Holidays Act 2003

The Ministry of Business, Innovation and Employment (MBIE) are continuing to investigate payroll systems to assess whether they are truly Holidays Act compliant.

Those being audited by MBIE need to ensure that their payroll system is Holidays Act compliant, or identify that the payroll system is not compliant, start provisioning for back pay and implement a payroll system that is.


What is the Holidays Act?

As outlined by the New Zealand Government, the purpose of the Holidays Act is to promote balance between work and other aspects of employees’ lives and, to that end, to provide employees with minimum entitlements to

  • Annual holidays to provide the opportunity for rest and recreation
  • Public holidays for the observance of days of national, religious, or cultural significance
  • Sick leave to assist employees who are unable to attend work because they are sick or injured, or because someone who depends on the employee for care is sick or injured
  • Bereavement leave to assist employees who are unable to attend work because they have suffered a bereavement

How do I ensure my payroll system is compliant?

The Ministry of Business, Innovation and Employment have created a range of documents designed to assist employers and payroll practitioners to check their payroll system complies with the Holidays Act 2003. Below, we have outlined a few of which you may find helpful, including the official reprint of the Holidays Act 2003, how to address non-compliance, a specialist interview and a checklist from MBIE to help you assess your payroll system.