NZ Holidays Act 2003: All Leave Types Explained

The Holidays Act 2003 is the statute that governs annual leave, public holidays, sick leave, bereavement leave, and family violence leave in New Zealand. It applies to every employee, regardless of full-time, part-time, or casual status. Although the Employment Leave Bill 2026 is progressing through Parliament to replace the 2003 Act, the Holidays Act 2003 remains the operative law. This article walks through every leave type — entitlements, calculation methods, payment rules, and common pitfalls.

The Statutory Framework

The Holidays Act 2003 governs five core leave categories:

Plus parental leave (a separate statute — Parental Leave and Employment Protection Act 1987) and KiwiSaver-related leave for KS3 information access.

Holidays Act 2003: https://www.legislation.govt.nz/act/public/2003/0129/latest/DLM236387.html

Employment NZ leave hub: https://www.employment.govt.nz/leave-and-holidays/

1. Annual Holidays — s.16

Entitlement

Under Holidays Act 2003 s.16, every employee is entitled to at least 4 weeks’ paid annual holidays after 12 months’ continuous employment.

A “week” is calculated based on the employee’s ordinary working pattern:

• Employee working 5 days a week → 4 weeks = 20 working days
• Employee working 4 days a week → 4 weeks = 16 working days
• Employee working irregular hours → 4 weeks = the number of days the employee would normally work in 4 weeks

Pay rate

Under Holidays Act 2003 s.21, annual holiday pay is the greater of:

• Ordinary weekly pay (OWP) at the time the leave is taken — the amount the employee would receive in their normal pay for that period
• Average weekly earnings (AWE) over the 12 months immediately before the leave — total gross earnings ÷ 52

The greater-of test protects employees with variable hours or commission-based pay, ensuring annual leave is not undervalued.

Cash-up

Under Holidays Act 2003 s.28B, employees may request a “cash-up” of up to 1 week of annual leave per year. The employer must consider the request in good faith but may decline. Cash-up of more than 1 week is not permitted.

Carry-over

Annual leave carries over indefinitely under s.16(3) until taken or paid out at termination. Employers cannot cap or “use it or lose it” annual leave (subject to industry-specific exceptions).

On termination

Under s.24, on termination the employee is entitled to:

• 8% of gross earnings for the period since the last anniversary (in respect of leave not yet entitled)
• Plus payment for any unused entitled leave at OWP/AWE (greater of)

2. Public Holidays — s.44

The 12 Public Holidays

Under Holidays Act 2003 s.44:

1. New Year’s Day (1 January)
2. Day after New Year’s Day (2 January)
3. Waitangi Day (6 February)
4. Good Friday (variable)
5. Easter Monday (variable)
6. ANZAC Day (25 April)
7. Sovereign’s Birthday (1st Monday of June)
8. Matariki (variable date — set under the Matariki Public Holiday Act 2022)
9. Labour Day (4th Monday of October)
10. Christmas Day (25 December)
11. Boxing Day (26 December)
12. Province Anniversary Day (regional)

Mondayisation — s.45A

If New Year’s Day, 2 January, Waitangi Day, ANZAC Day, Christmas Day, or Boxing Day falls on a Saturday or Sunday and is not otherwise a working day for the employee, the holiday is observed on the following Monday or Tuesday. This protects employees from losing public holidays when they fall on non-working days.

Pay for public holidays

Under Holidays Act 2003 s.49:

• If the public holiday is a day the employee would otherwise have worked: paid day off at OWP
• If the employee works on the public holiday: paid at time-and-a-half for the time worked, AND if the day would otherwise have been worked, an alternative holiday (“day in lieu”) under s.56

”Otherwise working day” test — s.12

Whether a day is an “otherwise working day” is determined by the employee’s working pattern. Regular full-time employees: the day is a working day if it falls on a normal scheduled day. Casual/irregular employees: more complex test based on past pattern.

3. Sick Leave — s.65

Entitlement

Under Holidays Act 2003 s.65, employees become entitled to sick leave after:

• 6 months’ continuous employment, OR
• 6 months of working an average of 10 hours per week (with at least 1 hour each week, or 40 hours per month)

The annual entitlement is 10 days’ paid sick leave per 12-month period (increased from 5 to 10 days from 24 July 2021).

