Business Central welcomes Holidays Act reform
- Sep 24, 2025
- 1 min read
Business Central welcomes the Government’s decision to replace the Holidays Act with a new Employment Leave Act next year.
Business Central Acting Chief Executive Amanda Wood says it’s a long-awaited move that will bring much-needed clarity and simplicity to leave entitlements, and it is positive that the planned new legislation will contain the policy
recommendations of Business Central members.
"The shift to an hours-based approach for calculating leave is particularly welcome, as it addresses one of the most persistent pain points for businesses," Ms Wood says.
Other changes in the new legislation will include leave entitlements required to be proportionate to hours worked, access to leave entitlements from the first day of employment, increased leave compensation payments for casual employees, more flexibility to cash up annual leave, and requirements for employers to provide explicit pay statements.
"These changes will help create a more predictable and user-friendly system that benefits both employers and employees," Ms Wood says.
"It’s a positive step toward modernising workplace legislation and supporting business confidence, and we look forward to engaging further on these changes."
