Navigating the Holidays Act can be a challenge for schools juggling the complexities of holiday pay calculations, unique leave arrangements, staff with multiple roles and more.
In a bid to alleviate these challenges, the Government has been working on a reform project to simplify the Holidays Act and reduce compliance costs. However, after targeted consultation in late 2024 revealed that the proposed Bill fell short of addressing key issues, the Government has decided to revisit its approach. The Minister has emphasised the importance of simplicity and instructed officials to develop an hours-based accrual system for annual leave, with a goal to pass a new Act by the end of the current Parliamentary term.
When this reform comes into effect, it will no doubt be welcome to payroll professionals at independent schools who grapple with the current Act’s complexities.
That said, the new legislation will only apply prospectively, meaning employers need to ensure existing leave calculations are correct according to the current Act to avoid non-compliance issues and staff losing out on their leave entitlements.
To help you address any existing discrepancies in your leave management under the current Holidays Act, our experienced Datapay team has created a clear step-by-step guide to pinpoint and resolve any non-compliance issues. Take a look at our article for a simple five-step process for Holidays Act compliance, from reviewing your pay processes to communicating with staff and undertaking corrective actions.
Five steps to Holidays Act compliance
About Datapay
Datapay is a cloud-based payroll solution tailored specifically for medium to large organisations in New Zealand. Backed by Datacom’s 60 years of experience in providing payroll solutions, Datapay serves over 1,300 organisations, empowering schools to efficiently manage, track, and administer leave entitlements and pay across New Zealand.
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