Brooke van Velden. Photo: RNZ / REECE BAKER
Cabinet has approved a draft of legislation designed to fix the troublesome Holidays Act.
Thousands of employers have had to pay, or are still arranging to pay, billions of dollars in back pay due to problems with applying the act for years.
The government says it has reached a "milestone" now the exposure draft of the bill is ready to go out to consult on. A new law was meant to be in place at least two years ago.
"This government will improve the Holidays Act with the help of businesses, workers, and payroll providers who will be affected by changes to the act," Minister for Workplace Relations and Safety Brooke van Velden said.
"I have heard loud and clear from employers and workers that fixing this legislation is a priority for them and it is also a priority for me. I want to ensure that business owners and workers can focus on what they do best, rather than spending valuable time and resources trying to understand and comply with the legislation.
"This exposure draft bill is a step on the way to new legislation, but it is by no means a finished product. I know there are further opportunities to improve the simplicity and workability of the legislation, including consideration of alternatives that go beyond what's in the draft bill."
The Ministry of Business, Innovation and Employment (MBIE) had chosen 100 groups or people to consult with out of 700 who registered interest. MBIE would work with Health NZ and the Ministry of Education in particular on what the bill meant for them, given their histories of huge payroll problems.
"While there may be some people who will be disappointed they were not selected to participate, I want to make clear that all Kiwis will be able to have their say when the bill goes through select committee," van Velden said.