More pay in holiday overhaul

By VERNON SMALL

Employees who work on a statutory holiday will be paid at least time and a half and have a day off in lieu under a planned new holidays law.

There will also be a separate right to bereavement leave and workers will be able to accumulate the existing minimum five days a year of sick or domestic leave up to 15 days.

But the Government is divided over how many weeks annual leave workers should get.

Labour is staying with the present three weeks minimum but the Alliance has triggered the Coalition agreement's "agree to disagree" clause to press for a fourth week.

The long-awaited revamp of the Holidays Act will be introduced into Parliament this year but is unlikely to be passed before the election.

The proposed changes have been broadly welcomed by unions, but business representatives condemn the main measures, saying the added costs on business will curb economic growth, employment and productivity.

Associate Labour Minister Laila Harre said she was confident four weeks' leave would be won if the public and unions got in behind the Alliance's amendment.

"I think there's actually a fairly strong chance that will push Labour to include it in their election policy. We are going to make that easier for them by making the four weeks only come into effect next year."

She said a new entitlement to three days' leave on the death of a close relative and one day for other bereavements would particularly help those who suffered several deaths in the family in a short time and who relied on their sick leave.

The changes aimed to bring the rights of workers who had no real bargaining power to the reasonable standard achieved in negotiated agreements.

Women and workers in poorly unionised areas such as cleaning and other service industries would reap the greatest benefit. The moves reflected changes in society over the past 30 years. More families now had both parents working.

Labour Minister Margaret Wilson said Business NZ and the Council of Trade Unions would be invited to discuss details of the new law.

"While I am pleased the key issues have been agreed on, there are still technical issues to be worked through."

But Business NZ rejected her suggestion that agreement had been reached.

"In fact, there was no agreement on the substantive changes, which more closely mirror the unions' position than those of New Zealand businesses," executive director Anne Knowles said.

Increasing pay for work on statutory holidays would impose an extra burden on seven-day-a-week businesses such as the hospitality sector, retailers, residential care and farmers.

The proposal would increase costs and reduce the ability for employers and employees to vary arrangements by mutual agreement.

"We will need to look closely at the detail of the proposals, for example to ensure that if there can be the accumulation of up to 15 days sick leave and virtually unlimited bereavement leave, employers have the ability to verify that employees meet the eligibility criteria."

The tenfold rise in maximum fines for breaches of the law further increased the risk of being an employer.

The Council of Trade Unions president, Ross Wilson, welcomed the revamp with some reservations.

"There are some disappointments for workers, including the decisions against four weeks' annual leave, the protection of 11 public holidays for all fulltime workers, and allowing periodic payment in advance of holiday pay," he said.

National's industrial relations spokesman, Simon Power, said the planned law showed Labour did not understand the pressures on small business. "Paying time and a half on public holidays in addition to time off in lieu will create further financial pressure on business."

What's in store

* The present entitlement to three weeks' annual leave will be retained.

* The present five days' sick and special leave will be retained but up to 15 days can be accumulated.

* There will be a separate entitlement to bereavement leave, which at present is part of sick and special leave. The new entitlement will be three days' leave on the death of a spouse or partner, parent, child, sibling, grandparent, grandchild or spouse or partner's parent.

Otherwise there will be an entitlement to one day of leave where the employer accepts the employee has suffered a bereavement, taking into account cultural requirements.

* Employees who work on a statutory holiday will be entitled to be paid at time-and-a-half and have a day off in lieu.

At present they are entitled to a day off in lieu but while some workers in "factories and undertakings" are entitled to extra pay, rates otherwise are set by negotiation.

Waitangi Day and Anzac Day will be treated the same as the other holidays for this provision.

* Penalties for breaching the law will incur a new maximum fine of $5000 for an individual and $10,000 for a company - up from the present $500 maximum for both. The penalty for a continuing offence will increase to $1000 a day - up from $100 a day.