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Business South has welcomed today's passing of the Employment Leave Bill, saying any genuine simplification of the Holidays Act will be good news for businesses and workers across Otago and Southland.

"We've heard from members for years about how confusing and costly the current leave calculations are, especially for small businesses without dedicated payroll or HR support," says Business South Chief Executive Mike Collins. "Anything that brings clarity and confidence for both employers and employees is a step in the right direction."

Mr Collins says the move to hours-based accrual and a single hourly rate for leave payments should ease the compliance burden that has hit smaller operators hardest.

"Otago and Southland run on seasonal and casual work, think tourism, hospitality, agriculture. A clearer test for calculating leave, and better provision for casual and additional hours, could make a real difference for the operators who've struggled most to apply the current rules consistently."With a 24-month lead-in and a further year to update employment agreements, Mr Collins says the transition timeline gives businesses room to prepare properly.

"This isn't happening overnight, and that's the right call. Our focus now is making sure our members get in early rather than leaving it to the last minute. Business South will be keeping members updated as MBIE's guidance rolls out."

Mr Collins says the detail of implementation will matter as much as the policy itself.

"Our ask is that the guidance is written for the person running a five-person business, not just payroll specialists. Plain language, practical examples, and support that reaches regional businesses, not just the main centres."

Business South will provide further updates and support for members as implementation guidance is released. Contact our team if you have any questions.