Part-time workers will get less sick leave under sweeping changes to the Holidays Act the minister says will be fairer.
Workplace Relations Minister Brooke van Velden says the revamp, which - as signalled last June - will see both annual and sick leave accumulate based on hours worked, is a win for workers, businesses and the country.
She argues the sick-leave changes for part-time workers is more proportionate and will, in the long run, increase part-time jobs in the economy.
Those receiving ACC payments will also no longer gain leave while not at work, in a change the minister says is fairer for employers.
However, other changes are expected to see gains for parents and increased pay for casual workers.
"At the heart of all of this is simplicity, so that everybody knows what they are supposed to be paying and what they're supposed to be earning," van Velden told RNZ. "We have attempted to keep equivalence to the status quo."
The complexity of the current Holidays Act has long plagued employers and led to widespread non-compliance, prompting billions of dollars in repayments, including from the government.
Van Velden hopes to introduce a new simplified scheme for compensating workers, without the complicated calculations currently required.
The changes will be progressed through a new Employment Leave Bill, which would replace the current Holidays Act, expected to pass before next year's election.
All sectors would move to this new system two years after the law is passed, with the exception of schools - which will remain on the current system for 5-10 years, because of the need to replace schools' payroll systems.
Photo: Marika Khabazi
Wins for new parents and casuals, losses for part-time and injured workers
Workers receiving weekly compensation from ACC would no longer have leave accrue, a change expected to mean savings for small businesses.
"It can be that people are on extended medical leave for quite a long time and it's very unclear when they would be returning
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