Are NZ businesses obligated to pay for minimum hours, even if rostered time falls short? Legal implications of guaranteed pay in employment contracts.
Published 6 June 2024 | 2 min read
NZ businesses have long grappled with the Holidays Act 2003. The complex calculations required for annual leave and entitlements pose significant compliance challenges, especially for smaller businesses without advanced payroll systems. This complexity increases administrative burdens and costs.
Recent changes, such as doubling sick leave entitlements from five to 10 days for all eligible workers, have added to the difficulties. Businesses, particularly those with many part-time workers, face increased compliance costs and staffing challenges.