Labour MP says govt changing sick leave provisions is 'another broken promise'

The Labour Party's deputy leader has called out Prime Minister Christopher Luxon for "another broken promise", following the government's plan to change sick leave provisions.

Minister for Workplace Relations and Safety Brooke van Velden announced planned changes to the Holidays Act 2003 yesterday, which she called a frustrating act for everybody that's especially tough on small businesses.

In Velden's press release the changes, within the exposure draft, could see annual leave move from an entitlement system to an accrual system, alongside sick leave being pro-rated for part-time workers.

“I have heard from a number of businesses who are struggling to adjust to the previous government’s decision to double sick leave entitlements for all eligible workers," Velden said.

Brooke van Velden. Photo/ACT Party

Speaking to Will Terite on Pacific Mornings, Labour's Carmel Sepuloni said this goes against PM Christopher Luxon's pre-election promise to not change or reduce sickly provisions.

"It's another broken promise," Sepuloni said.

"Who will be affected? Māori and Pacific, those that are working part-time [and] women as well.

"So yeah, just really disappointed with the undermining of this really important provision."

Watch the full interview via 531pi's Facebook below:

However, Velden said an accrual system should help avoid complex calculations that "regularly stump payroll software and should therefore reduce compliance costs for employers".

“Workplaces that rely on part-time workers are particularly vulnerable to unexpected staffing shortages.

"To explore this issue further, the exposure draft set for consultation will include a proposed approach to pro-rating sick leave, to better reflect how much an employee works."

NZ Herald reported that Pacific Business Trust chief executive Mary Los'e said the changes would help some of the nearly 2300 small-to-medium businesses her organisation supports.

Los'e said the Holidays Act's employer requirements are difficult to uphold, especially for small businesses that do not have sophisticated payroll systems.

However, Sepuloni said changing sick leave provisions contradicts Minister of Finance Nicola Willis's post-budget speech, where Willis said "the parties in this coalition government are the parties of the worker".

"Well, this certainly does not indicate they are for the workers," Sepuloni said.

"Also, we've had health experts come out and talk about the fact that we should be supporting people to stay home when they are sick and this is not conducive to that happening."

She adds the Labour Party has always felt a review of the Holidays Act was needed but that "that doesn't mean taking away sick leave provision for workers".

"I think that we need to uncomplicate the act and the system but that doesn't mean taking away sick leave provision."