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Most provisions of the Holidays Act 2003 came into force on 1 April 2004. One exception was the rise in the minimum annual holidays entitlement to four weeks which took effect on 1 April 2007.
Under the Employment Relations Act, every employee has an employment agreement, which can be individual or collective. Where current employment agreements do not specifically outline holiday and leave provisions, or if they refer in general terms to the Holidays Act 1981, the entitlements under the Holidays Act 2003 applied from 1 April 2004 unless a new agreement with better provisions is negotiated and agreed.
Some employment agreements may contain terms or conditions in a particular provision that are less favourable than the Holidays Act 2003 in some parts, but comply or improve on the Act in other ways (for example, by providing double time for work on public holidays, but not providing for an alternative day off).
In this case, the provision that is less favourable to the employee will be deemed to be changed, and the rest of the provision will continue to apply . (In the example above, the employee would still earn double time, but the employee would also be entitled to an alternative day off with pay.)
Employers, employees and unions should have reviewed whether the Holidays Act 2003 created any ambiguities, possibly over entitlements that have not previously been agreed upon. For example:
- any remaining reference to “special leave” rather than sick or bereavement leave might be seen as an additional entitlement.
- the absence of some details could make it difficult to determine whether the requirements of the Holidays Act 2003 are being met.
The issues that need attention will differ from workplace to workplace, but all employers, employees and unions are advised to review and, where appropriate, seek to renegotiate employment agreements now that the Holidays Act 2003 is in force, if they have not done so already.
Employers are also advised to ensure that any employment agreements offered to new employees after 1 April 2004 meet the requirements of the Holidays Act 2003.
Help Available
We welcome the opportunity to help you further. If you want further clarification, more detailed information or guidance on any matter covered here, contact the Department of Labour freephone on 0800 20 90 20 during normal business hours.
Or alternatively you may wish to contact your local union or employers’ organisation. back to top
This page was last updated on:
22-Aug-2007
and is current. |
