Upcoming Changes to the Holidays Act (NZ)

Changes to New Zealand’s Holidays Act are currently being proposed, with the aim of simplifying how leave is accrued, tracked, and paid.

While these changes are not yet in effect, they may significantly impact how payroll is processed in the future.

What’s changing? (at a glance)

The proposed updates include:

• Leave accrual in hours instead of weeks
  Annual and sick leave would accrue progressively based on hours worked
• Consistent leave calculations
  Leave may be paid using a single hourly rate, rather than multiple calculation methods
• Sick leave accrual changes
  Instead of receiving a set number of days per year, sick leave would build up over time
• Clearer handling of additional hours
  Extra hours may be compensated separately, rather than impacting leave balances
• Improved record keeping requirements
  Employers may need to track leave and hours in more detail

When will this happen?

• The proposed legislation was introduced in March 2026
• It is expected to progress before the next election
• A transition period of approximately 24 months is anticipated once passed

What this means for you

If implemented, these changes may require:

• Updates to payroll configurations
• Changes to how leave balances are tracked
• Adjustments to reporting and compliance processes

What should I do now?

You don’t need to take immediate action, but we recommend:

• Review your current payroll setup
  Ensure employee classifications and leave settings are accurate
• Keep an eye on leave balances and calculations
  Especially for employees with variable hours or complex arrangements
• Be prepared for change
  These updates may require adjustments to how your business manages leave and payroll
• Stay informed
  We’ll continue to share updates as more information becomes available

How Roubler will support you

Roubler is actively monitoring these changes and will ensure the platform is updated to align with any new legislation.

As more information becomes available, we will:

• Share updates and guidance
• Support any required configuration changes
• Help ensure your payroll remains compliant

Roubler Support email: support@roubler.com

Roubler Support phone: 1300 833 137