preliminary step toward new legislation, and van Velden acknowledged that there are further opportunities to simplify and enhance the workability of the Act. "This exposure draft Bill is a step on the way to new legislation, but it is by no means a finished product. We are open to considering alternatives that go beyond what’s in the draft Bill," she added.

The Ministry of Business, Innovation and Employment (MBIE) has selected 100 organizations and individuals to participate in the Government’s targeted consultation. This group was chosen to provide a diverse range of perspectives and technical expertise, particularly from those with experience in implementing the Holidays Act in payroll and business systems.

"We received over 700 registrations of interest from people and organizations eager to participate in this consultation, with significant interest from small businesses. This demonstrates how crucial this reform is to New Zealanders," said van Velden.

MBIE will also collaborate with public service agencies, including Health NZ and the Ministry of Education, to assess the impacts of the draft Bill. These sectors have faced historical challenges that have led to large-scale remediation programs, making their input vital to the reform process.

Van Velden reassured those not selected for this round of consultation that they will have an opportunity to provide input when the Bill is introduced to Parliament and goes through the Select Committee process.

"The feedback from this targeted consultation will help the Government determine whether further policy work is needed before the Bill is formally introduced to Parliament," she concluded.