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March 25, 2026
 

The Government has introduced the Employment Leave Bill, which would change the legal entitlements to annual and sick leave, especially for people working part time, irregular hours or paid irregular rates.

This bill will not override collective agreements

If this bill become law, it will set the legal minimum provisions for leave. We can still negotiate better terms for leave in collective agreements, and the law won’t override existing collectives.

What the bill would change

The table below summarises key changes proposed by the Employment Leave Bill.

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Current law Proposed law What this change means
Everyone is guaranteed at least four weeks annual leave and ten days sick leave a year. You earn annual and sick leave for “standard” hours you’re required to work under your employment agreement.

 

You will not earn leave for additional hours worked, instead you get a 12.5% “leave compensation payment”.
People who regularly work over their “standard hours” will get less leave.

 

E.g. Someone who works 30 standard hours and 10 overtime hours a week will get 25% less sick leave than someone who works 40 standard hours a week.

Leave pay is calculated so you’re paid at least as much on leave as you are when you’re working. You will be paid a base rate plus any fixed allowances that you get every pay. Pay cuts for anyone who gets overtime, allowances you don’t get every pay, extra pay for working anti-social hours, commissions, or bonuses.
ACC compensation does not affect your annual or sick leave. You would not earn annual or sick leave while you’re on ACC compensation. Anyone who’s badly injured ends up with less leave.
You get a day in lieu if you work at all on a public holiday. You would get an hour in lieu for every hour you work on a public holiday. If you work a shorter shift on a public holiday than you normally do, you will no longer get a full day off to compensate.

Submit on the bill by 14 April

Submit on the Employment Leave Bill before the consultation deadline 14 April. You can submit as an individual or with friends, colleagues, or family. 

If you would like to be part of a submission from delegates at your workplace, or have your voice included in the PSA’s submission, then you can share your thoughts with us.

Suggested points to include in your submission

  • I don’t support this bill because it would mean workers won’t get annual leave or sick leave for any extra hours they work. Workers deserve leave for all the hours they work.
  • I don’t support this bill because it would mean some workers will be paid less when they go on leave than they would if they were working. Workers need to be paid as much as they go on leave as they would if they were working.
  • Money is no substitute for leave.
  • If some workers can’t afford to take sick leave, then everyone pays the cost as sickness spreads.

Your submission will have more impact if you also do an oral submission.

Can I submit as a worker in public, community, or health services, local government or the State Sector?

People working in community and public services have the same rights as others to submit to select committees.  You can do it without compromising your employment obligations. The main things to remember are:

  • Do this in your own time.
  • Don’t suggest you’re representing or speaking for your employer.
  • Don’t use information you only have access to because of your job. Public information is fine to use.

If you chose to present your submission orally, do this in your own time and let your manager know. They should support your right to do this.

If you worked directly on the Bill or work to advise ministers on matters relating to the Bill, you should not submit as an individual.

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