Annual Leave Entitlements
Employees in New Zealand accrue four weeks (20 days) of paid annual leave after completing 12 months of continuous employment with the same employer. This entitlement is a fundamental aspect of New Zealand’s commitment to work-life balance.
Scheduling Annual Leave
- Mutual Agreement: Annual leave is taken at a mutually agreed-upon time between employer and employee. Employers cannot unreasonably refuse leave requests.
- Continuous Leave: Employees can take at least two of their four weeks of leave consecutively.
- Employer-Initiated Leave: Employers can require employees to take leave under specific circumstances, such as during a company closure.
Payment During Leave
Annual leave must be paid at the higher of the employee’s ordinary weekly pay at the start of the leave or the average weekly earnings for the 12 months prior to the leave.
Cashing Out Leave
Employees can request to “cash out” a maximum of one week’s leave per year, subject to company policy and employer approval.
Leave Upon Employment Termination
Upon termination, employees are entitled to payment for unused annual leave. If employed for less than 12 months, they receive 8% of their total earnings as leave pay.
Pay-as-you-go Leave
In specific situations, employees on fixed-term contracts under 12 months or with irregular work patterns can agree to receive leave entitlements in each pay cycle at 8% of their earnings.
Managing Leave Balances
Effective leave management is crucial for both employers and employees. Encourage regular leave-taking to prevent large leave balances from accumulating and ensure employees have sufficient rest.
Leave Requests and Arrears
When an employee requests leave exceeding their accrued balance, consistent responses are key. Employers can require unpaid leave for excess days or allow “dipping into arrears” (getting paid for leave not yet accrued). Clear mechanisms should address potential issues if the employee leaves before repaying leave taken in advance.
2025 Public Holidays
In addition to annual leave, employees are entitled to paid leave on public holidays. This includes:
| Holiday | Date |
|---|---|
| New Year’s Day | 1 January |
| Day after New Year’s Day | 2 January |
| Waitangi Day | 6 February |
| Good Friday | 18 April |
| Easter Monday | 21 April |
| Anzac Day | 25 April |
| King’s Birthday | 2 June |
| Matariki | 20 June |
| Labour Day | 27 October |
| Christmas Day | 25 December |
| Boxing Day | 26 December |
2026 Public Holidays
| Holiday | Date |
|---|---|
| New Year’s Day | 1 January |
| Day after New Year’s Day | 2 January |
| Waitangi Day | 6 February |
| Good Friday | 3 April |
| Easter Monday | 6 April |
| Anzac Day | 25 April (Observed Monday 27 April) |
| King’s Birthday | 1 June |
| Matariki | 10 July |
| Labour Day | 26 October |
| Christmas Day | 25 December |
| Boxing Day | 26 December (Observed Monday 28 December) |
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Understanding annual leave laws in New Zealand benefits both employers and employees. These regulations ensure a fair and transparent leave process, promoting employee well-being and productivity. By familiarizing yourself with these entitlements, you can foster a respectful and compliant work environment.
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Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of New Zealand employment laws and regulations, please visit the official governmental websites.
Updated on: February 2025
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