In Support of Announced Holidays Act Changes

2 Mar, 2021

The Government has announced acceptance of all twenty-two of the recommended changes to the Holidays Act from the appointed Task Force.  In doing so it recognized the “highly complex” nature of the Holidays Act. It believes the new recommendations will “improve the current Act by providing a clear and transparent set of rules for providing entitlements to, and payments for, holidays and leave.”

As a responsible provider of both Workforce Management Software and business process outsource services in payroll, AMS was able to contribute to the process during the consultation. We fully support any legislative change that simplifies the employer’s ability to manage employment and provides appropriate transparency for employees.  

Holidays Act changes will impact everyone using our Workforce Management software including our AMS Outsource customers. The Government will be going through the full parliamentary process to introduce these changes and expects to have introduced legislation in 2022.  

Next steps for AMS Workforce management

We understand one of the next steps is for Government to engage with the payroll industry to work through the challenges of implementing the recommendations to ensure a successful move to the new legislation.   As a provider to many of NZ’s largest organisations, we welcome this approach - and look forward to engaging in and supporting this process.

There are a number of significant changes included in the recommendations and we are going to be working hard behind the scenes to ensure everyone using AMS Workforce Management can benefit as soon as they are released.  

Some of the key Holidays Act changes to be made, include:

  • Clear and transparent, rules and definitions, for determining, calculating, and paying leave. It means employers will have greater confidence in meeting their obligations under the Act and employees in receiving their correct entitlements. 
  • Employers and employees will both benefit from payslips being required to detail used and remaining leave entitlements for each pay day and how these are calculated. 
  • From day one, eligible employees will be entitled to bereavement leave and family violence leave and will begin accruing sick leave. 
  • Bereavement leave is being expanded so employees can access three days leave for more family members, including cultural family groups and updated family structures.
  • The parental leave override will be removed, meaning employees returning from parental leave will be paid at their full rate for all their annual holidays.

If you haven’t had chance to review the Taskforce Recommendations, full coverage is available here on the MBIE website.  If you have any questions or concerns in the meantime, please ask your AMS Account manager or contact support@ams.co.nz