Source: EMA
The Employers and Manufacturers Association (EMA) supports the Government’s intention to change the proposed direction of Holidays Act reform, by introducing a simplified hours-based accrual model for annual leave.
The Minister for Workplace Relations and Safety, Brooke van Velden, announced the decision today to more than 300 EMA Members at the EMA Business Hub in Auckland. The presentation was also livestreamed to more than 500 EMA Members throughout the country.
EMA Head of Advocacy Alan McDonald applauded the Minister’s decision to direct her officials to go back to the drawing board.
“It’s important we get this right. Our Members have told us that the current Act makes it too complicated to calculate annual leave, public holidays, sick days, and bereavement leave. So, we applaud the Minister’s call for a simplified approach,” he says.
In September, the EMA was asked to review the exposure draft of a proposed new Holidays Act and provide feedback. However, after a significant round of consultation with EMA Members, the EMA and BusinessNZ recommended that the existing Act be scrapped entirely.
“Our Members agree that the current legislation is too complicated and costs them time and money,” says McDonald.
“Previous governments have tinkered with the existing legislation, but that hasn’t gone far enough to alleviate the problems faced by employers and businesses around the country.”
The Minister acknowledged that submitters, including the EMA, had called for a more simplified approach to Holidays Act reform.
“In my view, it is not enough to have ‘workable’ legislation, we should also strive to reduce complexity and compliance costs as much as possible,” she says.
“While shifting to hours-based accrual may require drafting a fundamentally different Bill, I believe investing the time and effort to do this will deliver superior improvements to both employers and employees.”
McDonald says that the EMA will keep its Members updated as the proposed changes to the Holidays Act make their way through the consultation process.
