Marisa Bidois, CEO of the Restaurant Association, has outlined the need for a fairer, clearer future for workplace leave.
The government’s overhaul of the Holidays Act is one of the biggest workplace reforms New Zealand has seen in decades, and it’s already sparking lively debate across the hospitality sector. Many business owners are feeling uneasy about what the changes will mean in practice. Concerns about increased payroll complexity, the cost of implementation, and the potential for confusion are all valid. But when you step back from the initial anxiety, it becomes clear this reform is long overdue, and it promises to create a leave system that is fairer, clearer, and more workable for both employers and employees.
The current Holidays Act, which dates back more than 20 years, was written for a very different world of work, one where most people were employed full-time on fixed hours. Hospitality today looks nothing like that. It is a sector built on part-time, casual, and shift work, where rosters change weekly and employees often juggle multiple roles. The one-size-fits-all approach to leave entitlements simply hasn’t kept pace. It is why even major employers and payroll providers have struggled to interpret the rules correctly.
The new legislation fundamentally changes that. All types of leave, not just sick leave, will now accrue from day one and will be calculated in direct proportion to the hours worked. That means annual leave, bereavement leave, family violence leave, and alternative holidays will all grow steadily based on an employee’s actual work pattern. A full-timer will still receive the equivalent of four weeks’ annual leave and 10 sick days per year, but a part-timer working one day a week will no longer be entitled to the same as someone working five.
This proportional approach is more equitable for employers, who have long faced the imbalance of part-time staff receiving disproportionate leave entitlements. It also benefits employees, who will no longer have to wait six or twelve months before building up their leave balance, a significant change for a workforce where high turnover and short-term roles are common.
Flexibility is another welcome shift. Leave will now be able to be taken in hours rather than full days, allowing workers to manage their wellbeing and family commitments more easily without sacrificing more time than necessary. The rules around public holidays and alternative holidays will also be clarified, removing grey areas that have long been a source of disputes.
Of course, the transition will take work. Payroll systems will need updating, managers will need training, and some businesses will face upfront costs to adjust. But the payoff is a simpler, more transparent system that reflects the realities of modern hospitality. It will make leave calculations more predictable, reduce the risk of costly payroll errors, and ultimately support stronger, more trusting employment relationships.
For many years, the Holidays Act has been one of the topics the Restaurant Association receives the most queries about from members. It’s consistently been one of the trickiest pieces of legislation to navigate, and these reforms will be no different. Our team will be here to guide members through the changes, explain what they mean in practice, and provide practical tools to help businesses get it right. With a raft of new employment and immigration legislation on the horizon, now is an ideal time to become a member and make sure you have expert advice on hand when you need it most.
Change always brings a degree of discomfort. But in a sector defined by flexibility and diversity, a leave system that recognises and supports that reality is not just overdue, it is essential. The new Holidays Act is a step towards a fairer future for the people who power our industry and the businesses that employ them.
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