Holidays and leave
The Holidays Act 2003 helps to promote balance between work and other aspects of employees’ lives.
The Holidays Act 2003 covers:
Calculating leave payments
- Assessing your payroll system [PDF 10 pages, 410KB]
- Information and examples of pay calculations for leave
Principles underpinning the Holidays Act 2003
New Zealand law on holidays and leave has been based on three key concepts:
- For the purposes of rest and recreation, all employees are entitled to enjoy four weeks’ paid annual holidays (or “annual leave”) each year.
- Public holidays are for the observance of days of national, religious, or cultural significance, which all employees should be entitled to take as leave, where possible. Where it is necessary for an employee to work on a public holiday that work should be specially rewarded.
- The employment relationship is both financial and human. Therefore, after a period of employment, it is reasonable to expect that employers will support employees with sick leave and bereavement leave when required.
The Holidays Act 2003 reinforces these principles by balancing fairness between employers and employees, and recognising that, in some areas, existing arrangements may meet these principles.
Payment for other holidays and leave
For public holidays, alternative holidays, sick leave and bereavement leave an employee is entitled to be paid either their relevant daily pay or average daily pay.