The Government has confirmed that the Holidays Act 2003 will be repealed and replaced.

The new law aims to deliver more transparent and workable rules for employers, while ensuring employees continue to receive their correct entitlements.  The Holidays Act has long been criticised for its complexity, creating compliance costs and confusion across workplaces.

This reform is about restoring balance – protecting the mana of kaimahi while giving businesses greater certainty.

For Māori businesses, where whanaungatanga and fairness are central values, clearer employment law supports stronger relationships and smoother operations.  It reduces the time and resources spent on administration, allowing us to focus on growing our pakihi and supporting our people.

Draft legislation is expected to be introduced in early 2026, with the Government signalling its ambition to have the new law passed before the next general election.  Once the Bill is passed, there will be a 24-month transition period before the new rules take effect.

MBIE will lead consultation with employers, unions, and stakeholders as drafting progresses.  Poutama will keep whānau informed as the legislation moves through Parliament, so Māori businesses are prepared for the changes ahead.

👉 Find out more on MBIE’s website