Photo: RNZ / Mark Papalii

Employers seem to be on board with the government's proposals to replace the Holidays Act, but unions and opposition parties fear they could trample workers' rights and entitlements.

Workplace Relations Minister Brooke van Velden announced the plan to make annual leave and sick leave pro-rated.

For every hour worked, employees would get a fraction of an hour of annual and sick leave. Those banked hours could then be used to take time off - again, measured in hours.

It means people could take only part of a day off if they get sick, or use a few hours of annual leave for recreation. Like van Velden, business groups say that's a fairer approach.

But unions argue the current availability of leave for part-time workers is no reason to take it away, and the new system could see workers' leave eaten up by doctors' visits and other life admin.

Business groups back simpler system

Employers and Manufacturers Association head of advocacy Alan McDonald said overall the new system would be largely cost neutral for businesses.

"I think the changes will go down pretty well with employers of all sizes, but especially the smaller ones. The Holidays Act as it stands has been hugely complex, it's been difficult to navigate, it's cost people in some cases tens of millions ... I think the minister and her team really need to be congratulated.

"Employees get entitlements from day one - which they don't do at the moment - and employers can look at it and go 'they're working X hours, they get Y holiday' and it just simplifies everything, it stops all these complex calculations."

He said the increased fee paid to casual workers -

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