Carry-over

Up to 20 days can be carried over (s.66) — i.e. an employee can accumulate up to 20 days of unused sick leave.

Use

Sick leave can be used for:

• The employee’s own illness or injury
• Caring for a spouse, partner, dependent child, or other person dependent on the employee

Medical certificate

Under s.68, the employer may require a medical certificate for sick leave of 3 or more consecutive calendar days. For shorter periods, a medical certificate may be required only if the employer pays the cost.

Pay rate

Sick leave is paid at the relevant daily pay (s.68A) — the amount the employee would have received had they worked that day.

4. Bereavement Leave — s.69

Entitlement

Under Holidays Act 2003 s.69, an employee is entitled to bereavement leave on:

• 3 days’ paid leave for the death of a close family member: spouse/partner, parent, child, sibling, grandparent, grandchild, or spouse/partner’s parent
• 1 day’s paid leave for any other death where, in the employer’s opinion, the employee has a significant connection with the deceased

The 1-day option recognises tikanga Māori — whānau, hapū, and iwi connections may extend bereavement entitlement to relationships that wouldn’t qualify under European-tradition definitions.

Payment

Paid at relevant daily pay (similar to sick leave).

Eligibility

Available immediately on starting employment — no continuous service requirement.

5. Family Violence Leave — ss.72A–72H

Entitlement

Under Holidays Act 2003 ss.72A–72H (introduced by the Domestic Violence — Victims’ Protection Act 2018, effective 1 April 2019), employees affected by family violence are entitled to:

• 10 days’ paid family violence leave per 12-month period
• After 6 months’ continuous employment

Use

Family violence leave can be used to:

• Find a safe place to stay
• Move household
• Attend court or police
• Access support services (counselling, medical)
• Care for affected children

Privacy

Under s.72D, the employee can request short-term flexible working arrangements without disclosing details. The employer cannot demand evidence beyond what is reasonable.

Definition

“Family violence” is defined by reference to the Family Violence Act 2018 — physical, sexual, psychological abuse and economic abuse from a family member.

6. Parental Leave — PLEPA 1987

Although technically governed by the Parental Leave and Employment Protection Act 1987 (not the Holidays Act 2003), parental leave intersects with annual leave entitlements:

Eligibility tied to either 6 months’ (≥10 hrs/wk) or 12 months’ (≥10 hrs/wk) continuous employment.

Annual leave continues to accrue during paid parental leave (s.27 PLEPA 1987).

7. Long Service Leave

NZ does not have a statutory long-service leave entitlement comparable to Australia. Some collective agreements and individual employment agreements provide long-service leave as a contractual benefit.

8. Annual Leave on Termination

Under Holidays Act 2003 s.24, on termination:

1. Pay out all entitled annual leave at the greater of OWP and AWE
2. Pay an 8% of gross earnings payment for the period from the last anniversary up to termination (in respect of leave not yet entitled)

The 8% rule reflects the proportional accrual of the next 4-week entitlement (4/52 ≈ 7.7%, rounded to 8%).

Common Holidays Act Errors

The Employment Leave Bill 2026

The Employment Leave Bill 2026, introduced 9 March 2026, is intended to simplify the Holidays Act 2003. Until Royal Assent and commencement, the 2003 Act applies in full.

Operators should monitor https://www.mbie.govt.nz/business-and-employment/employment-and-skills/employment-legislation-reviews/holidays-act-reform for transition information.

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Disclaimer

Legal information, not legal advice. MmowW Scrib🐮 is operated by a licensed Gyoseishoshi (行政書士) office in Japan. We are not New Zealand lawyers or licensed immigration advisers.

Sources

• Employment NZ leave and holidays: https://www.employment.govt.nz/leave-and-holidays/
• Holidays Act 2003: https://www.legislation.govt.nz/act/public/2003/0129/latest/DLM236387.html
• MBIE Holidays Act reform: https://www.mbie.govt.nz/business-and-employment/employment-and-skills/employment-legislation-reviews/holidays-act-reform
• Employment NZ: https://www.employment.govt.nz/