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March 16, 2026
#National: PSA calls on MPs to oppose Employment Leave Bill over cuts to workers’ entitlements
Dale Husband
Posted On March 16, 2026
Download AudioThe Public Service Association Te Pūkenga Here Tikanga Mahi is urging Members of Parliament to reject the Government’s proposed Employment Leave Bill, warning the changes could significantly reduce holiday pay and leave entitlements for tens of thousands of workers across Aotearoa.
The union says the legislation would alter how holiday pay is calculated under the Holidays Act, particularly affecting people whose income depends on overtime, variable hours, allowances or irregular pay patterns. For many workers, those additional hours and payments form a significant part of their weekly income. The PSA argues the bill could result in workers receiving less when taking annual leave, effectively cutting the value of their entitlements.
According to the union, the changes would disproportionately affect workers in sectors where rosters and hours fluctuate, including health, social services, education support roles and other frontline public services. Many of those roles involve part-time or irregular work patterns, meaning the proposed calculation method could reduce leave payments compared with what workers currently receive.
The PSA says part-time workers-particularly women-stand to lose the most. Women make up a large proportion of the workforce in caregiving, education, and public service roles where hours can vary from week to week. The union argues that reducing the value of leave for workers in these sectors would deepen existing inequities in pay and working conditions.
Union leaders also view the bill as part of a broader pattern of employment policy changes by the Government that they say have weakened protections for workers. The PSA points to earlier decisions affecting pay equity claims, collective bargaining arrangements and other workplace protections as evidence of a shift in the balance between employers and employees.
The organisation warns that reducing holiday pay for workers who rely on overtime or additional hours risks compounding cost-of-living pressures already being felt across many households.
The PSA is now calling on MPs from all parties to publicly commit to opposing the bill when it comes before Parliament. It says protecting leave entitlements is essential to maintaining fair workplaces and recognising the value of the work carried out by thousands of public service and community sector employees.
Beyond Parliament, the union is also encouraging workers, unions and community organisations to speak out about the potential impact of the legislation. It says public pressure and political accountability will be crucial in ensuring that long-standing leave entitlements are not weakened.
The PSA maintains that annual leave and holiday pay provisions have been hard-won rights for workers in Aotearoa, and argues any reform to the Holidays Act should strengthen clarity and fairness without reducing the value of those entitlements.
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