Holidays Act Reform Update

Workplace Relations and Safety Minister Brooke van Velden says she has directed her officials to change the proposed direction of Holidays Act reform.

“The Government recently conducted targeted consultation on an exposure draft Bill which built on work that had started under the previous Government. The feedback I have seen indicates that the draft Bill is not going to solve the issues of the Act,” van Velden said.

“Not only have I heard from submitters that further simplification is possible, but there were some who believed that what we put out for consultation was more complex and had higher compliance costs than the legislation we have now.

“I want to get this right, and I have always said that this consultation would be genuine. It has become clear that a fundamental change is required to give employers and employees the simplicity and certainty they have been calling for.

“I have listened to the feedback and have asked officials to begin work on an hours-based accrual model for annual leave. I have also asked them to consider whether greater simplicity can be achieved for the core system if other models can be used for more complex work arrangements.

“In my view, it is not enough to have ‘workable’ legislation, we should also strive to reduce complexity and compliance costs as much as possible.”

Hours-based accrual has the potential to achieve a much greater focus on simplicity. “While shifting to hours-based accrual may require drafting a fundamentally different Bill, I believe investing the time and effort to do this will deliver superior improvements to both employers and employees.

“It is still my ambition to pass a new Act by the end of this term and I have tasked officials to begin work immediately on this new approach. I will be seeking Cabinet decisions in 2025,” van Velden said.