Hi everyone!
You may have seen the news: the Holidays Act 2003 is on its way out. The new Employment Leave Act 2026 received Royal Assent on 6 August 2026 and will replace it, with most of the new framework coming into force on August 2028.
We know that's a while off, but given how long this reform has been talked about, we wanted to get ahead of the questions.
The short version:
- Annual and sick leave move to an hours-based accrual system, tied to standard hours worked
- Working hours are split into standard, additional and casual categories
- A new Leave Compensation Payment (12.5% of ordinary hourly rate) applies to hours that don't accrue leave in the usual way
- Public holiday tests, pay statements and record-keeping requirements are all getting clearer rules
We've put together a full breakdown here: The Employment Leave Act 2026 – a replacement for the NZ Holidays Act 2003
Nothing changes in your payroll today – the current Holidays Act still applies until the new Act takes effect. Our product and payroll teams are already working through what this means for MYOB's payroll solutions, and we'll post updates here as the guidance from MBIE and Employment New Zealand develops.
Got questions? Drop them below and we'll do our best to answer, or point you to where the detail lives once it's confirmed.
