Current stage: Reported back from select committee — awaiting second reading
- March 2026: The Employment Leave Bill was introduced and passed its first reading, then referred to the Education and Workforce Committee.
- 14 April 2026: Public submissions closed.
- Mid-July 2026: The committee reported back to the House, recommending unanimously that the Bill be passed, with only minor amendments recommended — the core reforms, including the shift to hourly accrual, remain unchanged.
- Next steps: The Bill will now proceed through its second and third readings in Parliament, before Royal Assent.
Timing: The Government has signalled its intention to pass the legislation before the election in November. Once it does pass, there's still a lead time before it actually bites — a 24-month implementation period between when the Bill is passed and when it comes into force, giving employers and payroll providers time to adjust systems.
What it does, briefly: It repeals the Holidays Act 2003, replacing it with hour-based accrual of annual and sick leave from day one of employment, a 12.5% upfront leave compensation payment for casual/additional hours in lieu of accrual, and a new "Otherwise Working Day" test for public holidays.
One thing worth flagging; given the November election timing, if it doesn't clear its remaining readings before then, its fate would depend on the outgoing/incoming government's priorities — though the unanimous select committee recommendation makes that less likely to stall.