Source: Business Canterbury
Business Canterbury welcomes the passing of the Employment Leave Act, which replaces the Holidays Act after decades of complexity and uncertainty.
Chief Executive Leeann Watson says, “Congratulations must go to the Government and Minister van Velden for taking a piece of legislation that had been stuck in review for years, and delivering changes that will make leave calculations and management clearer and more workable for both employers and employees.”
“The leave calculations in the Holidays Act required an advanced calculus degree to navigate, and too often left both employees and employers unsure about the fairest way to determine entitlements.
“Payroll and leave legislation will always need to balance ease of use with fairness and practicality, but where the Employment Leave Act has landed is lightyears ahead of the outgoing Holidays Act. It removes another significant layer of red tape and will help businesses focus more on growth and on employing more people.
“Moving to a pro-rated minimum sick leave entitlement removes an absurdity within the previous law, where employees working fewer hours could receive disproportionately higher entitlements.
“As with the Holidays Act, the provisions in the new law set out minimum entitlements only. Employers will still be able to offer packages that go beyond the minimum requirements, and many already do.
“Continuity across political cycles will be important for employers. We hope that political parties will look at the progress made on the whole and not revert to repeal and replace conversations over the two-year implementation period.”
“The passing of the Employment Leave Act also nearly completes the key set of reforms the business community has long been calling for.
“The trifecta of policy changes businesses asked for ahead of the last election were resource management reform, health and safety reform, and Holidays Act reform, with two of three now passed by the Parliament.
“We look forward to working with the Government on the next set of improvements that will best support businesses to grow and hire more people.”
Business Canterbury, formerly Canterbury Employers’ Chamber of Commerce, is the second largest Chamber of Commerce in New Zealand and the largest business support organisation in the South Island. It advocates on behalf of its members for an environment more favourable to innovation, productivity and sustainable growth.