[1] However, in 2016 MBIE found problems with underpayments on holiday pay due to the complex act, and new legislation is now not expected to be introduced until 2024.
This removes any unfairness in requiring an employee to supply a costly medical certificate when taking a short time off work.
The Holidays Act describes sick leave entitlement in days and does not provide for smaller units.
In 2012 New Zealand Post was found to have incorrectly paid employees Relevant Daily Pay based on their staff's rostered hours, rather than Average Daily Pay, which also takes into account occasional unrostered overtime that an employee might have worked, had they not been absent.
The law firm Simpson Grierson,[13] is leading a working group that is striving for changes to make the Holidays Act simpler to apply.
The Taskforce issued an interim report in December 2018, then made 22 final recommendations in October 2019, which were accepted by the government in February 2021 but have not yet been enacted by changes in law.
One of the recommendations is the ability for employees to take holidays in advance on a pro rata basis, referenced to the length of service.
The government expected to introduce legislation based on the recommendations into parliament in early 2022, but has since indicated that no changes will be made until after general elections in November 2023.