The Employment Leave Bill has passed its first reading in parliament, opening the door for industry-wide discussion.
Retailers will be buoyed by the news that the Employment Leave Bill, which aims to simplify and modernise New Zealand’s leave system, has passed its first reading in Parliament, Retail NZ Chief Executive, Carolyn Young said.
"The proposed changes will make it fairer and more workable for both employers and employees," Carolyn Young said.
“An accrual-based system for annual and sick leave in hours rather than days will significantly reduce complexity and compliance costs for retailers, especially SMEs."
Other proposed changes, such as a single method to calculate annual holiday pay and proportional leave entitlements for part-time workers, will enable a more accurate and balanced approach to leave entitlements.
“Both employers and employees will benefit from these changes, for example having access to bereavement or family violence leave from the first day better reflects real-life circumstances for workers,” Young added.
“The introduction of this Bill marks a significant and much-needed modernisation of New Zealand’s leave framework,” Paul Gillespie, Principal Employment Lawyer at Ford Sumner Lawyers, said.
“If the Bill receives Royal Assent in its current form, there would be a 24month transition period, giving employers a critical window to update payroll systems, employment agreements, and internal processes to ensure compliance.”
“Importantly, the clearer statutory structure is expected to reduce the frequent compliance issues and inadvertent underpayments that have long-affected employers, providing greater certainty,” Gillespie says.
Retail NZ said while there is a lot of good in this Bill, some of the proposed changes still require further consideration and clear justification.
"The proposed increase in Leave Compensation Payment (LCP) for casual employees from eight percent to 12.5 percent, and access to annual leave at the full regular rate immediately after parental leave, risks unwarranted excess costs to businesses, particularly SMEs," Young said.
"We look forward to making recommendations around these provisions in our submission on behalf of New Zealand retailers."
Retail NZ remains committed to working with the Government, so the final Act is practical, fair, and supports the long-term success of New Zealand’s retail sector.
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