The New Zealand government has reached a significant milestone with the approval of a draft legislation aimed at fixing the longstanding issues with the Holidays Act. Thousands of employers have been grappling with the complexities of the act, resulting in billions of dollars in back pay owed to employees due to incorrect application over the years.
The Need for Change
The Holidays Act has been a source of confusion and frustration for both employers and workers. Problems with the act have led to widespread non-compliance, necessitating expensive and time-consuming corrections. In response, the government has prioritized improving the legislation, focusing on making it more straightforward and workable for all parties involved.
Government’s Approach
Minister for Workplace Relations and Safety, Brooke van Velden, emphasized the importance of collaboration in refining the legislation. “This government will improve the Holidays Act with the help of businesses, workers, and payroll providers who will be affected by changes to the act,” she stated. The goal is to allow business owners and workers to focus on their core activities without being burdened by complex compliance requirements.
Consultation Process
The exposure draft of the bill is set to go out for consultation, marking a key step toward new legislation. However, the government acknowledges that the draft is not a finished product. There will be further opportunities to refine and improve the legislation based on feedback from those who will be directly impacted.
The Ministry of Business, Innovation and Employment (MBIE) has selected 100 groups or individuals from 700 registered participants to provide input during the consultation process. Special attention will be given to Health NZ and the Ministry of Education, both of which have experienced significant payroll challenges in the past.
Public Participation
While only a selected group will participate in the initial consultation, Minister van Velden assured that all New Zealanders will have the opportunity to voice their opinions when the bill proceeds to the select committee stage. “I want to make clear that all Kiwis will be able to have their say when the bill goes through select committee,” she added.
This initiative represents a crucial step in addressing the issues that have plagued the Holidays Act, aiming to create a more efficient and understandable framework for employers and employees alike.