# Addressing Holidays Act non-compliance Official source: https://www.employment.govt.nz/resolving-problems/addressing-holidays-act-non-compliance Scanned: 2026-06-07T03:31:31.402Z Use this as a current official guidance reference, not as a substitute for legal advice. ## Page Text Home Resolving problems Addressing Holidays Act non-compliance Resolving problems Resolving problems Problems in the workplace Misconduct Bullying, harassment and discrimination Illness and injury Migrant exploitation Work relationship problems How to resolve problems Protected disclosure Employment during and after disasters Addressing Holidays Act non-compliance Everyone Addressing Holidays Act non-compliance The Holidays Act is being reviewed — however, until new legislation comes into force, existing rules apply. Review of the Holidays Act The Holidays Act is currently being reviewed. To find out more visit the MBIE website. Holidays Act Review – MBIE (external link) Background to changes Issues of non-compliance with the current Holidays Act 2003 have been widely reported in the media and are well known to employers, employees, unions An organisation that supports and advocates for employees in the workplace. Unions bargain for collective agreements and help employees with information and advice about work-related issues. and professional advisors. While the Act provides some detail about entitlements and pay for holidays and leave, there remains scope for uncertainty, especially where there is variation in employees’ working arrangements or payment rates. In addition to this, application of the Holidays Act has often been inconsistent or incomplete. These issues have contributed to a high level of non-compliance with the Holidays Act, and many organisations in recent years have invested significant resources updating their payroll The process of paying employees. It can also refer to a list of paid employees, or the total amount of money paid to those employees. systems and correcting historical underpayments. Investigation and enforcement From November 2015 to 30 June 2020 the Labour Inspectorate A warranted employee of MBIE who ensures employment standards are met in the workplace. They can take enforcement action for non-compliance with employment standards. had a specialist team investigating and enforcing systemic Holidays Act issues. The work of that team, and the wider Inspectorate, resulted in more than $237 million in remediation payments being paid to 227,300 employees across numerous organisations during that period. The Inspectorate continues to investigate and enforce breaches of the Act, but no longer has funding for a specialist team. Employers’ obligations Until new legislation comes into force, existing rules apply. This means that employers must comply with the current Holidays Act, and ensure they are providing the correct entitlements and payments to employees. They are also obliged to pay employees for any historical underpayments that have occurred. The Labour Inspectorate urges any employers who have not yet done so to review their compliance with the Act and to pay any arrears. They should also let their employees and representatives know that this work is being done. Transparent communication ensures that an employer’s good faith An underlying principle in employment law which requires employers and employees to deal with each other honestly, openly, and in a fair and timely way. obligations are being met. Good faith Available resources A range of resources are available on the Employment New Zealand website to help employers meet their obligations. These resources include: The Holidays Act 2003 Guidance pdf 1.8 MB Position Statement - Estimating the Value of Holidays Act 2003 Underpayments pdf 370 KB Position Statement - Accounting for Overpayments through Holidays Act Re-calculations pdf 168 KB Remediation calculations checklist pdf 192 KB FAQs for employers completing Holidays Act remediation calculation pdf 581 KB Assessing your payroll system pdf 454 KB Holidays Act 2003 Assurance Framework pdf 372 KB Published: 17 June 2024 Last modified: 16 December 2024 Written for: Everyone Share this page: Print this page: