Rule changeNew ZealandHR leaders

Employment Leave Act replaces the Holidays Act

Takes effect August 6, 2028By WorkblissUpdated October 19, 2026

What’s happening

The Employment Leave Act 2026 (Royal Assent August 6, 2026) switches annual and sick leave to hourly accrual from day one, adds a 12.5% upfront leave payment for casual and additional hours, and uses one hourly rate for all leave. Employers can't adopt it early.

What to do

Start 2027 payroll system and policy projects now, and fix any Holidays Act underpayments before the switch.

How Workbliss can help

Workbliss digital campaigns can explain new family and leave benefits to employees and managers in every location.

Plan support for your teams

Source

mbie.govt.nz. Checked October 19, 2026.