Retail NZ Looks Forward To Public Consultation On Employment Leave Bill

Retailers will be buoyed by the news the Employment Leave Bill, which aims to simplify and modernise New Zealand’s leave system, has passed its first reading in Parliament, Retail NZ Chief Executive, Carolyn Young says.

"The proposed changes will make it fairer and more workable for both employers and employees," Carolyn Young says.

“An accrual-based system for annual and sick leave in hours rather than days will significantly reduce complexity and compliance costs for retailers, especially SMEs."

Other proposed changes, such as a single method to calculate annual holiday pay and proportional leave entitlements for part-time workers, will enable a more accurate and balanced approach to leave entitlements.

“Both employers and employees will benefit from these changes, for example having access to bereavement or family violence leave from the first day better reflects real-life circumstances for workers,” Ms Young adds.

“The introduction of this Bill marks a significant and muchneeded modernisation of NewZealand’s leave framework,” Paul Gillespie, Principal - Employment Lawyer at Ford Sumner Lawyers, says.

“If the Bill receives Royal Assent in its current form, there would be a 24month transition period, giving employers a critical window to update payroll systems, employment agreements, and internal processes to ensure compliance.”

“Importantly, the clearer statutory structure is expected to reduce the frequent compliance issues and inadvertent underpayments that have long-affected employers, providing greater certainty,” Mr Gillespie says.

Retail NZ says while there is a lot of good in this Bill, some of the proposed changes still require further consideration and clear justification.

"The proposed increase in Leave Compensation Payment (LCP) for casual employees from 8% to 12.5%, and access to annual leave at the full regular rate immediately after parental leave, risk unwarranted excess costs to businesses, particularly SMEs," Ms Young says. "We look forward to making recommendations around these provisions in our submission on behalf of New Zealand retailers."

Retail NZ remains committed to working with the Government so the final Act is practical, fair, and supports the longterm success of New Zealand’s retail sector.

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