Workers won't be pressured into taking cash for leave: Key

Employers won't be able to pressure workers into cashing in their fourth week's leave, Prime Minister John Key says.

The Government intends bringing in the option when it reviews the Holidays Act and aims to have it in place by April next year.

It will have to change the 2007 law brought in by the previous government that gave employees four weeks' annual leave.

Mr Key said today National had held the trade-off policy since 2007 and campaigned on it during last year's election.

"This can only be driven by employees, not employers," he said at his post-cabinet press conference.

"Only an employee can ask to cash up the fourth week and the employer can't ask for that."

Mr Key said the Government was being consistent with its campaign policy, which was to give workers a choice.

"Some people will say they prefer a week in cash, others might want the extra week holiday," he said.

"I don't see how it helps employers - the employee will only do it because they want to do it." Opposition parties have criticised the Government for planning the law change, and Labour's complaint was that employers would put pressure on their workers.

"National was never committed to the entitlement of four weeks' holiday, brought in under a Labour government long after Australian workers won that right," Labour leader Phil Goff said.

"All evidence suggests that longer holidays increase productivity as well as being important for working parents to have quality time with their children."

The Green Party's industrial relations spokeswoman, Sue Bradford, said it would undermine workplace productivity and threaten the wellbeing of workers and their families.

"At this time of recession many employees will opt to take a payout for their fourth week of leave," she said.

"For a lot of workers it will be very hard to actively hang on to the fourth week."

Labour Minister Kate Wilkinson backed Mr Key's comments, saying it would be up to employees to approach their boss and ask for the trade-off.

She said the proposed legislation was in its very early stages as part of the review of the Holidays Act.

Terms of reference for the review were being drawn up and a working group would be established, including Business New Zealand and the Council of Trade Unions.

- NZPA