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The Holidays Act is being replaced in 2028

Your PayBriefSource dated 7 August 2026

What happened

The Employment Leave Act 2026 has passed into law. It will replace the Holidays Act on 6 August 2028, and it covers annual leave, sick leave, family violence leave, bereavement leave, public holidays and alternative holidays.

Until that date the Holidays Act stays in force. Employment New Zealand says employers cannot use the new rules early.

What it means for you

Your leave and holiday pay are worked out under the current rules for the next two years. Employment New Zealand says guidance for employers, payroll providers and employees will come out over the coming months.

Our take

Two years is a long runway, so there is nothing to do today. The thing to watch is how holiday pay is calculated, because that is where most payslip mistakes happen now. We will update our holiday pay tool and guide when the detail is published, and not before.

How sure we are. High that the Act has passed and the 6 August 2028 start date, because both come straight from Employment New Zealand. The detailed new rules are not in the guidance yet, so we have not described them.
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Summarised in our own words by Streetwise from the official page above. General information only, not legal or financial advice.