Holidays Bill
The Holidays Bill introduced in Parliament today is more streamlined than the current legislation, but still requires
further improvement, says Business NZ.
Executive Director Anne Knowles says the advisory panel was successful in overcoming many technical issues, but it was
not its mandate to influence policy decisions and as a result the legislation would likely impose more costs and
penalties on employers in some areas.
"Providing for time and a half plus a day off for every public holiday worked by every staff member including
management, was a policy suggestion that would have hit employers' pockets hard: initial estimates were an additional 1%
to annual wage costs.
"Business NZ argued in the advisory group that there needed to be an opt-out clause to take account of people on
salaries and composite rates. Salaries don't usually include a daily or hourly rate, and already include a component for
working on public holidays. This would make it difficult to determine time and a half. The Explanatory Note to the Bill
expresses the intent that if an employee's remuneration already incorporates an amount for working on a public holiday
this will meet the obligation. However, we consider it should be expressed more clearly in the Act itself so that all
employers and employees understand clearly what is intended.
"Other aspects of the Bill, including pay-as-you-go and special leave provisions also need to be clarified, for example
3 days' leave for a bereavement may in some cases be unnecessary yet the entitlement to 3 days in every instance is
automatic. Not enabling employers to require proof of entitlement to such leave is also likely to cause some
difficulties.
"Seven-day industries will be hit when Christmas or New Year fall on a Saturday or Sunday as they will have to pay extra
not only for those days but for the Monday and Tuesday as well."
Ms Knowles said although the new Bill is simpler and more coherent than existing legislation, it could be simplified
further.
"It would be useful to gain further improvements through the select committee process, and we look forward to discussing
our suggestions with the Transport and Industrial Relations Select Committee."