Holidays Act reform – let’s get it done once and done right
By EMA Head of Advocacy and Strategy Alan McDonald It’s hard to think of a piece of legislation that has needed reform for as long as the Holidays Act. Successive governments have been aware of longstanding concerns over the Act among workers, employers and payroll providers alike and promised to fix the issues. But they have also largely failed to deliver any meaningful change. Businesses have long been calling for the Holidays Act to be scrapped and rewritten, saying it’s too complicated and is costing businesses time and money. Unfortunately, the approach to addressing those issues has been largely to ignore the main problems and tinker with existing legislation, adding further complexity. The main issue for many employers was how the Act calculates annual leave, public holidays, sick days, and bereavement leave. With the rise of different styles of work, it was challenging to accurately figure out how much workers were owed. The previous government had a go at reforming the legislation, and in March 2020, Cabinet endorsed in full the 22 recommendations for improvements to the Act made by a tripartite Holidays Act Taskforce. However, the draft bill was far too complicated and didn’t see the light of day. Now, the coalition government is attempting to reform the legislation and an exposure draft on the Holidays Act Bill was released for targeted consultation in September. The EMA was one of the organisations tapped to review the exposure draft and provide feedback. We’ve worked with select members of the EMA to make sure we canvassed a range of opinions across the business community. We also recently tested out thinking with around 500 members on a webinar and they largely agreed with the direction of our approach as it provides something efficient and simple for employers to operate. We have been under a non-disclosure agreement as […]