Holidays Act
- Business Central
- Oct 28, 2024
- 1 min read
Updated: Nov 5, 2024
Reforming the Holidays Act will take longer, but Business Central has already been party to consultations on the Exposure Draft of the Act.
The Exposure Draft was a way for the Ministry to test its thinking through consultation with selected organisations but was done under a non-disclosure agreement, limiting our ability to share with Members.
However, the direction of travel is very much towards a simple accrual model, making it easier for employers to calculate payroll and for employees to understand their holiday and sick leave entitlements. Sick leave will be pro rata for part-time workers.
That’s a very simple version of what will certainly be more complex legislation.
We expect the draft legislation to be available for wider consultation in the first quarter of next year and will provide more detailed analysis and assistance for Members on submitting in writing or to the Select Committee on that draft.
The aim is to have that draft legislation finalised and passed through committee and hearing stages by mid-2025 for implementation about 18 months later.
That timeframe will allow the rewriting of software and updating payroll systems.
Reforms expected for the Holidays Act along with other changes and clarifications to employment law.