Fix the principle at the heart of the problem

Fix the principle at the heart of the problem

Business NZ will call for 'relevant daily pay' to be replaced by 'ordinary pay' in select committee hearings on the Holidays Amendment Bill today.

Business NZ Chief Executive Simon Carlaw says the definition is at the heart of the problems with the new holidays legislation.

"This definition inflates the base level used to calculate holiday pay and sick leave, arbitrarily imposing large cost increases on businesses, while also increasing the complexity of calculating all holiday pay, and reducing the incentive to work."

Mr Carlaw said 'ordinary pay' had been the accepted basis for calculating holiday pay for 50 years until 'relevant daily pay' was suddenly introduced without consultation into this year's legislation.

Business NZ will also ask the select committee to consider changing 'Mondayisation' rules to reduce other business cost blowouts caused by the new Act.

Business NZ presents its submission at 10.10 a.m. in Room G.002, Parliament Buildings

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